Overview

A Corporate Annual Report is the formal documentation of a company's operating and financial performance for a fiscal year. It contains a range of information that individual and institutional investors can read to understand the company's performance for the recent year. Although annual reports record historical operating results, they are also used to discuss operating strategies and expected financial performance in the future.

One of the reasons that the Corporate Annual Report is so valuable to investors is that it is governed by strict accounting reporting requirements. Each company must have the financial information in its annual report audited for compliance by an independent accounting company. These Certified Public Accounting (CPAs) companies audit and review all the financial information contained in a company's annual report and attest that the information is correct and accurate. The required auditor's opinion is intended to give investors confidence that the financial information presented is accurate and conforms to Generally Accepted Accounting Principles (GAAP).

Originally, Corporate Annual Reports contained primarily financial information about the corporation's operating performance. Over the years, annual reports have grown to include more information about the different operating divisions as well as about the entire corporation's financial performance. They also present the culture and core values of the corporation, the strategies for growth for the future, and a good amount of public relations that highlight the strengths and successes of the corporation.

Corporate Annual Reports are also available on company websites. The company home page will generally have...