Annual reports can be daunting, and you may be relieved to know you don’t actually need to scour every page of one. The following list gives you the big picture on annual reports, from a UK perspective:
Chairman’s statement: A report from the chairman about progress during the preceding year and prospects for the future.
Operating review: Sometimes called the Operating and Financial Review (or OFR), this is a report by the key directors of the main divisions of the company giving management’s view on progress.
Directors’ report and directors’ remuneration report: These reports give information required by the Companies Act and the Stock exchange.
Auditor’s report: A statement by the auditor regarding the findings of their audit of the company’s books.
Financial statements: These include the balance sheet, income statement, and the statement of cash flows.
