A document published yearly, required by regulatory bodies, that provides a comprehensive overview of a specific company’s activities throughout the preceding year. It includes audited financial statements, such as balance sheets, income statements, and cash flow statements, offering insights into the organization’s financial performance and position. For example, a publicly traded entertainment company will present its revenue, expenses, assets, and liabilities in this report.
These reports serve as crucial tools for investors, analysts, and stakeholders to evaluate a company’s profitability, solvency, and overall financial health. They enable informed decision-making regarding investments and strategic planning. Historically, the requirement for such reporting stemmed from the need for transparency and accountability in financial markets, protecting investors and maintaining market integrity.
