Yakub02
Banned
1.1 Introduction An annual report is a comprehensive report on a company's activities throughout the preceding year.
Annual reports are intended to give shareholders and other users, who are interested, information about the company's activities and financial performance. Most jurisdictions, including Nigeria, require companies to prepare and disclose annual reports, and many require the annual report to be filed at the company's registry, in Nigeria the Corporate Affairs Commission (CAC). Companies listed on a stock exchange are also required to report at more frequent intervals (depending upon the rules of the stock exchange involved).
1.2 Content of annual reports In addition to the audited financial statements, annual reports contain a great deal of extra information. This information might be: numerical and/or narrative; and
financial and non-financial. A lot of the information is provided in narrative form. There is a view that narrative reports can be much easier to understand than financial statements and notes to the financial statements. The extra information provided may be provided on a mandatory or voluntary basis. Mandatory and voluntary disclosures Disclosures may be a mandatory requirement of the law or other regulations,
other may be provided as voluntary disclosures by a company. In practice, the disclosures by a company are likely to be a mixture of mandatory and voluntary disclosures. The nature and amount of mandatory disclosures depends on the laws and regulations of the country. Some disclosures are required by law. For example, companies are required to prepare an annual report and accounts, and present these to the shareholders. Company law specifies what the directors’ report and the accounts must contain, and in addition other regulations about content apply such as the requirements of Financial Reporting standards.
Annual reports are intended to give shareholders and other users, who are interested, information about the company's activities and financial performance. Most jurisdictions, including Nigeria, require companies to prepare and disclose annual reports, and many require the annual report to be filed at the company's registry, in Nigeria the Corporate Affairs Commission (CAC). Companies listed on a stock exchange are also required to report at more frequent intervals (depending upon the rules of the stock exchange involved).
1.2 Content of annual reports In addition to the audited financial statements, annual reports contain a great deal of extra information. This information might be: numerical and/or narrative; and
financial and non-financial. A lot of the information is provided in narrative form. There is a view that narrative reports can be much easier to understand than financial statements and notes to the financial statements. The extra information provided may be provided on a mandatory or voluntary basis. Mandatory and voluntary disclosures Disclosures may be a mandatory requirement of the law or other regulations,
other may be provided as voluntary disclosures by a company. In practice, the disclosures by a company are likely to be a mixture of mandatory and voluntary disclosures. The nature and amount of mandatory disclosures depends on the laws and regulations of the country. Some disclosures are required by law. For example, companies are required to prepare an annual report and accounts, and present these to the shareholders. Company law specifies what the directors’ report and the accounts must contain, and in addition other regulations about content apply such as the requirements of Financial Reporting standards.
