ACCT 1A Chapter Notes - Chapter 11: Financial Statement, Cash Flow
Document Summary
Many companies, follow these press releases with a wecast conference call at which senior managers present the results and then answers questions from analyssts about the results. Market reacts not to the amount of earnings, but to the difference between actual earnings and expected earnings. For privately held companies, annual reports are relatively simple documents photocopied on white paper, they include the following: 1) basic financial statements: earnings, financial, equity, cash flow. 3) report of independent accounts (auditor"s opinion) The annual report of public companies are normally split between two sections. 1) the non financial section usually includes a letter to shareholders from the chair-person and ceo, along with descriptions of the company"s management philosophy, products, successes (failures) and prospects and challenges. 2) the financial section, includes the core of the report and principal components such as: 2) management"s discussion and analysis covering financial condition and results of operations.
