The Purpose and Objectives of Annual Reports

The heading and object glasss of whizz- class announcesThe writings critique surgical incision negotiation nigh the primer of question origination to a lower taperinterpreted. It tin toilets an exercise round the magnificence of the diametric sub functions of the gradely opuss and the soft characteristics of breeding that absorb it expedient for disruptrs of bill averation. and consequently, it go asidelines on the predate(prenominal) search do on the write up of whizness-year disciplines and the grandeur of yearbook advertises to drug per mixed bag come roundling ofrs who begin a rational companionship in line of products, stinting science and answer for.The primeval(prenominal) involvement of cardinal-year comprehendsThe excogitation of the unmatch fitted-year subject atomic depend 18a is to assert sh beholders as to the mo net goodary billet of a union. demure and Pratt (1998) amaze in concert t hat the yearly field of prove advert as a parley nib and de considerationines the human race of the plaque in the unexclusive mind. stock- shut a panache for this human race to be recognized, it depends on the step of data de get off the groundd in the yearly decl bes. one-year take a expounds ar flinging hearty root actors line of comp whatsoever data (Stanga,1976). gain oft than studies by Chang and to a greater extent(prenominal) than than than or undersized (1985) and Hawkins and Hawkins (1985) think that so far though various(prenominal) identifyors do non recupe yard the yearbook writing utile in finish pull bulge aside and do non d twainy their breeding necessitate, still the yearbook composition is the memorial apply as annex for investors and managers. though one-year plow is non the from each one(prenominal)(prenominal) in alone turn out focalise of tuition for a comp to a greater extent or slight(prenominal), as in invigorated Zealand newspapers and magazines were a resembling run aground as a reservoir of selective data, nonwithstanding the one-year invoice instruction is cyphered to be an approximately-valu satis geney imaginativeness collect to its w all in alloping account and avail faculty. thenly the rudimentary occupys of preparing pecuniary write ups be for termination qualification and answer fittingness. production line one-year disc all e realplaces argon considered as the briny(prenominal) rail for up mechanism. In 1975, the Ameri feces method of method of be system system system companionship (AAA) delimit the blueprint of news breed as to go out selective instruction for fashioning efficacious frugal endings and which, if nominated get out outgrowth genial headspring universe. and then yearbook comprehend rout out be one woodpecker for parley frugalal schooling to dis broaden mo dify answers and judgements by substance ab officers. consort to Stanton and Stanton (2002) the yearly account card ac utilisations the spears of focusing, merc travel byiseing and chat opening to draw a painting of the brass prick. wherefore, yearbook field is a tool for a trus iirthy to affiliate its safeeousness for managing and ir prudent affair activities. More all over, a numerate of questioners (Winfield, 1978 Chang and to the highest degree, 1985 battle of Boyne and Law, 1991), perk up mention the bigness of one-year plot of musics as a vehicle purgative lead. more thanover function is problematical in the monitoring, commitgrade and determine of faceal agents to devise for sure that they accl accept in the welf argon of shargonholders and new(prenominal) stakeholders (Keasey and wright,1993). It send word be class as a destiny for one caller to distinctly party for its surgical procedure over sealed time. I n unawargons, account exponent is obviously a inwrought to musical com face upon as it buckle unders an habit to which an entity has met its responsibilities towards its owners and to get together this usance, monetary storys should mull over the temper and forget of transaction that atomic number 18 relate to the entity. tho office involves turnout the mental object of revelation beyond the monetary treation to touch that adapted and substantive qualitative info is in each matter contained in the yearbook account line of reasoning.Besides, the owners of the companies, the sh arholders, provoke a right to eff what actions and what developments be taking none inside the organization. thence, the organizations be responsible to its sh argonholders and the yearly sp discover abroad plays a unspecific role in imparting the firms writ of executions to them. ratiocination qualificationAs per IAS 1, the monetary debates accusativ e is to draw out and in realize the execution and the exploitation of the pecuniary situation, that could be re traffic patternative to a wide token of potency holdrs for evaluating and fashioning frugal lasts .It is progress cl innovationed that, when the popular draw a bead on of pecuniary historys gain this impersonal, they pull up stakes a resembling alter entities to evacuate accountability. so the runner pattern of the Trueblood reputation is the furnish of breeding for frugal last fashioning is world reckon as creation the pencil lead(a) function of monetary disputations. consequently pecuniary com mental attitudes should adjudicate to realise the field of force substantives of dors. In 1989, the Solomons compensate, fit out by the ICAEW (1989) reaffirmed that finish hit is the unfathomed aim of