Annual Accounting Report - Assignment Example

Examples of basic annual accounting records include; Trading profit and loss accounts, balance sheets, general corporate information, cash flow statement, accounting policies, director report, auditor reports, and financial reviews. Other relevant financial information required by stakeholders includes; corporate social responsibility information, that illustrates social and environmentally sensitive activities.

The details shown in the annual accounting reports are utilized by investors in determining the present financial position of the company, in relation to the future financial and operation direction. In the United States of America, a relatively complex financial report referred to as Form 10-K is legally filed at the U. S. Securities and Exchange Commission (William, 2011). The authority and responsibilities associated with the preparation of the annual accounting reports and associated financial statements= lie with the company directors. The directors choose the most appropriate accounting approaches and then use them consistently. The applicable accounting procedures must adhere to professionally accepted accounting principles (Richard, 2013).