A company’s annual report (form 10-K) consists of the following:
- Financial statements consist of balance sheet, income statement, statement of stockholders’ equity, and the statement of cash flows.
- Notes to financial statements contain information regarding assumptions, estimates, accounting methods, and any other details that are not apparent in the financial statements.
- The auditor’s report is a review of the company’s statements submitted by an independent (third-party) auditor.
- Management’s Discussion and Analysis (MD&A) is management’s interpretation and outlook of the company’s financial performance
The annual report, among other accounting information released by the company, is used by both external (investors, creditors, regulators) and internal (management) parties.