Annual report
Learn what an annual report is, what it contains, who reads it, and how companies in Singapore report.
Published Monday 17 August 2026
Table of contents
Key takeaways
- An annual report is a document that summarises a company's financial performance and activities over the past year, typically including financial statements, a letter to shareholders, and management commentary.
- Annual reports contain key sections such as the balance sheet, profit and loss statement, cash flow statement, auditor's report, and notes to the financial statements.
- Investors, lenders, management, employees, and regulators all use annual reports to evaluate a company's financial health, make decisions, and hold leadership accountable.
- In Singapore, locally incorporated companies must lodge annual returns with the Accounting and Corporate Regulatory Authority (ACRA), while listed companies follow additional Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) requirements.
What is an annual report?
An annual report is a document that provides a comprehensive overview of a company's activities and financial performance during the previous financial year. It is an official record for shareholders, regulators, and other stakeholders.
Annual reports typically combine financial data with narrative content. The financial portion includes statements such as the balance sheet, profit and loss statement, and cash flow statement. The narrative portion offers context through letters from leadership, discussion of business strategies, and analysis of results.
Both listed companies and private businesses may produce annual reports, though the level of detail and regulatory requirements differ. For publicly listed companies, annual reports are a legal obligation and a key tool for transparency. Smaller or private companies may produce simpler versions to meet filing requirements or inform stakeholders.
What goes into an annual report?
Annual reports contain a mix of financial statements and narrative sections. The exact contents vary by company size and listing status, but most include several core components.
Common sections in an annual report include:
- Letter to shareholders: a message from the chairperson or chief executive officer summarising the year's highlights, challenges, and outlook
- Management discussion and analysis (MD&A): commentary from leadership explaining the financial results, business conditions, and strategic direction
- Financial statements: the balance sheet shows the company's financial position, including its assets, liabilities, and equity, at year end, the profit and loss statement shows revenue, expenses, and net profit or loss, and the cash flow statement shows how cash moved in and out of the business
- Notes to the financial statements: detailed explanations of accounting policies, assumptions, and line items
- Auditor's report: an independent auditor's opinion on whether the financial statements present a true and fair view
- Corporate governance statement: information on board structure, executive remuneration, and governance practices
Together, these sections give readers a full picture of where the company stands financially, how it earned or lost money, how much cash it has available, and how expenses compare to revenue. Before the statements are finalised, an accountant often prepares a trial balance to check that the underlying figures add up.
Why are annual reports important?
Annual reports matter because they create transparency and accountability. They give stakeholders the information needed to assess a company's health and hold leadership responsible for results.
Key reasons annual reports are valuable:
- Transparency: annual reports show how a company earns revenue, where it spends money, and what assets and liabilities it holds
- Decision-making: investors, lenders, and partners use the data to decide whether to invest, extend credit, or do business with the company
- Regulatory compliance: many jurisdictions require companies to file annual reports, ensuring businesses meet legal obligations
- Stakeholder communication: annual reports keep shareholders, employees, and the public informed about strategy, risks, and performance
Who uses an annual report?
Annual reports serve a wide range of readers, each with different interests in a company's performance.
Typical users include:
- Investors: shareholders and potential investors assess profitability, growth prospects, and risk
- Lenders: banks and creditors evaluate whether the company can repay loans
- Management: executives use the data to track progress, set goals, and communicate with the board
- Employees: staff may review the report to understand company stability and future direction
- Suppliers: vendors check financial health before extending trade credit
- Regulators: government bodies use annual reports to verify compliance with laws and standards
Types of annual reports
The format and depth of an annual report depend on a company's size, structure, and listing status.
Listed or public company reports are the most detailed. Publicly traded companies must meet strict disclosure rules set by securities regulators. Their reports include full audited financial statements, MD&A, governance disclosures, and often additional voluntary content such as sustainability reporting.
Private company reports are typically simpler. While private companies may still produce annual reports for shareholders or internal use, the content requirements are usually less extensive. In many jurisdictions, smaller private companies benefit from reduced filing obligations.
Mutual fund or investment fund reports are another category. These reports show fund performance, portfolio holdings, and expense ratios, helping investors evaluate their holdings.
Annual reports in Singapore
In Singapore, annual reporting requirements depend on whether a company is private or publicly listed.
All locally incorporated companies must lodge an annual return with the Accounting and Corporate Regulatory Authority (ACRA) within a set timeframe after the annual general meeting. The annual return confirms key company details and must be accompanied by financial statements for most companies, though small or dormant companies may qualify for exemptions.
Companies listed on the Singapore Exchange (SGX) face additional requirements. They must comply with the SGX Listing Rules and guidelines from the Monetary Authority of Singapore (MAS). Under the listing rules, an issuer must hold its annual general meeting within four months of the financial year end and issue its annual report to shareholders and SGX at least 14 days before that meeting. These reports must include audited financial statements, corporate governance disclosures, and information on directors' remuneration.
How to read an annual report
Reading an annual report can feel overwhelming at first, but a structured approach makes it manageable. Many small businesses generate the underlying financial reports from their accounting software, then work through the document in order.
A practical reading order:
- Begin with the letter to shareholders: this gives leadership's view of the year and sets context for the numbers
- Check the auditor's report: confirm the financial statements received an unqualified (clean) opinion, or note any concerns the auditor raised
- Review the profit and loss statement: see whether the company made a profit or loss and how revenue and expenses have changed
- Examine the balance sheet: understand what the company owns and owes at the reporting date
- Study the cash flow statement: track how cash moved in and out of the business from operations, investing, and financing
- Read the notes and MD&A: dig into the detail behind the numbers and understand management's explanations
Keep your financial reports clear with Xero
Accurate, up-to-date financial records are the foundation of any annual report. Xero brings your bookkeeping, invoicing, and reporting into one place, giving you a clear view of your finances throughout the year. When it comes time to prepare your annual report or share data with your accountant, the information you need is ready. Get one month free and see how Xero can simplify your financial management.
FAQs on annual reports
Here are answers to common questions about annual reports.
What is the difference between an annual report and financial statements?
Financial statements are a subset of the annual report. They include the balance sheet, profit and loss statement, and cash flow statement. An annual report adds narrative sections such as the letter to shareholders, MD&A, auditor's report, and governance disclosures.
Are annual reports mandatory for companies in Singapore?
Yes. All locally incorporated companies must lodge an annual return with ACRA. Listed companies must also publish a full annual report that meets SGX and MAS requirements.
Do small or private companies have to produce an annual report?
Private companies must file an annual return with ACRA, though the reporting requirements are less detailed than for listed companies. Some small companies qualify for exemptions from audit and certain disclosure obligations.
Who prepares a company's annual report?
Management is responsible for preparing the annual report, often with support from finance teams, accountants, and auditors. For listed companies, the board of directors oversees the process and approves the final document.
How often is an annual report published?
Annual reports are published once per year, after the company's financial year ends. Listed companies in Singapore must issue theirs at least 14 days before their annual general meeting, which must be held within four months of the financial year end.
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Disclaimer
This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.