Annual report: an insight into the company’s performance
An annual report is not only a legal requirement for many companies, but also an opportunity to provide stakeholders – be they investors, employees or customers – with insights into the company’s performance, strategy and prospects. This comprehensive document typically includes financial statements, board reports, and often information on the company’s social and environmental impact.
An effective annual report is transparent, authentic and conveys a clear message about the company’s way forward. While the financial aspects of the report take centre stage, the narratives about challenges, successes and strategies also provide a valuable perspective on the company’s operations and culture.
In Austria, as in many other countries, an annual report is a document that companies typically publish at the end of a financial year. It contains a comprehensive account of the company’s financial and business activities during the previous year. Here are some key components and aspects that are relevant in relation to annual reports of companies in Austria:
- Annual report:
- Overview of the company: Description of business activities, mission, vision, and strategic direction.
- Business development: Turnover, profits and significant developments in the past financial year.
- Market and competitive analysis: Overview of the market and the company’s position in the competitive environment.
- Risk report: Presentation of potential risks and their management.
- Financial report:
- Balance sheet: a statement of assets, liabilities and equity.
- Profit and loss account (P&L): Overview of income and expenses.
- Notes: Additional information on the figures in the balance sheet and income statement.
- Management report: Analysis of the company’s financial situation.
- Sustainability report (if available):
- Information on the social, environmental and economic impact of the company’s business activities.
Legal requirements
- Austrian Commercial Code (UGB): In Austria, the UGB regulates many aspects related to the annual report. Depending on the size of the company and the type of company, there are different requirements regarding the level of detail and the audit of the annual report.
- International accounting: Larger companies, especially those listed on the stock exchange, often also have to comply with international accounting standards (e.g. IFRS).
Publication
- Disclosure: Companies are required to disclose their annual reports to ensure transparency towards investors, customers and other stakeholders.
- Electronic Federal Gazette: In Austria, annual reports can be viewed in the company register, which is accessible online via the Company Service Portal (USP) or via various providers of business information.
Significance and purpose
- Transparency and provision of information: Stakeholders such as investors, customers, employees and the public are given an insight into the financial and strategic situation of the company through the annual report.
- Confidence-building: A well-prepared annual report can strengthen the confidence of investors and customers.
- Business decisions: The annual report also serves as a tool for management to analyse business performance and plan future strategies.
Language and design
- In Austria, annual reports are usually written in German, but can also include an English version to appeal to international stakeholders.
- The design of the report should be professional and readable to ensure efficient communication with stakeholders.
Annual reports are complex documents that should provide an accurate picture of a company’s situation. Therefore, preparing and analysing them correctly is crucial to understanding the company’s business performance and financial stability.