Research Paper: A Novice’s Guide to Reading an Annual Report
Go to the following website:
Read ALL of the sections of this article, including:
· What is an annual report to shareholders?
· What are the purposes and objectives for the Annual Report to Shareholders?
· How should the annual report be read? For what, precisely, should the reader search?
· Why does the annual report include an Opening Letter from the Chairman or CEO to shareholders?
· What is the annual report Operating Review?
· Why does the annual report present “Market Strategy and Market Conditions?”
· What is the purpose of the Annual Report Management Discussion and Analysis?
· Which Financial Statements and Notes always appear in the Annual Report?
· Financial statement highlights
· Income statement
· Balance sheet
· Statement of changes in financial Position (SCFP, or Cash flow statement)
· Retained earnings statement
· 10–20-year economic history
· Notes on financial statements
· What is the required Auditor’s Statement and why is it presented in the Annual Report?
· How is corporate governance presented? How are company directors, and officers identified?
· What are the US Form 10-K, UK Form AR01, Canadian AIF?
Next, use a search engine to research how to read an annual report. Using your readings as a guide, write a guide to a novice investor entitled: “A Novice’s Guide to Reading an Annual Report.” Your guide must be at least 1000 words (following current APA guidelines) in a format and in language appropriate for a novice investor.