Definition of Financial Highlight

Definition of Financial Highlight

In a financial report the section where a brief overview of an organization’s performance over the specified period of time is summoned up. It is a summary of the financial happenings of a company.

It is often provided in a public trading company’s financial report and its main purpose is to present a picture of financial effects and its implications on the company to the shareholders.

Brief Explanation of Financial Highlight

The general information contained in this highlight is for example

  • any latest acquisition made by the company and its impact on the profit and fixed asset plus major cash outflow.
  • Or it may include information related to any latest product launch and its effects.
  • It may also be about sales and expenses, revenues or earning per share, etc.
  • Sometimes it also includes the performance analysis of the company of a period of years.
  • Paragraphs to justify any negative variance in sales or profits
  • Revaluation or impairment of an asset over the year.
  • Any change in accounting method which leads to any impact on numbers.
  • Tax or litigation related highlights.

Nowadays Government organizations also have financial highlight section in their reports.

Its brief purpose is to give a quick overview of finance-related activities to its readers.

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