Annual Report
West's Encyclopedia of American Law, October, 2005
ANNUAL REPORT
A document published by public corporations on a yearly basis to provide stockholders, the public, and the government with financial data, a summary of ownership, and the accounting practices used to prepare the report.
Annual reports measure a corporation's financial health. They focus on past and present financial performance, and make predictions about future prospects. By law, any corporation that holds an annual meeting for stockholders or security holders is required to issue an annual report. Regulations set down by the SECURITIES AND EXCHANGE COMMISSION (SEC) specify in detail what information the report must include about the corporation's finances, markets, and management. The rules are strict: the SEC can levy stiff penalties if corporations...
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