Management report (or Annual Report) is a report on the company’s activities for the financial year, presented in the context of the overall development strategy, considering macroeconomic and market trends.
It contains financial and non-financial information that characterizes the position and prospects of the entity’s development and discloses the main risks and uncertainties of its activities. It presents and interprets the company’s strategy, business model, approaches to risk management, market position, plans, projects, financial and non-financial performance and achievements.
Annual reports are widely used by companies that want to present information about the business and its prospects to investors, partners and regulators. It is mandatory for public companies whose shares are listed on stock exchanges.
Medium and large entities must submit a Management report per Part 7 of Article 11 of the Law of Ukraine No. 996-XIV On Accounting and Financial Reporting in Ukraine dated July 16, 1999. Only micro and small entities are exempted from submitting a management report.
A management report is submitted together with financial statements and consolidated financial statements. If the company submits consolidated financial statements, a consolidated management report is also submitted.
Elements of the Management report:
