Corporate Annual Reports

Public corporations issue annual reports summarizing their operating activities for the past year and plans for the future. Such annual reports include the financial statements and the accompanying notes. In addition, annual reports normally include the following sections: Management discussion and analysis Report on internal control Report on fairness of the financial statements 1.

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Unusual Items on the Income Statement

Generally accepted accounting principles require that unusual items be reported sepa­rately on the income statement. This is because such items do not occur frequently and are typically unrelated to current operations. Without separate reporting of these items, users of the financial statements might be misled about current and future operations. Unusual items on the

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