Understanding Business Accounting For Dummies - UK, 4th UK Edition
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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.

About This Article

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About the book authors:

Colin Barrow was head of the Enterprise Group at Cranfield School of Management for ten years and is the best-selling author of Starting a Business For Dummies. He launched the Business Growth Program, the UK's most successful and longest-running training program for business managers. Since that time, Barrow has taught at business schools across the US and Europe. John A. Tracy, CPA, is professor of accounting, emeritus, at the University of Colorado in Boulder.

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