Annual Accounts

Annual Accounts

Although the standard components of a basic annual report such as balance sheet, profit and loss statements and cash flow statements provide key financial information of interest to shareholders and others, there are occasions when more thorough information is desired. Some larger companys have subsidiaries, participate in joint ventures and operate in multiple geographic jurisdictions. The complexity of these operations demands the provision of the level of detail found in what is called Annual Accounts.

Annual accounts information also differs in showing data for multiple years as well as principal exchange rates and changes in accounting policies from year-to-year. Different accounting policies may result in different figures, so a firm must provide an explanation where applicable, so that all groups of shareholders and interested parties may be fairly informed. In many cases Annual Accounts provide notes and disclosures in applicable details such as deferred taxation, interest on borrowings, assets and liabilities reflected.

The composition of Annual Accounts is guided by applicable governmental bodies and legislation such as that found in the International Accounting Standards Board and American Securities Exchange Commission. In addition to substantially more detailed information, firms such as limited liability companys, insurance companies and savings banks, must also provide explanations for all applicable accounting policies utilized.

The following are examples of additional accounts providing information beyond the basic annual report elements:

  • Profit & loss by job
  • Income by customer summary
  • Expenses by vendor detail
  • Income tax detail
  • Audit trail
  • Profit & loss budget vs. actual
  • A/R aging detail
  • Collections report
  • Unbilled costs by job
  • Sales by item detail
  • Sales by customer detai
  • Purchases by item detail
  • Job estimates vs. actuals detail