What is 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.