Annual report
An annual report is the yearly package a company publishes for shareholders, combining management commentary, governance disclosures, the audited financial statements and explanatory notes.
See it move
An annual report bundles management commentary, governance disclosures, the audited financial statements and explanatory notes. The financial statements — balance sheet, income statement, cash-flow statement and notes — are only one section. A front-matter claim that revenue rose from €1,000,000 to €1,120,000, a 12% increase, should trace directly to that audited income statement.
Check yourself
An annual report's front-matter management commentary states that operating profit rose from €340,000 to €391,000. What percentage increase should a reader be able to verify against the audited income statement further into the same document?