All of this means that a prospective reader of the report will have to analyze a large number of pages to reach to appropriate conclusion. The analysis of this report is to analyze the issues arising out of increase in the length of annual reports. The first section of the essay covers the major reasons of increase in length. The second section analyzes the impact of the larger size in terms of effectiveness of communication to appropriate stakeholders and the problems therein. We will then conclude with the possible solutions to the problems identified. Reasons for increase in the length of annual report One of the primary reasons for the increase in the length of the annual report is the imposition with regards to the representation of information in annual reports. The various statutory laws and the mandatory disclosure that the organizations have to make in their annual reports: Director’s reports including business review: This section which has been made mandatory by the Companies Act (CA 2006) shall cover the performance of the company including analysis of the significant developments happening in the company and the industry, analysis of key financial indicators, the trends in the industry, employee information, the macro and industry level environment factors along with social and community issues and initiatives. The operating and Financial Review: These guidelines published by the ASB’s reporting statement have made it voluntary for organizations to publish the operating and financial review. For example discussion on investment in intangible assets such as brands and liquidity is a very important requirement for organizations. The 2008 Annual report of Reed Elsevier and Great Portland Estate’s annual report such discussions in length. Corporate Governance disclosure: The Listing Rules, The Disclosure and Transparency Rules (DTR), The Combined Code and supporting guidance make it mandatory for a firm listed in UK to make statement of its application and compliance to the main principles of the Code. There are additional requirements imposed on by the Turnbull Guidance (on internal controls), the ‘FRC Guidance’ on audit committees. The organization is also required to ascertain its status as a going concern in the annual report through appropriate explanations. Some of the other additional items that are required as per various statutory laws in the annual reports include: Responsibility statement from the appropriate selected member Director’s liabilities for disclosures Information on gap between gender pay Greenhouse gas emissions Audit The Companies Act 2006 (CA 2006) has also resulted in additional business review requirements in the annual reports of the listed organizations. Material contracts: Lord Sainsbury in 2006 also suggested adding certain important material contracts of the firm with suppliers as well as buyers that have a significant impact on the business. Certain annual reports contain certain information that is not relevant to any of the stakeholders. In addition, organizations also indulge in reporting information that does not change from year to year in annual reports. Immaterial disclosures that make it difficult for the reader to identify and analyze relevant information also increase the length of annual report. Such type of information has been called ‘clutter’ by the ASB. Majority of the clutter in the annual
Introduction The last decade has seen significant changes in the way organizations report their operations in their annual reports. In addition, many regulatory changes have led to addition of certain mandatory sections in the annual report. At the same time, it is important that the report is able to effectively communicate with the relevant stakeholders…
People have realized the necessary aspect of trade and business and they incorporated which has brought rapid developments. In case of public sectors, one of the primary areas of concern is the ethical issues which must strive to meet the expectation of stakeholder by offering higher level of transparency (Silverman, 2008, p.74).
Investors, bankers and regulatory authorities read these reports to obtain information about the company for evaluation and investment purpose. At the minimum, the financial report must have the balance sheets, cash flow statements, profit and loss accounts, accounting policies and declarations, notes and annexures, director’s reports, operating and financial review and other such information necessary to understand the financial health of a company.
This rise in sales was accomplished in part by concentrating on holiday sales, seasonal sales and supplying the customer with what they wanted, and even more importantly, when they wanted it.
Concentrating on events such as Mother's Day and Valentine's Day helped boost cards and party ranges by 29%.
The overall performance of the firm in year 2003 was much more reliable, but still firm is doing its job satisfactorily. If we look at all three ratios for the year 2005, then it look quite satisfactory. But current ratio and acid test ratio are rising after year 2004 that is a very good sign.
Salads, Frozen, Biscuits and Puddings – operating across Chilled, Frozen and Bakery divisions – in both the retailer own brand (ROB) and branded arenas.
The main competitors of Northern Foods Plc are Nestle, Uniq and United Biscuits whereas Nestle has global presence in
Furthermore, the company endeavors to give products services that are environmental friendly. Moreover, the corporation is essential in developing technology required to enhance advancement and progress in many areas. Therefore, these
This part informs the user of the annual report on the qualifications and reliability of the accountants who compiled the data. This gives a sense of accurate data since they are considered to be of high standard. An auditor expresses his opinion on whether the
It is also the mission of the company to provide quality and unique services to its customer in all branches. The company has recorded an improvement in its financial performance for the two financial years. For example, the was an improvement
6 pages (1500 words)Essay
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