At the end of every fiscal period businesses prepare annual report.
An annual report is reflection of company's financial performance and operations for the year.
Publicly traded companies make annual reports to tell shareholders, prospective investors and customers, how business is functioning and progressing.
There are eight steps for creating annual report in accounting:
"Step 1
Know that the 10-K annual report that public companies file with the Securities and Exchange Commission is different from the less formal - and glossier - annual report mailed to shareholders.
Step2
Break the report into five sections: financial summary; letter to shareholders; company operations and significant developments; financial statement and tables; and information about officers and directors.
Step3
Write the financial summary. This narrative generally covers revenue, net income and earnings per share data. Typically it includes three years' worth of data.
Step4
Include the letter to shareholders. Here, the chief executive officer or chairman makes a formal statement about company performance.
Step5
Compose a series of articles about operations and significant developments. You might discuss changes in production, new products, entry into new markets, mergers and acquisitions, research and development, changes in marketing and sales, and other news. Many companies include color photos.
Step6
Write the financial statement. This section consists largely of tables showing revenue, expenses and earnings data in detail. This is the heart of the report, though it usually appears at the rear of the publication.
Step7
Include summary information about officers and directors. Photos usually accompany this section.
Step8
Ask company attorneys and accountants to review the document to ensure accuracy and regulatory compliance." (http://www.ehow.com/)
I am personally majoring in the Business management and it's been a big challange for me to study an accounting. Sometimes it felt like i was studying totally new lenguage with undiscovered new terms and new symbols; however, every business major student understands that the importance of the accounting in business is vital..
References: Business & Finance , eHow website 1999-2009. Retrieved on April12, 2009
from: http://www.ehow.com/how_16565_write-annual-report.html
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ReplyDeleteOnce again George, you have done an amazing job. Your post takes up alot of space though. 250 words bro. Great Video. Great graphics. Annual reports are not only important for the companies internal operations, but also serves as great references for investors, the government, and the public sector.
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