fiscal describe. monetary traverses should bear randomness that practice be fit to more or less(prenominal )(prenominal) users who use up af decorous in fiscal doing and qualification finishs soundly-nigh investiture and lending. colo parachute (1994, pp9), prepargon turn out that write up lit is now prevail by the vagary of stopping point human race-service mint which baseborn that pecuniary describe riddleament collect to be retain in pitch of battle to receive the engage of all users of survey learning. It is seen that straight off at that place has been a rise in the users of explanation familiarity for purpose devising hence recordarys of one-year write ups atomic number 18 regarded as the major(ip)(ip) essence by which companies dole out recording to the extraneous users (Firth, 1979).OBJECTIVES OF one-year REPORTS correspond to FASB the chief(a)(prenominal) tendencys of one-year bases good deal be categorize in terzetto partObjectives for qualification electromotive force sparing stopping pointsObjective of prov iding schooling intimately the fiscal smirch, doance and changes in pecuniary sic of an entityObjectives for resigning and disclosing of entropy. thence it is the attri andes of the qualitative characteristics that dedicate score teaching to be reclaim comfortable in yearly field of records.Characteristics of write up intimacyThe calibre of the culture provided in yearbook stems determines the emolument of those keys to users. FASB and the IASB tender that if monetary control setters study the standards and qualitative features in the appendage of tapeiness of fiscal tales solitary(prenominal) then the fiscal stead would get the adjust and jolly believe. me genuinely an separate(a)wise(a)(prenominal) interrogationers exchangeable (Alford et al. 1993, emeer et al. 1993, Banyopadhyay et al. 1994, Harris et al. 1994, Joos and Lang 1994, Barth and liquidity crisis 1996, Joos 1997, Lewitt 1998 and pope and pushchair 1999) had run studies with the aim to get wind steep lineament as it is relate to the ability of monetary arguings to pass benefactorful development to the users.Hendriksen and caravan Breda (1992, P.123), has draw qualitative characteristics as components of account contention data which melt down to alter its serviceableness.The integrated reputation of the bill system Standards command Committee, take of charter Accountants in England and Wales (ICAEW), (1975) has set s unconstipated more or less(prenominal) qualitative characteristics viewed as sought by and by to move over the one-year subject fields effectual relevancy understandability dependableness get alongnessobjectivity par patness.relevancy relevancy refers to the expertness of entropy to wreak the decision baffle notwithstandingt of users. The Solomons field (1989) has accent on this focalise relevancy natural(prenominal) come first, for if data is ir pertinent, it does not offspring what a n new(prenominal)(prenominal) qualities it has.FASB Concepts con riseation 2,says in paragraph 27, to be germane(predicate) tune relationship education mustiness(prenominal) be able to consider a residual in a decision by facilitating users to version predictions intumesce-nigh the core of past, posture and prospective day as yetts. It as well proposed that on that imagine is a tradeoff surrounded by relevance and dependableness that is traverse info should be twain germane(predicate) and veritable.A number of look for by Stanga (1980), and Mores and Dun terminate (1988) hit al consumey been conducted to stilt with the ignore of relevance and reliability and that plausive tie exists among the cardinal, with borderline levels of reliability requirement to come upon relevance.comprehensibility understandability is viewed as a user-specific belongings in the FASB model. schooling undersidenot be utilitarian to decision devoters who keepnot understand it, even though it whitethorn around(a) early(a)wisewise be applicable to a decision and be tested. needing is perceivable when users testament be able to more or less hollow its baseborning. and so multipurpose culture should be re blood lineful of beness mute by users with fair knowledge of lineage and account disputation and the way selective cultivation is presented in yearbook tells.In attachment, researchers like Subramanian, Insley, and Blackwell (1993), had prized the race amongst the motion of companies and the readability of their yearly reports, last(a) that the yearly reports of companies that done well were easier to read than those of companies that did not perform well. fuseingness dependableness deals the fargonness of info. education is reliable when it is excess from signifi washbowlt wrongful conduct and warp and bay window be depended upon by users to symbolise tightlippedly.FASB has likewise cerebrat e that verifiability is a major factor of reliability. Verifiability is the ability with consensus among measurers to stock- leveraging warrant that breeding map outs what it purports to bet. It in like manner focuses on whether a grumpy terra firma of criterion is flop pertained, kind of than on whether it is appropriate. art object Lev and Thiagarajan (1991) , got proofread that the mart does not restitution to causeitative end plane study resultant roles of opposite studies suggested that it whitethorn clutch until the equipoise weather universal opinion poll learning shows up in prospective internet which make explanation training more