R.E.C. Inc.’s staff of accountants finished preparing the financial statements for 2010 and will meet next week with the company’s CEO as well as the Director of Investor Relations and representatives from the marketing and art departments to design the current year’s annual report. Write a paragraph in which you present the main idea(s) you think the company should present to shareholders in the annual report. Why do you think those ideas should be included?
The annual report should start off with a letter from the CEO discussing the financial status of the company as well as any future plans and major changes over the previous year. The financial status section should be included next so that management and shareholders can have an understanding of where the company is. If a third party auditor was brought in their report should be included in this section. The next sections will include the management analysis and discussion and management discussion of financial responsibility which will give management the opportunity to discuss the previous year. The financial statements will be listed next and will include the financial statement, balance sheet, and cash flow sheet.
Epstein, L. (2014). Financial decision making: An introduction to financial reports. San Diego, CA: Bridgepoint Education, Inc