Introduction

Truly the best way to begin getting a good grasp of how financial reports are organized and structured is simply by looking through them.

This chapter will examine annual reports, which follow a fairly common structure:

• Letter to Stockholders

• Financial Highlights

• Management’s Discussion and Analysis (MD&A)

• Financial Statements

• Notes to Consolidated Statements

• Report of Management’s Responsibilities

• Risk Factors

• Legal Proceedings

• Report of Independent Auditors

• Directors and Officers