Chapter 5 Narrative Reports. Financial Information Analysis2 Copyright 2006 John Wiley & Sons Ltd Annual Report (AR) Principal means of communication.

Slides:



Advertisements
Similar presentations
ASX Corporate Governance Council
Advertisements

October 2009CG History in the UK - JESW - L4b 1 Audit and assurance Corporate Governance in the United Kingdom: History, context and principles Lecture.
W. Richard Frederick Governance Consultant. 1. Is the board effective, passive, or dysfunctional? 2. Is the board composition good?  Skills, experience,
Understanding Audit Reports
Chapter 11 Business Combinations. Financial Information Analysis2 Copyright 2006 John Wiley & Sons Ltd Business Combinations (Groups) Most large UK plc’s.
NAIC Oversight of Corporate Governance Commissioner Susan Donegan Vermont Department of Financial Regulation.
1 PRACTISING CORPORATE GOVERNANCE IN HONG KONG Speech to American Chamber of Commerce in Hong Kong, 12 December 2003 By Paul M Y Chow, Chief Executive.
6-1 Full and Fair Reporting Electronic Presentation by Douglas Cloud Pepperdine University Chapter F6.
Sarbanes-Oxley Act. 2 What Is It? Act passed by Congress in response to the recent and continuing corporate scandals. Signed into law July 30, Established.
Chapter 15 International Accounting and Harmonisation.
Chapter 2 Conceptual Context. Financial Information Analysis2 Copyright 2006 John Wiley & Sons Ltd Conceptual Framework ‘ Unified system of thought’ Foundation.
Regulatory and Legislative Contexts Chapter 1. Financial Information Analysis2 Copyright 2006 John Wiley & Sons Ltd Background Importance of accounting.
Corporate Governance Life-Cycle GOVERNANCE in GOVERNMENT DOES IT EXIST? SIR JOHN BOURN COMPTROLLER and AUDITOR GENERAL.
Introduction to Financial Statements and Other Financial Reporting Topics COPYRIGHT ©2007 Thomson South-Western, a part of the Thomson Corporation. Thomson,
Filmmaker Krisztof Kieslowski
Quality evaluation and improvement for Internal Audit
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & Simnett Slides prepared by Roger Simnett.
Chapter 13 Reports and Disclosures I: Overview. Lecture Topics Legislative requirements Content of annual financial reports.
Chapter 4 Governance Context.
Chapter 14 Corporate Social Responsibility. Financial Information Analysis2 Copyright 2006 John Wiley & Sons Ltd Corporate Social Responsibility Recent.
Chapter 10 Profitability and Return on Investment.
Good Corporate Governance in Practice. Outline What is Corporate Governance? Regulatory Requirements for Banks in Sri Lanka DFCC Practices - Key Elements.
FAITH NGWENYA TECHNICAL & STANDARDS EXECUTIVE SOUTH AFRICAN INSTITUTE OF PROFESSIONAL ACCOUNTANTS 1.
Chapter 7 Corporate Governance.
CORPORATE GOVERNANCE.  WHAT IS CORPORATE GOVERNANCE – PROCESSES AND STRUCTURE BY WHICH BUSINESS AND AFFAIRS OF CORPORATE SECTOR IS DIRECTED AND MANAGED.
Chapter 03 – Statutory Audits. Regulatory Framework Depends on –Company Legislation –1995 No 15 SL Acc & Aud Stds Act –Common regulations –Specific Acts.
Elements of Code of Corporate Governance: East Asia Perspective Prof. Stephen Y.L. Cheung Department of Economics & Finance City University of Hong Kong.
Slide 14.1 Pauline Weetman, Financial and Management Accounting, 5 th edition © Pearson Education 2011 Chapter 14 Reporting corporate performance.
1 © 2012 John Wiley & Sons, Ltd, Accounting for Managers, 4th edition, Chapter 2 Accounting and its Relationship to Shareholder Value and.
SA 700 (REVISED), SA 705 & 706 ASHOK SETH, Lucknow B. Sc, FCA, DISA (ICA)
2 - 1 Copyright  2003 Pearson Education Canada Inc. CHAPTER 2 The Auditor’s Reports.
PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA Copyright.
April 2008 Global Developments in Corporate Reporting Charles Tilley Chartered Institute of Management Accountants Chief Executive Global Developments.
Chapter 7 Fundamental Analysis. Copyright 2006 John Wiley & Sons Ltd Financial Information Analysis2 Analysis Mass of data requires techniques to be used.
Communicating and Interpreting Accounting Information Chapter 5 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.
© 2013 John Wiley & Sons, Ltd, Accounting for Managers, 1Ce, Ch 2 1.
Part Eleven Reporting on Financial Statements 1. 2 Structure of Seminar 1.Standards of Reporting 2.Types of Audit Opinions 3.Other Reporting Considerations.
Copyright© JSE Limited Corporate Governance AltX – is it different? Noah Greenhill.
S21: Reporting. Audit Reporting » The main objective is to ensure clear and informative reporting to the users of financial statements. » Audit Reports.
Convergence of Securities Laws? The European Prospectus and Transparency Directives in Comparative Perspective Dorothee Fischer-Appelt American.
AC312 Week 7 4Auditor’s Report 4Truth and Fairness.
CHAPTER 1 An Overview of Auditing. What does an auditor do?
By Abdur Rashid Mirza University of Lahore School of Accountancy and Finance.
1 Rittenberg/Schwieger/Johnstone Auditing: A Business Risk Approach Sixth Edition Chapter 17 Communicating Audit and Attestation Results Copyright © 2008.
PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA Copyright.
1 RECOMMENDATIONS ON THE COMPANIES BILL, 2009 WITH REGARD TO THE PROFESSION OF COMPANY SECRETARIES By: Vinayak S Khanvalkar Vice President.
Slide 1 Federation des Experts Comptables Méditerranéens 4 th FCM Conference Capri, 3-4 May 2004 The Globalisation of Small and Medium-sized Enterprises.
Trends Trends 2005 Good Practices in Corporate Reporting 6 th annual publication 
Copyright © 2016 South-Western/Cengage Learning AUDIT REPORTS ON FINANCIAL STATEMENTS CHAPTER 15 Auditing A Risk-Based Approach To Conducting A Quality.
Published Accounts Mr. BarryA-level Accounting Year 13.
Corporate Governance Review 2010 CFA Ireland presentation 20 April 2010 Paul Raleigh Managing Partner Cian Blackwell Partner, Business Risk Services.
Chapter 7 Corporate Governance. Definition of Corporate governance “Corporate governance involves a set of relationships between a company’s management,
SOUTH AFRICA. Boards & Directors –Boards & Directors – Responsibilities, director remuneration, Responsibilities, director remuneration, constitution.
Page 1 Portfolio Committee on Water and Environmental Affairs 14 July 2009.
Audit Reports Chapter 3. Audit Reports What is an audit report? Different reporting guidelines exist depending on the type of company upon which the auditor.
Governance, Risk and Ethics. 2 Section A: Governance and responsibility Section B: Internal control and review Section C: Identifying and assessing risk.
Insurance Summit 2016 REGULATORY UPDATE. Panel Participants Ray Farmer (Director, South Carolina Department of Insurance) Tim Morris (Hanover Stone Solutions)
Broader Disclosure and the Operating and Financial Review (OFR): the standards perspective Ian Mackintosh Chairman, ASB November 2004.
Chapter 1 Corporate Governance
Auditing & Investigations II
Chapter 4 Governance Context.
Role of the Board William St. John President & CEO 20/20 Foresight
Part Five Other Assurance Services
Corporate Social Responsibility
© 2013 John Wiley & Sons, Ltd, Accounting for Managers, 1Ce, Ch 4
Topic 9: Reporting obligations
Communicating Levels of Assurance
Annual Report: Narrative
Financial Accounting, Sixth Edition
Chapter 7 Corporate Governance.
Presentation transcript:

