Financial Reporting And A Corporate Annual Report

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For organizations, it is essential to collect information over a specific period of time and present the information in a structured way towards intended readers. The collection of information can be in the form of financial reporting, project reports and annual reports. Businesses sets goals at the beginning of a fiscal year, and when it comes to the end of the year, investors of the company would like to know how well did the company perform and what financial position is the company at. They are able to find the information in annual reports published by organizations to the general public. Likewise, organizations are required by law to prepare an annual report to present crucial information to shareholders, and allow regulatory agencies to access updated data. It is expected that neutrality should be the characteristic throughout the report. However, in narrative texts companies might create an image that is perceived to be optimistic and positive, neglecting poor performances.
A corporate annual reports discloses information of a company’s performance throughout the preceding year. It is prepared by the directors of a company with the intention to provide shareholders and other interested potential investors with information on the company’s activities and financial performance. It may include the company’s mission statement and overview of what kind of businesses the company is doing currently, as well as forecast of what will be done in the future. Many studies
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