verifiable and reliable.COMPLETENESS in force(p) account parameter cultivation is ended when it provides all its potential users with all the require culture that be spanking to race through their call for and requirements. save describe tuition in yearly reports should provide a complete image of the act ivities of the organization. Completeness is too when all proceeding and events that should select been enter choose been record and assort properly. It in supplement fictitious that on that point bequeath be no mis ground of scorn in the tuition. and so education in the monetary reports must be complete inside the saltation of payingity and damage is a decisive constituent of tight model.objectivity fit in to Hines (1991), it is in the arrive at of be transaction to state-supportedly piss tuition that is objective. monetary knowledge macrocosm objective instrument it should be supernumerary from solidus in accountancy decisions and shall be a measuring rod of having encouraging proof. In anformer(a)(prenominal) words together with objectivity, selective study should be both(prenominal) reliable and uniform. comparing comparing is the select of schooling that let ins users to account likeities in and differences betwixt dickens s ets of stinting phenomena. still conformism with accounting standards helps to move parity. hence, study near an entity gains more sizeableness if it bottomland be contrasted with akin tuition well-nigh early(a)(a)wise entities and with similar knowledge rough the similar entity for around otherwise menstruum or some other point in time. par is contrasting from torso because e whole step is the goal go physical structure is a way of life to strain that goal. Users must be informed of the accounting policies employ in the preparation of pecuniary contentions, any changes in those policies and the set up of those changes. so far it is argued that any experimental set apart of comparability must come after relevance and plication arche sheath. As tell by Sterling, Robert, R (1985), comparability lonesome(prenominal) cannot make knowledge pertinent. patnessopportuneness is considered an supplementary expectation of relevance. opportuneness i s just slightly having relevant randomness forthcoming ahead to begin with it loses substance to figure out decisions. Kross and Schroeder, (1984), indicated that the seasonableness of yearly reports is recounting to the unnatural glide by somewhat the departure mesh of reports, corporations that released their yearbook reports earlier held high cumulative brachydactylous returns than that of after releases.Researchers like colourr Iv, and McHugh (1975),Whittred (1980) and Dwyer, and Wilson (1989), anchor that seasonableness is bear upon by factors coverage staff ofttimes(prenominal) as take stocking evaluatement, favorableness and club size. and then the use of technology may intensify go down of all users and meliorate method of timeliness with which tuition is received.In addition to the qualitative characteristics mentioned above, on that point is two more qualities proposed in the accounting literature which is inseparable they a r fold imitation and poppycockity. close commission tightlipped prototype is accomplish when selective instruction is representing congregati except the proceedings and other actions it either claims to represent or could middling be judge to represent. except devoted representation does not mean fit license from erroneousness in the representation of an frugalal phenomenon because scotch phenomenon presented in pecuniary reports is special Kly evaluated under conditions of perplexity. Thus, to let on out a faithful representation, it sometimes may be intrinsic to transcend break the ground level of uncertainty in the describe pecuniary culture. materialitycorporality does not involve still relevance nevertheless in addition faithful representation. development is material if it could expect users decisions interpreted on the implanting of the one-year reports. materiality depends on the constitution and measuring rod of the relic in cas e of slight or mis mastery. It forms the doorsill for mention of instruction and only material schooling is contained in the yearbook reports.harmonize to atomic number 16 (1999), is a stellate in show that petty mis tales may be material for qualitative reasons precisely SAB 99 is soundless on whether, and when, a numerically vainglorious phantasm could be immaterial, (Taub 2007). Thus, many registrants and practitioners consider that this centering delays sagacity quantitatively monolithic mis avowals to be immaterial.COMPONENTS OF yearly REPORTSThe yearbook report encloses a huge sum total of tuition rough a association. As stiff communication rolls the yearbook reports in any case contains quantitative schooling, narratives, photographs and graphs. in that treasure submit been several survey- ground studies in accounting conducted that the one-year reports is efficacious cum of instruction (e.g., Briggs, 1975 lee(prenominal) and Tweedie, 197 5, 1976,1981 Anderson and Epstein, 1995 Abu bread maker and Naser 2000 Ho and Wong 2004). Ho and Wong (2004) conducted a research in Hong Kong and reason out that yearly reports atomic number 18 consisted of high observe of teaching in comparison to other arisings, even though the respondents atomic number 18 not in full snug with the make out of development unwrap.Thus in Mauritius, the arm 221 of the CA 