Crash Course in Accounting and Financial Statement Analysis, Second Edition

Summary

A company’s annual report is made up of a number of standard sections (Exhibit 4.14).

Exhibit 4.14. Annual Reports

Letter to Stockholders	A marketing piece summarizing a company’s recent achievements and near-term strategic initiatives
Financial Highlights	Key financial statistics for a company’s most recent 5– to 10-fiscal-year period
Management’s Discussion and Analysis	Summary and analysis of the company’s financial results for the completed year
Financial Statements	Consolidated Statement of Earnings (Income Statement) Consolidated Balance Sheet Consolidated Statement of Cash Flows Consolidated Statements of Stockholders’ Equity
Notes to Consolidated Statements	Provide supplementary information to consolidated financial statements Summarize significant accounting policies a company uses in preparation of its financial statements
Report of Management’s Responsibilities	Overview of management’s responsibilities relating to financial statement preparation
Certification of Financial Statements	Certification by CEO and CFO that information presented in their companies’ financial reports is accurate and fairly represents their operational and financial condition
Risk Factors	Summary of industry- and company-specific risks
Legal Proceedings	Overview of key legal proceedings against a company
Report of Independent Auditors	Summary opinion of an independent auditor relating to financial statements and their preparation in accordance with U.S. GAAP
Directors and Officers	Summary of top company executives ...