Discuss the Implications of the Increaing Length of Annual Reports Essay

Discuss the Implications of the Increaing duration of Annual Reports - Essay ExampleIn this regard, many independent and regulatory authorities have well-tried to protect the investors and shareholders interest from managements biases by taking major steps like corporate governance and business relationship policies. Publication of yearly hides is one the basic responsibilities. With tightening policies from regulatory authorities, the managements are required to disclose design of data other than fiscal statement. This paper will attempt to present the purposes and increasing length of yearbook report and its implications (Stittle, 2003, p.143). Purposes and Importance of Annual Report Annual report is primarily associated the disclosure of the financial report of a corporate which is important for the users like prospective investor, existing shareholders and creditor for making economical decisions. Financial information is highly required as it shows the financial health of the organisation like financial risk, stability, volatility, assets, liabilities etc (Valencia College, n.d.). However, merely disclosing the financial information does not serve the purposes for protecting shareholders interest by offering sufficient level of transparency. ... The annual report also discloses other necessary information which is highly required for ensuring the biased free information. For example, the play along also discloses accounting policies, footnotes which act as empirical studies for the stakeholders. Form the companies perspective, annual reports are also apply for market signalling by disclosing a number of voluntary news and recent developments. Moreover, the annual reports are brisk in the simplest way so that a person with basic knowledge of economics is able to agnize the internal information and activities. The companies are obligated to ensure that each of its stakeholders is able to access the annual reports and hence, in public listed comp anies are responsible for publishing its annual reports through corporate websites, economic journals and news papers, and subscriptions (Vause, 2009, p.9). Increasing distance of Annual Report and its Implications To make the annual reports more relevant with enhanced disclosure has become a challenge for both the regulators and firms. On one hand, regulatory authorities require that the companies annual reports must be understood by ordinary shareholders and investors on the other hand, they are required to include complete and downright disclosures. The recent financial crisis of 2007-2010 has marked the importance of financial disclosures. The international and independent organisations like FRC, OECD, IASB and FASB require long ranges of information as mandatory disclosure. The IFRS and US GAAP are two major financial report frameworks that recommend upon the accounting standards and disclosures in the annual report. Their requirements of disclosure have been constantly inc reased for better transparency and monitoring the activity of the