Definition: Reports created annually that provide an analysis and assessment of trends in the past year.
An annual report can help you understand the strengths and weaknesses of your business economy, since it provides a picture of corporate earnings.
Annual reports are also used to show the company’s financial situation to users such as creditors and other collaborators. You can also use your annual report to find out how your enterprise economy can be improved.
It is important to have a credible annual report, eg: when your collaborators will assess your ability to obtain credit and borrow money. The annual report does not indicate the tax considerations, they must instead be shown through tax accounting.