Chapter 1, Problem 21CA

1.

To determine

Classify the various means that will enable Securities and Exchange Commission (SEC) to achieve the following mission:

• To protect their investors.
• Maintain an efficient market system.
• Facilitate capital formation.

2.

To determine

State the elements of communication process to be noted for an appropriate presentation of the annual report information of the company to their targeted users and provide information on the challenges faced by the company while preparing their annual reports with respect to the multiplicity of the users under consideration.

3.

To determine

Explain the importance of the information in the annual reports of a company other than the actual financial statements and the associated footnotes in providing information to the users of the same.

4.

To determine

Describe the merits and demerits of mentioning a well-defined corporate strategy in the annual report of a company.

5.

To determine

Describe the usefulness of a company annual report to fulfill the information needs of the following types of users:

• Shareholders
• Creditors
• Employees
• Customers
• Financial analyst

6.

To determine

Provide information on the decisions made by the company regarding the type of information to be included in their annual reports that can also prepare them against the risk of competitors using such reports to exploit the company.