Chapter 5 Narrative Reports

Financial Information Analysis2 Copyright 2006 John Wiley & Sons Ltd Annual Report (AR) Principal means of communication Produced annually by companies Increasing in size and importance Aimed primarily at shareholders Needs of other users being recognised Contains quantitative and qualitative info.

Financial Information Analysis3 Copyright 2006 John Wiley & Sons Ltd Annual Report ctd. Content controlled by statute, regulation, IFRS Narrative and financial elements, e.g.: financial statements and notes chairman’s, directors’, auditor’s reports operating and financial review Financial elements central Narrative elements increasing in range Supplemented by graphs, photos etc.

Financial Information Analysis4 Copyright 2006 John Wiley & Sons Ltd Narrative content Should supplement financial statements Required by statute: Directors’ Report Auditor’s Report Not required by statute: Chairman’s statement Operating and Financial review Chief Executive’s report Other, e.g. historical summaries

Financial Information Analysis5 Copyright 2006 John Wiley & Sons Ltd Chairman’s Statement Not required by statute Personal perspective Comments on macro contexts Usually refers to: significant events overall results, performance future prospects Danger of management ‘spin’

Financial Information Analysis6 Copyright 2006 John Wiley & Sons Ltd Directors’ Report Required by statute Impact of Combined Code extensive Includes sections on: trading activity developments during period directors (especially remuneration) employees corporate governance Directors’ responsibilities in relation to financial statements Elements may be commented upon by auditor

Financial Information Analysis7 Copyright 2006 John Wiley & Sons Ltd Auditor’s Report Auditor conducts “independent review” Report: clarifies auditor/management roles expresses opinion on ‘true and fair’ [or “fair presentation”] Report may be unqualified or qualified Qualified opinion significant for any company Must also comment on: internal controls compliance with Cadbury any other area of AR showing inconsistencies

Financial Information Analysis8 Copyright 2006 John Wiley & Sons Ltd Operating & Financial Review (OFR) Recommended by Cadbury Equivalent of US Management’s Discussion & Analysis Commentary on Operating and Financial aspects Historical assessment, but with future perspective Incorporation of Key Performance Indicators (KPIs) ASB has produced RS 1 to cover disclosures Recent govt initiative to make mandatory now rescinded But, best practice, will see it produced by many companies

Financial Information Analysis9 Copyright 2006 John Wiley & Sons Ltd Other elements Some ARs now include report by CEO allows CEO to communicate with users supplements Directors’ Report and OFR Historical summaries not required by statute usually summarise 5-year performance often tabular/graphical presentation Visual (graphs/photos) commonly used

Financial Information Analysis10 Copyright 2006 John Wiley & Sons Ltd Summary AR a principal means of communication Narrative element: substantial evolving in type and range partly controlled by statute open to abuse/manipulation Critical to any informed analysis

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.