An annual report is an official document that certain businesses have to periodically produce and publish.
Its purpose is to enable the authorities to assess the status of a business’s economic activities during a given accounting period in a clear, precise and accurate form. The following, in particular, have to produce an annual report in English:
- companies listed on the Stock Exchange;
- companies with widely traded financial instruments;
- banks and regulated financial institutions;
- companies that produce consolidated financial statements or are consolidated subsidiaries.
What is an annual report?
An annual report provides an accurate description of a business’s balance sheets and financial statements. It consists of three sections, each of which plays a different role:
- balance sheet;
- income statement;
The balance sheet gives a precise picture of a company’s financial situation. The balance sheet assets include all movable and immovable property belonging to the business, as well as credit with third parties and liquid assets held by the business when the annual report is prepared. The liabilities, on the other hand, include debts incurred by the business and not yet paid. The difference between the two – which may be positive or negative – constitutes the statement of net assets.
The income statement, then, is an extremely detailed list of the costs sustained by the business and the revenues obtained from its activities. The difference between costs and revenues gives us the operating profit (if the difference is a positive figure) or the operating loss (if the difference is a negative figure).
The notes, finally, contain all additional information necessary for better understanding and analysis of the data provided in the first two sections.
How do you translate an annual report into English?
Annual reports must be translated into English using appropriate and up-to-date terms, since legislation is subject to periodic changes. It is advisable to use British English.
For these reasons, it is essential to ensure that your annual report is translated into English by a professional specialising in financial translation. You can therefore rest assured that all technical terms are used correctly and do not lead to confusion or, worse still, legal problems.
When and why should you ask for a financial translation?
You should ask for a financial translation whenever you need to translate a financial document relating to your business activities.
The language of finance is a technical language. Consequently, its terminology is not commonly used and cannot be correctly translated without appropriate training.
Given the official nature of financial documents like annual reports, it is essential to order and submit professional translations to avoid both legal issues and the economic implications of potential fines.
For over 20 years, we at Eurotrad have been managing a team of professionals specialising in various business sectors, including finance. Send us the document you need to translate and ask for a free quotation now.