Directors' Report

Formal

A statement made by the Board Of Directors of a company to its shareholders (and other users of information). Its purpose is to outline the future prospects for the business, definition of strategies, background to key numbers, and to provide segmental analysis, historic business and departmental commentaries.

Real-world Example

In its annual filing, a company's Directors' Report explains the year's performance, principal risks, and outlook in plain language, alongside the more technical financial statements.