Annual Reports: Delivering Your Corporate Message to Stakeholders

Contents......Page 6
List of figures......Page 12
Preface......Page 14
Acknowledgements......Page 18
Part 1 Framework and context......Page 20
Content......Page 22
Limitations......Page 23
Team effort......Page 24
Preparation and practicalities......Page 26
Types of business......Page 27
Developing your message......Page 28
Quality and transparency......Page 29
Communication......Page 32
Stewardship and accountability......Page 34
Reactions to annual reports......Page 38
Image and the message......Page 40
The statutory framework......Page 42
The accounting framework......Page 44
The stock exchange/Financial Services Authority framework......Page 48
Appendix 3.1: Update on accountancy regulation......Page 50
Part 2 Content and types of report......Page 52
Types of financial statement: background......Page 54
The profit and loss account......Page 55
The balance sheet......Page 57
Cash flow statements......Page 58
Statement of total recognized gains and losses (STRGAL)......Page 59
Other contents of financial statements......Page 60
Other corporate reporting statements for companies listed on the US stock exchange......Page 64
Appendix 4.1: Balance sheet and profit and loss account formats......Page 66
Appendix 4.2: Extracts from Allied Domecq PLC’s financial statements......Page 71
Appendix 4.3: Accounting policies......Page 76
Appendix 4.4: Extract from the UK/US reconciliation statement of AstraZeneca plc......Page 81
Operating and financial review......Page 88
Directors’ report......Page 94
Chairman’s statement......Page 98
Chief executive’s review......Page 102
Appendix 5.1: Operating and financial review (OFR)......Page 104
Appendix 5.2: Extract from Tate & Lyle PLC’s OFR......Page 105
Appendix 5.3: Extract from Allied Domecq PLC’s directors’ report......Page 111
Appendix 5.4: Extract from Kingfisher plc’s chairman’s statement......Page 113
Appendix 5.5: Extract from Tate & Lyle PLC’s chief executive’s review......Page 115
Verification......Page 120
Audit failures......Page 121
Wording......Page 122
Content......Page 123
Statement of directors’ responsibilities......Page 125
Qualified report......Page 126
Presentation of the auditors’ report......Page 129
Appendix 6.1: Extract from Kingfisher plc’s 2001 auditors’ report and statement of directors’ responsibilities......Page 131
Appendix 6.2: Example of information found in a statement of directors’ responsibilities......Page 133
Summary financial statements......Page 134
Interim reports......Page 140
Appendix 7.1: Summary financial statements......Page 142
Appendix 7.2: Extract from Marks and Spencer plc’s interim report......Page 150
Troubled background......Page 154
Improving the reporting of governance issues......Page 155
The reports and codes of practice......Page 156
Auditors’ confirmation......Page 162
‘Conform to the fashion’......Page 163
A necessary burden......Page 164
Appendix 8.1: Update on audit committees......Page 166
Appendix 8.2: Update on non-executive directors......Page 168
Appendix 8.3: Corporate governance discussions contained in the Combined Code......Page 170
Charities: annual reports......Page 180
Housing associations: annual reports......Page 186
Appendix 9.1: Charity annual report......Page 189
Appendix 9.2: Housing association annual report......Page 196
Background......Page 200
Forms of environmental report......Page 202
Financial and political benefits......Page 203
Environmental audits......Page 204
Suggested topics for inclusion......Page 206
Extent and quality of information......Page 207
Conclusion: the future......Page 208
Appendix 10.1: Example of an environmental report......Page 210
Appendix 10.2: Example of a ‘corporate social responsibility’ section of an annual report......Page 221
Part 3 Planning, design and production......Page 224
Deliver without fail......Page 226
Responsibility......Page 227
Avoiding ‘indifferent’ reports......Page 232
The production framework......Page 233
Common problems......Page 237
An opportunity for communicating......Page 240
Legislation......Page 241
The website......Page 243
Conclusion......Page 246
Design......Page 248
Printing......Page 251
Distribution......Page 257
Constant vigilance......Page 259
Avoiding the rush......Page 260
Politics and pressure......Page 261
Avoiding accounting delays......Page 262
Contents checklist......Page 264
Paper and packaging checks......Page 265
Learning from mistakes......Page 266
Preparing for ‘difficult’ questions......Page 267
Annual report preparation checklist......Page 268
Evaluate other companies......Page 272
Keep an open mind......Page 273
It’s your message......Page 274
References......Page 276
A......Page 278
C......Page 280
D......Page 282
E......Page 283
I......Page 284
O......Page 285
P......Page 286
S......Page 287
U......Page 288
X......Page 289