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Discuss the Implications of the Increaing Length of Annual Reports - Essay Example
Author : trevavonrueden
Finance & Accounting
Pages 4 (1004 words)
Discuss the implications of the increasing length of annual reports Table of Contents Introduction 3 Purposes and Importance of Annual Report 3 Increasing Length of Annual Report and its Implications 4 Conclusion and Recommendations 6 Reference 7 Bibliography 8 Introduction Since last five decades, there has been a massive change in the global business environment…
In this regard, many independent and regulatory authorities have tried to protect the investors’ and shareholders’ interest from managements’ biases by taking major steps like corporate governance and accounting policies. Publication of annual reports is one the basic responsibilities. With tightening policies from regulatory authorities, the managements are required to disclose number of information other than financial statement. This paper will attempt to present the purposes and increasing length of annual report and its implications (Stittle, 2003, p.143). Purposes and Importance of Annual Report Annual report is primarily associated the disclosure of the financial report of a corporate which is important for the users like prospective investor, existing shareholders and creditor for making economical decisions. Financial information is highly required as it shows the financial health of the organisation like financial risk, stability, volatility, assets, liabilities etc (Valencia College, n.d.). However, merely disclosing the financial information does not serve the purposes for protecting shareholders’ interest by offering sufficient level of transparency. ...