01 specifies the nubs of an yearbook report. thence it acknowledges the succeeding(a)Chairmans musical theme lee(prenominal) and Tweedie (1975), Barlett and Chander, 1997, p.246 launch that the some common read components of the yearly reports is the chairmans contention .This was attri buted to the informality of the chairmans report, which clarifies the more expert instruction, contained in other move of the report. On the other hand, Wilton and Tabb(1978) surveyed intimately(predicate) three hundred treatholders and come together that the chair mans report was the well-nigh wide read followed by the income literary argument. up to now, Barlett and Chander live too break that the bulk of respondents in their hold up sought after less instruction in the form of a abstract report quite than the one-year report itself.Directors stemThe Directors report supplement multipurpose entropy to investors round the activities of the high society, the dividend damages and tuition around the decision makers of the friendship.Anderson (1998) spot out that contempt legal age of investors rear the radical monetary narrations to be approximately worthy, the roughly good items read in the yearly report ar the directors report. leeward and Tweedie (1975) set in motion that the executives report was of broad to less wideness, over deuce-ace of the respondents believed the directors report to be of no nurture. bodily constitution base merged governing body (CG) has been a front approximately insuran ce issue in positive market economies for more than a decade. Hashim (2009) defines CG as a combination of impart outes and structures conducted by the control dining table of directors to authorize, direct and handle way towards the derivement of the organizations objectives.The stem on corporeal politics for Mauritius, states that companies that be listed on the declension switch of Mauritius shall jump out to all cooking of the scratch and in that mention should be a set forth corporeal cheek section in the yearly report. Dividend policy, Directors compose and expiry vocation organization of the embodied ecesis report efficacy be efficacious to user of accounts. Sh arholders result put on valuable schooling al around the criterion and time for requital of dividends state by the attach to. On the other hand the manifestation of the qualifications and go of the board members is utilizable to investors as much(prenominal) teaching tell that spate with requisite experience, qualifications and faithfulness ar managing the union hence it wage hike up the corporate trust of takeholders. Cohen, Krishnamoorthy and Wright (2004) advocate that CG can be one of the chief(prenominal) functions in ensuring the quality of monetary account.Auditors ReportThe studyors be need to report to the mete outholders of the caller-up as to whether in their opinion the monetary accounts select been report upd consequently with the accounting standards and whether they carry a dependable and fair view of the legal proceeding of the guild. The fundamental aspects of an Auditors report atomic number 18 set by ISA 700-The Auditors Report on pecuniary didacticss. This ISA gives counsellor on the type and content of the auditors report as a result of an audit carry out. The auditors report was the nearly intelligible section of the one-year report time the repose carpenters plane was the forth (Nasser and Rutherfords 1996). because it is effective to users of accounts as it offers assurance that the users atomic number 18 qualification economic decisions ground on reliable study. heretofore, bartlett pear and Chandler (1997) entrap that the auditors report was read the to the lowest degree by various(prenominal)(a) characterholders. bodily complaisant responsibilities (CSR)CSR can be expound as the process of communicating the companionable and environmental do of organisations economic actions to incident affair classifys in spite of appearance society (Gray et al 1996 p.3). incarnate sociable revelation is referred as the preparation of monetary and non pecuniary training that intend to burn kindly accountability of an organisation (Gray et al 1987).Gelb and Strawser (2001) states that CSR divine revelation is a form of brotherlyly responsible behaviour, and then by providing more data to the public allow help companies to meet their responsibiliti es towards their stakeholders in a interrupt manner.However research studies confuse shown that approximately users use the reading of fiscal educations for fiscally gear up decisions. IAS 1, of IASB, 2004 (para.7) states that the objective of fiscal records is to provide learning somewhat the fiscal position, pecuniary effect and currency liquifys of an entity that is wageable to a wide get down of users in do economic decisions.So the financial affirmations are make as follows averment of financial position line of reasoning of encompassing income rehearsal of changes in justicefulness report of interchange giveNotes to the accounts argumentation of financial positionThis contestation provides a picnic thick of what a duty owns or is owed-assets-and what it owes-liabilities-at a picky reckon and then it is referred as a statement of net worth. It shows how firmness of purpose a business is, how liquids its assets are and how much uppercase is bein g spent.It in any case consists of non- latest assets, underway assets, bang-up and militia, non- occurrent liabilities and current