What is an annual report?
An annual report provides a current listing of officers and directors for a corporation and members/managers for a limited liability company. The name and address of the registered agent and registered office may also be changed when filing the annual report. The annual report is required to be filed by statute for each corporation and limited liability company that is registered with the Secretary of State’s office to remain in good standing in the State of Montana.
An annual report contains detailed audited financial statements showing the operational and financial status of a corporation over the past year, including income and cash flow statements as well as the balance sheet. It is published annually for the benefit of all shareholders and to satisfy regulatory requirements.
An annual report is a statement prepared by a publicly traded company and distributed to employees, customers, shareholders, and the general community. A more detailed copy of an annual report, called a 10-K, is filed with the United States Securities and Exchange Commission (SEC), which has required companies to issue an annual report since 1934. The contents of an annual report provide information about how well the business is doing financially, upcoming changes projected for the next year, and the management staff of the company. Concerned parties, such as shareholders, can use an annual report to make important decisions. At a minimum, an annual report must include a balance sheet, a report from an independent auditor, an income statement, and a general report on company operations. Most companies, however, use the document as a marketing tool as well, and take time to talk about the history of the industry the company is involved in along with emerging trends. Most annual reports
• All publicly traded companies are required by the SEC (Securities and Exchange Commission) to publish certain financial data annually. The annual report is a publication that is distributed by these publicly traded companies to their shareholders. Most annual reports are very similar in the different types of information contained. Some of the common sections are: Letter from the chairman (or CEO) to the shareholders; Financial Highlights; Balance Sheets; Profit and Loss Statements; New Business; Year in Review; Projections; Outstanding Shares of Stock and Complete list of Board Members. Because this information is audited and required by the SEC, Annual Reports are an excellent way to familiarize your self with a company before you invest.
