Financial reports are an integral part of any business. They are the basis of information on financial position and changes, the starting point for business analysis, and represent the financial effects of transactions and other events in the industry. In order to be credible, the reports must provide a true, fair and reliable view of assets, capital and liabilities, changes in financial position and profit and loss. In order for a company to be successful, it is crucial that it knows the financial statements and interprets the information contained therein in a good way. The main task of financial statements is to provide information on the financial position of companies that help customers make the right economic decisions. In order to meet the needs of all users, the financial statements must be understandable and reliable. It is important to analyze the information provided by the financial statements, and therefore the analysis of the financial statements is described as the process of applying various analytical tools and techniques by which the data is converted into useful information that are critical for management. Therefore, the first part of the paper explains the concept of annual financial statements and their basic elements under accounting standards, while the second part of the paper gives an example from the practice of the annual financial statements of the company Boso d.o.o. for 2018.