Final answer:
Narrative sections of an annual report, like the Chairman's letter or Management Discussion & Analysis, may not require tagging as they provide subjective analysis and forward-looking information that is not easily quantifiable.
Step-by-step explanation:
In financial reporting, particularly with public companies, the annual report is key for investors, analysts, and regulators to understand a company's financial health and operational performance. One aspect of modern financial reporting is the use of eXtensible Business Reporting Language (XBRL), which requires certain portions of these reports to be tagged with machine-readable tags. While the main financial statements and notes are typically required to be tagged, there is usually a portion that is not required to be subjected to this process. The narrative sections, such as the Chairman's letter or Management Discussion & Analysis (MD&A), may not require tagging because they contain more subjective analysis and forward-looking statements that are not as easily quantifiable or styled into data tags.