Companies use anual reports to reveal the financial status, usually to stakeholders and potencial investors. The annual report usually starts off with a letter from the CEO addressed to shareholders. The letter usually includes the positive and sometimes negative events from the compabny over the year; it also may include a brief history of the company.
Secondly, the annual report includes the financial highlights of the the year and this is usaully displayed by graphs and charts with a comparision with the previous year figures. This includes the price per share, dividend information, profit ect.
Annual reports also include all the financial statements from the year including information from balance sheets, assets and company liabilities. If invetstors were looking to by shares within the company they would need to anaylse these reports and possibly compare them with a different company to see which company is worth investig in. E.g. Tui and Thomas Cook.
The main users of annual reports are:
Shareholders: they use the annual report to analyse how well the company is doing and…