More Innovative Communication Techniques Should be Used in Annual Report

More Innovative Communication Techniques Should be Used in Annual

Report

Present by: Priscilla Wong 97001051

Carmen Wong 97001303Ingrid Yeung 97006009Carly Wong 97006010

Agenda Purpose Of Annual Report Definition of innovative communication

techniques Some examples related to the innovative

communication techniques Innovative communication fulfill

ultimate purpose ???????

Primary objective of annual report

The purposes of Annual Report: 1. Including the objective of financial

statement that are providing information that is useful (true and fair) to users for the purpose of accessing: (According to HKSSAP 1) - financial position at a particular point of time - performance and cash flows of an enterprise during a specified period of time - stewardship of managements during the accounting period

Primary objective of annual report The purposes of Annual Report:

2. Conveying a lot of other important information: -company background e.g. history -corporate structures -directorship -main operations -future prospects etc.

Primary objective of financial statements Why the users want to access

annual report main reason for decision making

e.g. -investors: whether should invest in the company or not     -government: making government plan

critical, serious and important decision

Communication Process by which information is exchanged

between individuals through a common system of symbols, signs or behavior

Innovative communication technique

A creative way to convey a message to the audience which is different from the traditional communication channel

Innovative communication: too innovative make users difficult to understand and loss the serious

Graph Convey a message to the audience in

an easy way it provides opportunities to mislead the

readers Inclusion or exclusion? Colors?

Shading? Complex designs and information

overload

Exclusion of data

3-D effect

0

20

40

60

80

100

1998 1999 2000 2001

Area AArea B

Area C

Improper construction

Not begin at zero baseline

influence visual impression

change chart appearance

x-axis without any label

Improper construction

0

500

1000

1500

2000

2500

1995 1996 1997 1998 1999

Gridlines

0

2

4

6

8

10

12

14

16

A B C D E

0

2

4

6

8

10

12

14

16

A B C D E

Research Findings 35% companies include graphs 52% of these graphs are misleading

users may be misled by the graphs “innovative” graphic design distracts the

readers from receiving the information

Format - Colors Too brightly colored confuse the reader Shading optical illusions alter the

real message Too many colors or various shaded or

similar colors difficult to differentiate the relative values

Format - Color

Format – Organizational Chart(Innovative)

Transentric focuses on improving supply chain performance in the business-to-business marketplace.

Nexterna helps companies stay connected to remote mobile resources – people, vehicles and data.

Timera provides a proactive environment for managing enterprise work forces.

Ekanet is developing a business that leverages Union Pacific's telecommunications assets.

Format – Organization Chart(Traditional)

Lists the percentage holding of its subsidiaries

Associates or Subsidiaries ???

Format - Presentation in Symbol 

For example Maxim’s - turnover in bar chart

cutie but not appropriate not know the exact figure and not give a

trustful feeling reduce the creditability and not

professional => may attract the readers but may

distort the professional image

Format – Presentation in Symbol Turnover of Maxim’s

$500   Year 1999 Year 2000 Year 2001

Format - Font Special and attractive But difficult to read For example if KBM

Basis of consolidation (innovative)The consolidated accounts include the accounts of the Company and all its subsidiaries made up to 31 December each year….

Basis of consolidation (traditional)

The consolidated accounts include the accounts of the Company and all its subsidiaries made up to 31 December each year….  

Package - Annual Report CD-Rom =>abstract report, e.g. EPS, P/L and B/S But -investors are some under educated

persons or dislikes playing computer -CD-Rom may be damaged Web => release annual report through the web But-investor have no knowledge about

computer and internet =>accounting information becomes

meaningless

Package – Annual Report Management presents in the video

positive manner wrong decision by investors

Primary objective of annual report

Information useful to users for the purpose of assessing: financial position at a particular point of time performance and cash flows of an enterprise

during a specified period of time stewardship of management during

accounting period Conveying a lot of other important

information

Conclusion Innovative communication techniques

may capture the attention of readers But

May be impossible get the correct and accurate information

Because: difficult to reconcile with the underlying data preparer may intentionally or unintentionally

mislead

=> the primary objective of the annual report cannot be achieved

The End