The annual report is a comprehensive report providing useful financial and non-financial information to shareholders and interested parties. It contains the company’s activities and financial performance for the financial year. Annual reports are prepared at the end of a fiscal year for external users to gain financial information about the inner workings of the company and what management plans to do in the future.

a) Financial statements are the main component in an annual report that indicates the financial information of a company. What are the main elements of a financial statement? Discuss the functions of each of the elements of a financial statement.

b) Auditor’s report is one of the elements in an annual report. Discuss the functions of the auditor’s report in an annual report.

c) What other qualitative information that you will find in an annual report? Discuss the objectives of the qualitative information that you have identified.