Securities and Investment Fraud and Misrepresentation FINRA Arbitration and Litigation Laywer, Russell L. Forkey, Esq.
Annual Reports - continue to be a source of useful and allegedly accurate information for shareholders and potential investors to rely upon for information about a company in which they currently hold stock or are thinking about investing in. But in reviewing these reports, readers must know what to look for and have a general understanding of the information that is supposed to or is usually contained therein. Thus, this post is being provided as a basic check list of these items. The information is being provided for educational purposes only. Consequently, it is not designed to be complete in all material respects. It should not be relied upon as providing legal or investment advice. If you have any questions relative to its content, you should contact a qualified professional.
What type of information does the annual report usually contain?
The majority of annual reports of major public companies include a table of contents on the inside front cover. The following sections are typical:
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Contents:
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Review of Operations
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Financial Statements
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Report of Independent Accountants
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Consolidated Financial Statements
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Statement of Consolidated Cash Flows
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Notes to Financial Statements
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Supplementary Tables
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Management's Discussion and Analysis
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Investor's Information
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Directors and Officers.
Closely held corporations usually do not provide annual reports, which contain as much detailed information as does that of a public company. The information required to be provided to shareholders in closely held corporations is usually provided for in a shareholders agreement, bylaws of the company or minimually provided for by statute in the state where the corporation is incorporated.
For a more complete discussion of each of the items contained above, please follow the highlighted links.
