Each year about 800 NAIC members evaluate more than 800 company reports. They use a rating form developed by NAIC members that emphasizes the concerns of long-term investors. Judges are asked to read the reports from cover to cover. They award points for various types of content that companies include in their annual reports to shareholders. Among the areas that are covered are financial highlights, historical financial information, management's discussions, and other narrative comments.
Judges also report on design and readability.
According to Kenneth Janke , president and CEO of the NAIC Board of Trustees, judging the reports can be a service to other investors because it helps improve investment information. It is also a service to corporations that try to better serve the needs of the individual investor. Each judge receives four annual reports, evaluation forms, return envelopes, and a complete set of instructions, The instructions describe how to find the information that is addressed in the evaluation forms. Judges receive the packets in early June and must return the completed evaluation forms to NAIC headquarters by August 15. Send the information via regular mail or e-mail.