Wrap report definition
/What is a Wrap Report?
A wrap report is a low-cost annual report, which is a public company's Form 10-K with an annual report cover wrapped around it. A small amount of additional commentary may be added by management. The cost is kept low by avoiding the use of graphics or color, and by minimizing the page count. Larger entities are usually willing to allocate substantially more money to the production of a more lavish annual report.
Advantages of Issuing a Wrap Report
There are several advantages to issuing a wrap report, which are as follows:
Lower cost. A wrap report is usually issued when a business does not want to spend an excessive amount on an annual report, and especially when little attention is being given to investor relations. This can be an ideal solution for a smaller public company that is not overly concerned with investor relations.
Faster close. By avoiding the preparation of an elaborate annual report, a public company can complete its closing process substantially quicker. This is an advantage when the accounting staff is small, and does not have the resources to spend on report preparation.