ANNUAL STATEMENT Meaning and
Definition
-
An annual statement refers to a comprehensive financial report prepared by an organization or business entity, summarizing its financial performance and condition over a one-year period. It is typically an official document released annually, and is a key component of the company's financial reporting. This statement provides a detailed account of the organization's activities, achievements, and financial transactions during the given year, presenting the financial information in a structured format.
The content of an annual statement typically includes an income statement, balance sheet, cash flow statement, and supplementary notes. These financial statements provide an overview of the company's revenue, expenses, assets, liabilities, and equity, along with relevant ratios and statistics. Additionally, the statement may include comparative information from the previous year, allowing for analysis of the organization's financial trends and performance over time.
The purpose of an annual statement is to provide shareholders, investors, creditors, and other stakeholders with a transparent and accurate representation of the company's financial health. It serves as a valuable tool for decision-making, as it helps assess profitability, solvency, liquidity, and overall financial stability. Furthermore, the annual statement is often required by regulatory bodies, such as government agencies or stock exchanges, ensuring compliance with financial reporting standards and regulations.
In summary, an annual statement is a comprehensive report that presents an organization's financial performance and condition over a one-year period. It plays a crucial role in providing a detailed analysis of a company's financial health to various stakeholders and regulatory bodies.
Etymology of ANNUAL STATEMENT
The word "annual" has a Latin origin, derived from the Latin word "annus" meaning "year". It entered the English language via Old French in the 14th century.
The word "statement" also originates from Latin. It comes from the Latin word "stare", meaning "to stand". In Latin, "statementum" referred to something that was set up or established. Over time, the meaning of the word evolved to convey a written or verbal account that is formally presented.
When combined, "annual statement" refers to a written or verbal account that is made on a yearly basis. It is commonly used to describe financial reports or summaries provided by companies, organizations, or individuals to provide an overview of their financial activities over the course of a year.
