An Annual Report is usually required by your local legislation but have you ever stopped and wondered why it\u2019s asked? Why put an extra obligation to a company\u2019s management to prepare a report that\u2019s hardly used by the management itself? Truth be told, there are management who find it their pride and joy to see a fully prepared Annual Report as it\u2019s the summary of how they did during the last financial year just as well as how the company did.<\/p>\n
But that aside now, an Annual Report is required due to various reasons:<\/p>\n
–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It provides information about the financial position of the company \u2013 how liquid it is, what financing it may need and so on;<\/p>\n
–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Since the Annual Report is all about how the reporting year went, one also gets an overview of the financial performance of a company with the Annual Report;<\/p>\n
–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It also shows the results of management\u2019s stewardship of the resources entrusted to them, shows how well or how bad they did with the company.<\/p>\n
To summarize those reasons, what they serve is the users of the report \u2013 usually a wide range with different expectations to the report \u2013 who as it happens, read the report for a reason of their own. It\u2019s either to make economic decisions, to get some form of inside information about the industry and so on. It\u2019s also the government who\u2019s interested in statistical information apparent from Annual Reports \u2013 number of employees, industry information etc. An Annual Report is prepared for various reasons as you can see.<\/p>\n","protected":false},"excerpt":{"rendered":"
An Annual Report is usually required by your local legislation but have you ever stopped and wondered why it\u2019s asked? Why put an extra obligation to a company\u2019s management to prepare a report that\u2019s hardly used by the management itself? Truth be told, there are management who find it their pride and joy to see […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28,46],"tags":[],"class_list":["post-3869","post","type-post","status-publish","format-standard","hentry","category-4-reporting","category-4-1-annual-report"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=3869"}],"version-history":[{"count":1,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3869\/revisions"}],"predecessor-version":[{"id":3870,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3869\/revisions\/3870"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=3869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=3869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=3869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}