narrative reports Essay

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The narrative report is a collection of information used to represent a company’s business, its market position, the used strategy, the performance and the future prospect. Occurred events, different detail and descriptions are usually the main focus of narrative reporting. The narrative report assign the presenter of the company to put the occurred events, that lead to any kind of compilation or problem, in a certain order. The main body of the essay will include a critical discussion of some key characteristics required for a good narrative report to be produced. It will also include critical discussion for the usefulness of narrative reports in the decision making of managers and shareholders. There is also a description of some of the …show more content…
The reason for this problem to emerge is that personal resources are required in order to acquire ordinary shares. This on the other hand is accompanied with high level of expectancy for income in a long term time. Dividend income and capital gain are considered with equal importance by investors. (Anderson, 2012) A distinguishing mark for the usefulness of the corporate annual report is its usage as information recourse when investors make the decision to buy, sell or hold shares. Another source, for receiving information for the company’s status, investors are using is the company visits they make. Visiting the company is considered as a useful information resource because of the ability to reach any kind of information first before the information is disclosed to other investors. This promotes the opportunity for higher profit for the visiting investors. (Anderson, 2012) For investors the most important sections of the annual report are the once affecting their investment decisions. The statement for financial position, profit and loss statements, notes to the accounts and chairman’s address are considered as such. They all show the development or decadence of the firm and help investors in their decisions. Other sections may be read from the investors as well. (Anderson, 2012) Although the majority of higher stakes investors are actually questioning the annual report rather than take it as face value of the company’s status. The reason is that

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