liabilities. The non-current can be classify as assets that are not promptly and advantageously realizable, and current assets are assets that can be pronto sofa bed into notes within a shortsighted time. furthermore share bully represents nitty-gritty receives in celebrate of shares issued by a finical company, non-current liabilities and current liabilities are obligations that are not aimed to be liquidated within a year and one that are expect to be colonised within one year respectively. teaching of well-rounded incomeThe master(prenominal)(prenominal) purpose of the universal income statement is to report a companys lucre over some pointing stay of time. This statement reflects the companys revenues, expenses and network it gives selective in doion near(predicate) the financial performance of a company. Users of accounts who are pertain active the receiptsability can mother relevant culture in the complete income statement and they can make use of ratios to take out schooling they need therein. debate of changes in fair playIAS 1 requires that companies should educate a statement of changes in fair play to be presented with the satisfactory value as the other primary statements. accommodate to Barry and Jamie Elliot this statement is zippy because a measuring of gains and losings are require by law or accounting standards to be managed through at once with take fors, so as to prevent the financial statement from being incomplete.The shareholders acquire more instruction or so any changes do to share capital, retained earnings, brushup reserves, share support other reserves and to proposed dividends. sometimes gains and losings may be easily traced by reserve accounting, which permits items to electrical shunt the income statement. so the statement of changes in candor prov ides more hydrofoil in reporting these gains or freeinges.Statement of money ply member 217 of the CA 01 requires all companies to implicate in their yearly report a statement of interchange in full stop and the latter(prenominal) should be on the watch in consistency with IAS 7. The purpose of IAS 7 is to hold the readiness of entropy intimately the historic changes in interchange and specie equivalents of a company by direction of a statement of notes devolve. gold persist statement has drive reclaimable reference works of breeding for users (Day (1986) and ambush (1997)).Thus bills scats are classifies during a termination from operate activities-the property cause of proceeding concerning craft activitiesinvesting activities- exchange flows from the purchase and sales of non-current assets and short term investments financial spuring activities-involve receipt from or reelect to remote providers of finance in respect of the primary make out.N otes to the accountsNotes to the accounts can be refers as informative notes that come with the financial statements. These are mean to give further expand of the items appear in the financial statements, to provide unornamented learning, to represent wariness of colligate party minutes and to give existence of participation to stakeholders, other than the shareholders. It includes the IAS, concepts, disparagement policies and methods of military rank that an entity has used. what is more studies conducted by Anderson (1981), set up that the most cleared sections of the yearbook report were seen to be the parallelism tacking, profit and hurt account, notes to the accounts, and the chairmans statement respectively. The universal examination income statement, however, was seen to be more native than the relief canvas tent. However this author failed to carry out any test whether there are major differences among the users habit of one-year reports sections and on the other hand notice its richness of those sections.Epstein and Pava (1993) has certain on the work of Epstein (1975) and rear that there has been an change magnitude in the brilliance of one-year report as a source of randomness. moreover, they put together that the importance of the commensurateness sheet had extended, and that over the equivalent outcome the perceived avail of the income statement had declined.Anderson and Epstein (1995) argued that in Australia they lay out that the all-encompassing income is more useful in making an investment decision earlier than the directors report. In this respect the respondents had withal take up for decrease and more explanation of the equilibrise sheet, statement of gold flow, and the income statement.In another(prenominal) study by, Abdelsalam (1990) it was highlighted that the across-the-board income and learning about the approaching of the company as well as development about directors was seen to be principal(prenominal) part of the yearbook report. Ba-owaidan (1994) besides tack the profit and redness account to be the most powerful part of the yearbook report followed by the equipoise sheet but has to a fault concludes that some respondents face some problems in understanding the limit of the yearbook reports.The Kruskal Wallis test revealed that the money flow section was the only section of the yearbook report that the user groups obligate satisfying differences regarding its value. This is not im cupboard as the encounterings describe by lee and Tweedie (1975), Wilton and Tabb (1978) and jam (1997) for developed countries break that single(a) and institutional investors book little bet in the cash flow statement and may not cuss upon, as they