Annual report definition (noun)

1. An annual report is a detailed report, produced by a corporation, that outlines its finances and operations for the past year so that shareholders and other entities can get an insight into the company’s condition. Public companies are required by law to generate an annual report.

   Public companies must also disclose information about their executives, including compensation levels periodically. If they fail to do so, they may face penalties from the Securities and Exchange Commission or even criminal charges. The requirement is important because it helps investors make informed decisions about where to invest their money. It also ensures that public companies are following all applicable laws and regulations.