Business – 10.4 Finance and accounting strategy – Use of accounting data | e-Consult
10.4 Finance and accounting strategy – Use of accounting data (1 questions)
Login to see all questions.
Click on a question to view the answer
The main sections of an annual report typically include:
- Chairman’s/CEO’s Statement – Provides strategic direction and performance highlights. Useful to shareholders for assessing future growth prospects and to employees for understanding organisational priorities.
- Directors’ Report – Summarises corporate governance, risk management and future outlook. Useful to creditors for evaluating governance risk and to regulators for compliance monitoring.
- Financial Statements (Balance Sheet, Income Statement, Cash Flow Statement, Statement of Changes in Equity) – Show the company’s financial position and performance. Essential for shareholders to gauge profitability and for lenders to assess solvency.
- Notes to the Accounts – Provide detailed explanations of accounting policies, contingencies and segment information. Helpful to analysts for detailed financial analysis and to tax authorities for verification of tax positions.
- Corporate Social Responsibility (CSR) / Sustainability Report – Details environmental and social initiatives. Valuable to customers who prefer ethical suppliers and to NGOs monitoring corporate impact.
- Auditor’s Report – Gives an independent opinion on the fairness of the financial statements. Important to investors for confidence in the numbers and to regulators for oversight.