The management report is a document to be prepared by the management for annual financial statements. It is not part of the annual financial statements, but an independent section that represents an additional reporting instrument for the reader of financial statements. In the management report, the manager should reflect the situation of the company to the outside world. Accordingly, its main purpose is to provide information. The management report discusses the business and general conditions, the results of operations, the net assets position, the financial position and the future opportunities and risks relating to the company in question. In Germany, a management report is prepared by medium-sized and large corporations as well as by GmbH & Co. KG are required to prepare it.
