Yes. I mean why not? Using your last year’s Annual Report is in fact sensible and a smart move to do. 

There are a few things to keep in mind though when you’re following the course of using one year’s report as a base. First thing first, make sure you update all the references to dates, all the references to years within text and tables. It’s sounds obvious but truth of the matter is that it’s often enough forgotten or just partly done, i.e. not all tables are updated. It’s needless to say that all figures should also be changed and updated. The current year’s figures should really be this year’s one and prior year figures prior year ones and not the ones before the prior period.

Another comment I’d like to make on the question asked is that always ensure the texts themselves are still valid. For an example you shouldn’t state you made an allowance for receivables in this year if you didn’t do so. Sounds obvious, but for some reason is often overlooked.

Using the last year’s Annual Report as a base is a smart move but always make sure you follow those few simple rules we made above.