We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

To what extent are a company's annual report and accounts useful in understanding and analysing its market, productive and fin - Essay Example

Comments (0) Cite this document
Summary
Company’s Annual Reports and Accounts To what extent are a company’s annual report and accounts useful in understanding and analysing its market, productive and financial performance? Discuss using an extended example. For every public or private company, it is mandatory by law to maintain annual reports and accounts…
Download full paperFile format: .doc, available for editing
Polish This Essay98% of users find it useful
To what extent are a companys annual report and accounts useful in understanding and analysing its market, productive and fin
Read TextPreview

Extract of sample
"To what extent are a company's annual report and accounts useful in understanding and analysing its market, productive and fin"

Download file to see previous pages This paper discusses the usefulness of annual reports in understanding a company’s market, production and financial performances. Management perspective A company needs to strive to remain in competition within the framework of several internal and external factors like political, economical and social structures. The owners delegate most of their responsibilities to the senior management thus elevating the power of the management to decide a company’s objectives and to design policies for the purpose of realisation of those objectives. It is only with the guidance obtained by studying annual reports and accounts, the management can make operational and strategic reconfigurations of resources for the purpose of consolidating the position of the company in the competitive market. The independent controlling power of the management separate from the owner ensures that the sole objective of profit optimization cannot be realised since the company’s policies and behaviours are also controlled by various other factors. Technically, profit can be maximized if the organisation can detect “marginal cost, marginal revenues and production output up to a point where marginal cost of the last unit produced just equates to the marginal revenue received from its sale.” (Haslam, et al, 2000, p.4) In fact, a set of rules and regulations of accounting helps the management to identify the production cost and sale price of each unit to determine the company’s performance in the fields of production and sales. The annual reports reflect the performance patterns of a company from one period to the other (Haslam, et al, 2000, pp.4-5). Users of accounts Annual reports and accounts can be defined as means of “communication of information about the financial position and performance of an entity to interested parties.” (Laidler & Donaghy, 1998, p.1) In any company, every year balance sheet and profit and loss account are published in a document form along with other financial statements, together known as annual reports and accounts. These accounts are useful for both internal personnel like directors and managers, and also external people like investors, creditors, customers etc. Investors are those people who invest their money by purchasing shares of a company thereby taking risks in the hope of getting dividends in due time. For this purpose they need to know the management efficiency of the company in order to determine whether their investments will be profitable. Employees and trade unions study the annual reports to become aware of the financial stability of their company to decide whether they will be continued to be employed at appropriate levels of remuneration. The annual reports are also important for the lenders like banks and individuals who lend money to a company. They need to be aware whether the company will be able to repay their money together with their interest in due time. Similarly, for creditors and suppliers, the annual reports give them the information whether they will be getting their payment at the right time. Then there are customers like other organisations who purchase goods from the company; they need to know the financial stability of the company to remain satisfied that goods and services will be ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“To what extent are a company's annual report and accounts useful in Essay”, n.d.)
Retrieved from https://studentshare.org/management/1465683-to-what-extent-are-a-companyyies-annual-report-and
(To What Extent Are a company'S Annual Report and Accounts Useful in Essay)
https://studentshare.org/management/1465683-to-what-extent-are-a-companyyies-annual-report-and.
“To What Extent Are a company'S Annual Report and Accounts Useful in Essay”, n.d. https://studentshare.org/management/1465683-to-what-extent-are-a-companyyies-annual-report-and.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Usefulness of a companys annual report and accounts in understanding and analysing its market, productive and financial performance
An annual report is an article prepared yearly by companies premeditated to depict fair and spot on view of the company’s annual recital. It also gives an audited statement of finances primed in accordance to the company’s regulatory requirements and edict.
5 Pages(1250 words)Essay
To what extent are a company's annual report and accounts useful in understanding and analysing its market, productive and fi
It is necessary for a businessman to be satisfied that the accounts are written up correctly and with mathematical accuracy since they are scrutinized by external auditors for the assessment of government taxes. From the final reports and accounts, a businessman can get a picture of the profit or loss position of his entity and can make decisions on further investments for the purpose of progress and development of the business.
6 Pages(1500 words)Essay
Importance of Annual Reports and Accounts
According to the there are different reasons of why enterprises give importance to annual reports. Some of the reasons include clean market analysis, comparative financial assessment and productivity analysis which is no other possible if there are no annual reports to compare. It has been that in markets where there is a major population of investors and share holders then enterprises come out regularly with the activity of reporting.
5 Pages(1250 words)Essay
To What Extent Are a Company's Annual Report and Accounts
This paper is aimed at focusing the importance of annual reports and accounts with respect to analyzing the overall company’s performance. The basic tool to do this job is value added framework of accounting which does not only helps in determining the performance level of the company under consideration but it also provides the accountants and financial professionals with a benchmark in the form of a calculated Value added for one company operating in the industry which is then used to analyze the performance of the overall industry.
5 Pages(1250 words)Essay
Discuss using an extended example how annual report and accounts can be used to analyse and
The external parties like stakeholders, creditors, government etc can get a fair idea about the overall functioning of the business from these financial statements. The public companies present a summarised
4 Pages(1000 words)Essay
Annual report
Furthermore, the company endeavors to give products services that are environmental friendly. Moreover, the corporation is essential in developing technology required to enhance advancement and progress in many areas. Therefore, these
2 Pages(500 words)Essay
Companys annual report and accounts
Employees are treated here as colleagues, whereas the customers are the heart of the company. The Motive of the company is to satisfy the customers with best shopping
6 Pages(1500 words)Assignment
The narrative section of a companys annual report provides users with useful information on the companys performance and prospects
This have always included the director’s report about the organization, the chairman’s report or rather statement and corporate governance releases (ACCA & Deloitte, 2010). For the quality of the narrative reports to be increased, companies have included
5 Pages(1250 words)Essay
Understanding the Annual Report and 10-K
However, the form 10-K is very much different from the Glossy-Annual report send by the company to its shareholders. The 10-K includes information of the company such as history, equity, executive compensation, subsidiaries and audited financial
2 Pages(500 words)Essay
Understanding Company Accounts and reports
In addition, it help the organizations becomes more profitable, more productive and more sustainable. By adopting the environmental accounting and reporting
12 Pages(3000 words)Essay
Let us find you another Essay on topic To what extent are a company's annual report and accounts useful in understanding and analysing its market, productive and fin for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us