essay

Topics: Financial statements, Annual report, Balance sheet Pages: 3 (817 words) Published: June 25, 2014
Members and Contributions:
Carpen, Angela= #1 & #2
Jarder, Adeline= #3 & #4
Quimanhan, Jasper= #6
Sollesta, Pfritzee= #5

1. Identify and discuss the basic factors of communication that must be considered in the presentation of this information.

The annual report must be clear to its users and its details must be brief and accurate. This is to avoid any confusion in the part of the users of the information especially because they couldn’t immediately raise their concerns and objections if they have any.

The language to be used in the report should also be considered. The preparer of the annual report must try to communicate to the users of the information in a common language which both parties could easily understand and agree.

The preparer should also consider the sequence of reporting. It may be through importance of information or logical ordering, etc.

2.  Discuss the communication problems a corporation faces in preparing the annual report that result from the diversity of the users being addressed.

There are a lot of information that an organization should report. Sometimes, to avoid having a dragging report and in their effort to remove unnecessary information, they at times reduce the information into generalizations which omits several important details that users need.

Different users have different needs so the preparer of the report try to cater them all. Some information may be useful to others while useless to some.

3.  Select two types of information found in an annual report, other than the financial statements and accompanying footnotes, and describe how they are helpful to the users of annual reports. Management's discussion and analysis of results.

Users of these reports may find them helpful in terms of collective bargaining agreement. It also provides understandable financial statements which are useful to a wide range of users in making important business economic...
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