This is not one of the Seven Simple Questions that I mentioned earlier. This is a question that stands all by itself, alone.
Balance Sheets ; Income Statement ; Financial Statement Annual reports are formal financial statements that are published yearly and sent to company stockholders and various other interested parties.
Both for-profit and not-for-profit organizations produce annual reports.
Annual reports have been a Securities and Exchange Commission SEC requirement for businesses owned by the public since Companies meet this requirement in many ways. At its most basic, an annual report includes: General description of the industry or industries in which the company is involved. Audited statements of income, financial position, cash flow, and notes to the statements providing details for various line items.
Some companies provide only this minimum amount of information. Annual reports of this type usually are only a few pages in length and produced in an inexpensive fashion.
The final product often closely resembles a photocopied document. For these companies, the primary purpose of an annual report is simply to meet legal requirements. With this in mind, many medium-sized and large companies devote large sums of money to making their annual reports as attractive and informative as possible.
In such instances the annual report becomes a forum through which a company can relate, influence, preach, opine, and discuss any number of issues and topics.
An opening "Letter to Shareholders" often sets the tone of annual reports prepared for publicly held companies. The chairman of the board of directors, the chief executive officer, the president, the chief operating officer or a combination of these four usually sign the letter on behalf of company management.
Some of these letters may run a dozen or more pages and include photographs of the CEO in different poses some even expound on topics that, while perhaps of only tangential interest to stockholders and other readers, are of importance to the CEO.
More often, however, these letters are significantly shorter, amounting to 3, words or fewer. In addition, particular events or economic conditions of a given year may be incorporated into the themes advanced in an annual report.
Companies also use milestone anniversaries—including industry as well as company anniversaries—in their annual reports.
Promoting a long, successful track record is often appealing to shareholders and various audiences, for it connotes reliability and quality. Still other companies have developed a tried-and-true format that they use year after year with little change except updating the data. Employees who today are also likely to be shareholderscustomers, suppliers, community leaders, and the community-at-large are also targeted audiences.
Employees The annual report serves many purposes with employees. It provides management with an opportunity to praise employee innovation, quality, teamwork, and commitment, all of which are critical components in overall business success.
In addition, an annual report can also be used as a vehicle to relate those company successes—a new contract, a new product, cost-saving initiatives, new applications of products, expansions into new geographies—that have an impact on its work force.
Seeing a successful project or initiative profiled in the annual report gives reinforcement to the employees responsible for the success. The annual report can help increase employee understanding of the different parts of the company.
The annual report can show employees how they fit into the "big picture. So, like other shareholders, these employees can use the annual report to help gauge their investment in the company. Customers Customers want to work with quality suppliers of goods and services, and an annual report can help a company promote its image with customers by highlighting its corporate mission and core values.
Customers are reducing their number of suppliers, and one evaluation criterion is financial strength. They want committed and capable suppliers that are going to be around for the long term. Successful companies today quickly weed out such companies.
Sometimes an annual report will even offer a profile of a supplier that the company has found exemplary.
Such a profile serves two purposes. First, it rewards the supplier for its work and serves to further cement the business relationship. The Community Companies invariably pay a great deal of attention to their reputation in the community or communities in which they operate, for their reputations as corporate citizens can have a decisive impact on bottom-line financial performance.
A company would much rather be known for its sponsorship of a benefit charity event than for poisoning a local river, whatever its other attributes.
Many annual reports discuss community initiatives undertaken by the company, including community renovation projects, charitable contributions, volunteer efforts, and programs to help protect the environment. The objective is to present the company as a proactive member of the community.
This sort of publicity also can be valuable when a company is making plans to move into a new community. Companies seek warm welcomes in new communities including tax breaks and other incentives. Communities will woo a company perceived as a "good" corporate citizen more zealously than one that is not.
The good corporate citizen also will receive less resistance from local interest groups.
Generalizations, however, are difficult.Jun 30, · Pro forma information required by S-X Article 11 should be filed at the same time the audited financial statements of the acquired business are filed.
Presentation of the acquiree’s financial statements without accompanying pro forma information can be misleading, and there is an expectation that the information .
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The dynamics over the years between the homeowners and the FCC to can be summed up as follows: The Fountains of Palm Beach was a homeowner centric community prior to , and it was the residents (not the FCC members) who were the focal point, with .
Financial statements are meant to present the financial information of the entity in question as clearly and concisely as possible for both the entity and for readers. To enable it to discharge its executive functions, the Board has established four principal standing committees, each governed by written terms of reference, defining the frequency of meetings, power and duties and reporting obligation.