Download these 13 Free Sample Annual Financial Report Templates to help you prepare your own Financial report.

A Financial Statement records and outlines the financial activities of a business, an individual, or any entity. Financial statements are meant to present the financial information of the entity in question as clearly and concisely as possible for both the entity and the users, who are the shareholders. An annual financial report is presented to the shareholders at the annual meeting, defining the annual financial progress of the company or organization. The key features or elements that are to be included in the annual financial report to draw according to the International Financial Reporting Standards (IFRS) and International Auditing Standards (IAS), are as follows.

It is a custom to start the annual report with a letter from the chairman. The letter not only gives a brief summary of prior performance but also describes the new strategies or plans that are made by the management to follow the path of success.

Business Profile

This is the next basic or vital element of a financial report, it outlines and defines the purpose of the business. Describing in detail all the products and services the business deals in. This is important to give an overview of the business the report is dealing with.

Management’s Analysis

In this section, the report gives a brief introduction to the management of the company and discusses the company’s operations in detail by giving comparatives with the prior year’s performance reports. To make this easily understandable to anyone who wishes to read the report, management often uses graphs and charts and cites data to explain the performances. Any plans or future prospects of the company’s progress are also discussed.

Financial Statements:

Income Statement

The income statement also known as the statement of profit and loss shows that either the company has gained a profit over the previous year or has suffered a loss. The first part of the Income statement shows the gross profit by subtracting the cost of goods sold from the sales or revenue an organization has managed to earn. The next portion subtracts all the expenses that the company had bear from the loss profit to show profit or loss before tax. In the end, after deducting the tax expenses the final profit or loss is attained.

Balance Sheet

A balance sheet, also known as a statement of comprehensive income, shows a detailed view of all the assets and liabilities that the company has at the year-end. The balance sheet has two portions, each defining and showing the assets and the liabilities. Assets include the property, plant and equipment, cash, debtors, bank, inventory, etc. While the liabilities include creditors, bank overdrafts, any payables, etc. Another section in the liability portion is equity, which is an asset less liabilities. At the end of the day, both the portions, assets and liabilities, must complement each other or they must be balanced.

Statement of Cash Flows

This part shows the inflow and the outflow of cash and cash equivalents. This statement has three major portions, one describing the operating activities, the second the investing activities, and the third one showing the financial activities of the organization.