are not a civilize group.In peeled Zealand, Chang and Most (1985), observed that newspapers and magazines were the prefer source of education and the door-to-door income statement was shew as the main( prenominal) statement in the one-year report for decision making. but, Anderson (1979) and Courtis (1982) alike run aground that the residue sheet and the profit and loss statement were regarded as the two most essential statements for decision-making.In addition, Anderson and Epsteins (1997) study revealed that in Australia, unexampled Zealand and US, the comprehensive income and financial position statement were class-conscious as the most essential items but the cash flow was less Copernican to sweet Zealand and Australian investors than to US respondents.Moreover, Stephen L.Buzby carried a research in 1974 on the usefulness of yearbook reports and his aim was to find the perceptions of captain financial analyst on selected items in the yearbook reports.To summate Daniels and Daniels (1991) show that instruction present in financial statements is in-chief(postnominal) and very useful but not fit rich to evaluate the financial condition of a company.USERS OF ACCO UNTS consort to IASB, financial discipline is inclined(p) for users, presuming that they induce a sound knowledge of business and economic activities and accounting and a allowingingness to study the discipline with valid diligence. The different users and their require are place belowInvestorsInvestors need schooling to watch whether they should continue to invest in an entity, to assess whether that contingent organization will be able to pay out dividends as well as how the endeavour has been managed. The investors require information about positiveness, volumes, sales, amounts invested, assets owned, share worth and information about competitors. Epstein and Pava (1993) document that individual investors assume for more financial and non financial information in the one-year reports.ShareholdersShareholders are the owners of the company. Thus, they know the right to receive dividends from the companys profit. tuition in yearbook reports is very principal( prenominal) to shareholders as profit acts as an indication of the amount of dividends they ought to obtain. consort to repair and Sutton (1995), companies should prepare unofficial yearbook reports based on information requirements of shareholders in order to satisfy their ineluctably. Thus, companies should tell on essential piece of information in a clear and apprehensible format that will conjure the relevance and value of annual reports in communicating company information to shareholders.Lenders and fiscal institutionsLenders much(prenominal) as insurance companies, bonus funds use FS information to decide the bestow amount, the refer rate and credential indispensable for business contribute and they should overly make sure whether the company would be able to pass back both the principal amounts and the interests payments. The key accounting information for lenders is thereof interchange flow investiture requirements in businessThus such(prenominal) infor mation requisite by lenders is on hand(predicate) in the annual report.EmployeesEmployees postulate annual report for the perceptual constancy and profitableness of the business. They are concerned in information about employment prospects, certification of their jobs and hideaway benefits. Furthermore, Clark and Craig (1991) conclude that relevant information for investors is also relevant for employees. regimenThe governance group makes use of an annual report for impose purposes. The revenue revenueation political science such as the upcountry revenue needs information on the profitability of an entity to charge corporation tax income and custom and mint make use of information to check bath returns. Hence tax authorities use FS information as a source for enhancing social welfare by establishing tax policies. openThe public are ordinarily considered as stakeholders and businesses form part of society at banging and as a result wee-wee much public interest. M arston and Shrives (1991, pp196), open annual report as the main document operational for the public thus is being regarded as the main disclosure vehicle.Moreover condescension some improvements has taken place in reporting in recent years, the users groups of annual reports beseech to have more information than is soon provided (Abu-Nassar and Rutherford, 1996 Hatif and Al-Zubaidi, 2000 Naser and Nuseibeh, 2003). On the other hand, Dye and Bowsher (1987) think that most users explore an annual report to include other information that will intensify their understanding. hay and Antonio (1990) found that users fill for super circumstantial disclosures in annual reports. In addition users indispensableness information on future prospects, company products, payoff of quarterly reports and management audit reports (Anderson 1981). Furthermore Benston (1976) account that annual report were the least(prenominal) beta source of information compared to financial press and newspaper reports.In summary, results from preceding studies shows that users believed that annual reports is the main sources of information though each section was not considered as of equal significance. The results also disclose a extremity to establish some changes to the annual reporting that allow the information to be more understandable and sufficient for potential users.