{"id":4473,"date":"2016-04-04T10:47:30","date_gmt":"2016-04-04T15:47:30","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-finances\/user-friendly-annual-report-questionnaire.html"},"modified":"2024-06-06T04:28:11","modified_gmt":"2024-06-06T09:28:11","slug":"user-friendly-annual-report-questionnaire","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/user-friendly-annual-report-questionnaire.html","title":{"rendered":"User-Friendly Annual Report Questionnaire"},"content":{"rendered":"\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n    \n    <div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\">\n        <h1 class=\"fl-no-margin-top\">Annual Report Checklist <\/h1>\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    <p><i>Created by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw&#8217;s team<\/a> of legal writers and editors<\/i><\/p>\n\n                | Last updated\n        <time>\n                            June 06, 2024\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n<p>Annual reports are an integral part of not only the <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/basic-terms-for-shareholders-and-investors.html\" adhocenable=\"false\">annual shareholder meeting<\/a>, but also your company&#8217;s reputation. The annual report helps shareholders make important financial decisions&nbsp;and helps them make informed decisions as to <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/corporate-structure-directors-to-shareholders.html\" adhocenable=\"false\">how to vote<\/a> on corporate matters. Specifically, shareholders view the annual report of a company in terms of measurements, such as earnings per share, intangible and tangible assets and dividend yield.<\/p>\n<p>Shareholders, and the public, will want to review the company&#8217;s financial statements. They&#8217;ll be looking for trends in profitability and growth. Is this company growing and moving forward, or is it downsizing? Typically annual reports are issued by <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/pros-and-cons-going-public.html\" adhocenable=\"false\">publicly traded companies<\/a>. Privately-held companies don&#8217;t issues statements for the public to scrutinize, unless absolutely necessary.<\/p>\n<h2>Reading an Annual Report<\/h2>\n<p>Reading an annual report can be somewhat confusing, but most annual reports typically contain the same basic structure. Expect to find:&nbsp;<\/p>\n<ul>\n<li>Letter from the chairperson of the board;<\/li>\n<li>Important information on sales and marketing;<\/li>\n<li>Summary of the company&#8217;s financial results;<\/li>\n<li>Financial statements (including&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/financial-statements-the-balance-sheet.html\" adhocenable=\"false\">balance sheets<\/a>, income statements, cash flow statements and statements of shareholder equity);<\/li>\n<li>Letters from a CPA;<\/li>\n<li>List of directors and officers;<\/li>\n<li>Stock price history; and<\/li>\n<li>Analysis from management.<\/li>\n<\/ul>\n<p>The annual report must accurately describe the financial condition of the company and its future direction. FindLaw has put together a questionnaire that will help you determine whether your annual report satisfies the interests of analysts and shareholders.<\/p>\n<table width=\"100%\" cellspacing=\"0\" cellpadding=\"7\" border=\"0\" style=\"font-size: 12px; font-family: sans-serif;\">\n<tbody><tr><td><table width=\"95%\" cellspacing=\"0\" cellpadding=\"7\" border=\"0\" align=\"center\" style=\"font-size: 12px;\">\n<tbody><tr><td>&nbsp;<\/td>\n<\/tr><tr><td width=\"80%\">&nbsp;<\/td>\n<td width=\"20%\" colspan=\"2\"><p><b>Yes\/No<\/b><\/p>\n<\/td>\n<td>&nbsp;<\/td>\n<\/tr><tr><td valign=\"top\"><p>My annual report provides analysis and a sense of my company&#8217;s direction for the next year, not just a recap of the past year.<\/p>\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td>&nbsp;<\/td>\n<\/tr><tr><td valign=\"top\"><p>My annual report makes financial data immediately available and encapsulates it through charts and graphs.<\/p>\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td>&nbsp;<\/td>\n<\/tr><tr><td valign=\"top\"><p>My annual report&#8217;s narrative is future-oriented, and describes management philosophy and growth plans.<\/p>\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td>&nbsp;<\/td>\n<\/tr><tr><td valign=\"top\"><p>My annual report is written in a way that appears to tell my company&#8217;s story to the average shareholder.<\/p>\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td>&nbsp;<\/td>\n<\/tr><tr><td valign=\"top\"><p>My annual report uses descriptive headings and sub-headings to communicate to readers who only skim the report, and to draw them into reading more thoroughly.<\/p>\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td>&nbsp;<\/td>\n<\/tr><tr><td valign=\"top\"><p>My annual report contains a brief but thorough synopsis of my company&#8217;s markets and lines of business.