Annual report / Form 10 K
Encyclontry159pedia of Business Terms and Methods, ISBN 978-1-929500-10-9. Copyright © 2011 by Marty J.Schmidt. Revised 10 January 2012.
The Meaning of Annual Report and Form 10K
A company annual report is a report prepared yearly by publicly held corporations, that must be distributed to shareholders. The report is meant as a communication vehicle to the company's share holders, potential investors, and the general public.
Annual reports normally present the company’s financial statements (income statement, balance sheet, cash flow statement (statement of changes in financial position, statement of retained earnings), notes to financial statements, and other material of interest to investors and other outside parties. The CEO, President, CFO, and other senior officers of the company may comment on the company's financial performance, but also the company's plans for the next year, the company's strategy, or special problems for the company.
In the United States, publicly held companies are also required to file Securities and Exchange Commission (SEC) Form 10-K, with the SEC, within 90 days of the end of their reporting year. Compared to the annual report, Form 10-K is a more comprehensive and detailed summary of the business, including more detailed financial information.
Company annual reports, including financials, are usually available on the company's internet site under menu headings such as "Investor Relations" or "Shareholder Information." Companies differ greatly in their publication of Form 10-K, however. Some companies mail the Form 10-K directly to shareholders, and a few post the form along with the annual report on the web site. However, it is a legal requirement in the United States for companies to make available their Form 10-K to any shareholder who requests it. One result of this is that all company 10-K Forms do become available to the public, but sometimes the easiest way to have access to the form, for people who do not own stock in the company, is to use paid online information services.
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