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Importance Of Annual Report

Satisfactory Essays
FACULTY OF ECONOMICS AND MANAGEMENT SESSION: 2013/2014 SUBJECT: INTERMEDIATE FINANCIAL ACCOUNT (ACT 3121) LECTURER: DR. ZAIDAH BINTI TURMIN GROUP MEMBERS: 1) MOHD DANIAL ZULFARIS BIN MOHD YAZID (173567) 2) MUHAMMAD HAIKAL HAFIZ BIN MOHD RAZALI (175555) 3) MOHAMMAD LUQMAN NUL-HAKIM BIN CHE MANSOR (175862) 1.0 Annual Report The annual report is a report of the company's activities during the previous years. Generally, items that will be included in annual reports are general corporate information, accounting policies, balance sheet or statement financial position, cash flow statement, profit and loss account and many more. Objectives of Annual Report: 1. To inform the interested people about the company's performance The company can use the annual report to inform the interested people as shareholders, investors, corporate bankers and many more about their performances. 2. To promote the company's image to the public The company can use the annual report to promote their public image and allow the public to know more about them. This will help the company to grow their popularity and will be well-known. 3. To provide the company's financial information The company uses the annual report to provide the financial information of the company. Annual reports include financial statements such as statement of comprehensive income, statement of financial position and cash flow statement. 4. To highlight the company's achievements The company uses the annual report to highlight the company's achievements and performances. The company can show their achievements to the public and their previous success. 1.1 Function of Annual Report There are many functions of annual report: 1. The... ... middle of paper ... ...d at the same to produce much more product from the company. In addition, the managers of the company need to make sure the financial reports should make comparisons with budget forecasts and the statement of changes in financial position. Furthermore, to reduce the of the products, the company need to look for what are spending money and the managers decide it can reduce without effect to retails. But for increase the price, the company need to look at what are the competitors charging if they mark up the price. Next, in order ways for improve net profit margin, the company need reduce the costs that involved in creating the revenue. Finally, the most important here, The Store Corporation Berhad need to is avoid from extend the credits to slow payers of the loan, decrease the credits terms and offers to the customers about discounts just only for earlier payers.
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