Financial statement

Periodic financial reports include the statements of Income and Expenses (or Profit and Loss), the Changes in Cash Position, and the Balance Sheet. Subsidiary reports may detail the financial aspects of profit or cost centers, special investments, or acquisitions, unconsolidated operations, divestitures, and exceptional gains, losses or liabilities. Reports may be annotated for each line item, or annotated on an exceptional basis. The financial statement may be certified by independent auditors quarterly, or only at the time of the Annual Report to Stockholders. The Annual Report, in addition to containing the financial Statements for the preceeding year, also includes an operating report on marketing performance and prospects, on research and development, on production and other technical matters, on distribution activities, on foreign business and on community public affairs involvement and charity. The Annual Report has become an excercise in packaging an organization to make it appear in the best light and is frequently the production of the Public Relations department or an advertising agency.