The importance of the annual report lies in that it can not only help the internal managers of the company to fully understand the operation and financial status of the company, but also provide investors and other stakeholders with information about the company's financial status and operation, so as to decide their decisions on investing in the company and purchasing financial instruments such as stocks and bonds.
In order to prepare the annual report accurately and comprehensively, the company needs to abide by the financial reporting standards and financial accounting principles. In addition, in order to ensure the accuracy of the annual report, the company needs to adopt appropriate accounting policies and estimation methods, carefully examine and check the financial data, and explain in detail the composition and calculation methods of various financial indicators in the report, so as to ensure that investors and other stakeholders can accurately understand the financial data.