The paper "Objectives of Annual Reporting" is a great example of a finance and accounting essay. According to (Ernst & Young 2008, p. 2), annual reporting has a number of objectives. Reporting is a primary mechanism that is used to impart unbiased knowledge or information regarding the organization through an informative, structured as well as economical manner. Reporting is an efficient document for accountability. Annual reports are stewardship of the company by the management and directors over the past year (Ernst & Young 2008, p. 2). Annual reports help in educating and informing the shareholders, this can be the present shareholders as well as the potential shareholders.
It is a legal requirement to provide annual reports of the organization. Annual reports help in outlining the strategy as well as the future direction of the organization. Annual reports are very important since they help to outline the company’ s objectives. Annual reports help in reporting performance when the organization is under review (Ernst & Young 2008, p. 2). The annual report's key focus should be the company’ s financial position as well as its financial performance reflecting its financial function as well as purpose.
Reports help in explaining matters of an environmental nature along with matters important to the social obligation of the organization. Annual reports contain information that is pertinent to the shareholders in their position as owners this includes charitable donations as well as political donations (Ernst & Young 2008, p. 2). Concisely, the main objective of annual reports is to ensure accountability, especially to the shareholders. Considering that information is presented in a manner that is very complex, it has prompted the emergence of other reporting types, this includes annual reviews.
The main objective of the annual review is to bridge the gap between shareholders expect to get from annual reports as well as statutory requirements. Annual report reviews should have the following characteristics: Consistent From one year to another annual reports presented to the shareholders ought to be consistent so that its shareholders can make comparisons from the various reports that have been presented before.
Ernst & Young 2008, Reporting to shareholders: A good practice guide,
Goldstein 2005 ‘Unleashing the power of the annual report at DTCC’: Report information from ProQuest. Viewed 24 November 2013, >htt://ezproxy.lib.uts.au/login?url=http://search.proquest.com/docview/203598458?accountid=17095>.
Zekany, K & Elsass, A 2004, ‘Great Graphics: How to illustrate financial information the right way’: Strategic Finance. Vol 85. No. 9 PP.52-55.