<\/p>\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td>&nbsp;<\/td>\n<\/tr><tr><td valign=\"top\"><p>My annual report&#8217;s operations review tells the story quickly and concisely, and describes how divisions fare in their respective markets.<\/p>\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td>&nbsp;<\/td>\n<\/tr><tr><td valign=\"top\"><p>My annual report is attractively packaged, with an engaging cover, pictures, captions, and other elements that catch an average shareholder&#8217;s attention.<\/p>\n<\/td>\n<\/tr><\/tbody><\/table>\n<\/td>\n<\/tr><tr><td valign=\"top\"><p>My annual report is written with its role as a marketing tool in mind, and would be useful to a shareholder recommending my company&#8217;s stock to a friend or relative.<\/p>\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<td><hr>&nbsp;\n\n<\/td>\n<\/tr><\/tbody><\/table>\n<p>The more &quot;Yes&quot; answers you gave, the more your annual report satisfies the reported interests of both analysts and shareholders.&nbsp; The more &quot;No&quot; answers you gave, the more you may wish to explore reformatting your annual report to fulfill its potential value to your company.<\/p>\n<h2>Seeking Legal Advice<\/h2>\n<p>When dealing with corporate shareholders, you&#8217;ll want to ensure your annual report is accurate and in compliance with the law. Speak to an knowledgeable <a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/\" adhocenable=\"false\" target=\"_blank\" rel=\"noopener\">business and commercial law attorney<\/a> today if you have any questions.&nbsp;<\/p>\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        <path id=\"Vector\"\n                              d=\"M6 21H3C2.46957 21 1.96086 20.7893 1.58579 20.4142C1.21071 20.0391 1 19.5304 1 19V12C1 11.4696 1.21071 10.9609 1.58579 10.5858C1.96086 10.2107 2.46957 10 3 10H6M13 8V4C13 3.20435 12.6839 2.44129 12.1213 1.87868C11.5587 1.31607 10.7956 1 10 1L6 10V21H17.28C17.7623 21.0055 18.2304 20.8364 18.5979 20.524C18.9654 20.2116 19.2077 19.7769 19.28 19.3L20.66 10.3C20.7035 10.0134 20.6842 9.72068 20.6033 9.44225C20.5225 9.16382 20.3821 8.90629 20.1919 8.68751C20.0016 8.46873 19.7661 8.29393 19.5016 8.17522C19.2371 8.0565 18.9499 7.99672 18.66 8H13Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\"\n                              stroke-linejoin=\"round\"><\/path>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3418\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"><\/rect>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"No\"\n                value=\"no\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">No<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-down\" clip-path=\"url(#clip0_604_3423)\">\n                        <path id=\"Vector\"\n                              d=\"M16 0.999995H18.67C19.236 0.989986 19.7859 1.18813 20.2154 1.55681C20.645 1.9255 20.9242 2.43905 21 3V10C20.9242 10.5609 20.645 11.0745 20.2154 11.4432C19.7859 11.8119 19.236 12.01 18.67 12H16M9.00003 14V18C9.00003 18.7956 9.3161 19.5587 9.87871 20.1213C10.4413 20.6839 11.2044 21 12 21L16 12V0.999995H4.72003C4.2377 0.994543 3.76965 1.16359 3.40212 1.47599C3.0346 1.78839 2.79235 2.22309 2.72003 2.7L1.34003 11.7C1.29652 11.9866 1.31586 12.2793 1.39669 12.5577C1.47753 12.8362 1.61793 13.0937 1.80817 13.3125C1.99842 13.5313 2.23395 13.7061 2.49846 13.8248C2.76297 13.9435 3.05012 14.0033 3.34003 14H9.00003Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3423\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"\/>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n    <\/div>\n    <span class=\"was-this-helpful__taken-action fl-text-sm-bold\"><\/span>\n    <div class=\"was-this-helpful__feedback-container\">\n        <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n            <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n        <\/div>\n        <form class=\"was-this-helpful__feedback-form\">\n            <div class=\"was-this-helpful__feedback was-this-helpful__feedback--positive\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this helpful?<\/legend>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--understandable\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Easy to understand\"\n         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for=\"was-this-helpful__radio-button--solved-problem\"\n                        >Solved my problem<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__feedback was-this-helpful__feedback--negative\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this not helpful?<\/legend>\n                    <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n                        <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Too complicated\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--dated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Out of date\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--dated\"\n                        >Out of date<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n               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