The various categories of users mentioned above lead to a real problem in preparing the report. Any annual report is mainly addressed to the members of the board, but also to other shareholders and business partners, to any financial analyst, employees, and, of course, the competition and journalists. This is one of the reasons many managers rather present only the very simplified information, as required by law, and nothing more. Of course, as a downside, companies are oftentimes accused that they use different communication and readability tools in order to draw the attention on the good parts and minimize, on the other hand, the bad ones. Indeed, the thematic structure of a report can be a very important element: it can emphasize some parts while leaving the others partially undeveloped or simply in the shadow. Still, as different categories of users look for different facts, the danger of neglecting some points of view is real.
Although many think of the annual report as a financial one, this is only one of the points that need to be addressed in the statement. ...Show more