More Innovative Communication Techniques Should be Used in Annual Report

1. More Innovative Communication Techniques Should be Used in Annual Report • Present by: • Priscilla Wong 97001051Carmen Wong 97001303Ingrid Yeung 97006009Carly Wong 97006010 AGAINST

2. Agenda • Purpose Of Annual Report • Definition of innovative communication techniques • Some examples related to the innovative communication techniques • Innovative communication fulfill ultimate purpose ???????

3. Primary objective of annual report • The purposes of Annual Report: • 1. Including the objective of financial statement that are providing information that isuseful (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

4. 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.

5. 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

6. Communication • Process by which information is exchanged between individuals through a common system of symbols, signs or behavior

7. 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

8. 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

9. Exclusion of data x-axis not labelled no zero baseline

10. 3-D effect exact figure can't be determined

11. Improper construction • Not begin at zero baseline • influence visual impression • change chart appearance • x-axis without any label

12. Improper construction

13. Gridlines absence of gridlines too many gridlines

14. 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

15. 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

16. Format - Color Green

17. 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.

18. Format – Organization Chart(Traditional) • Lists the percentage holding of its subsidiaries • Associates or Subsidiaries ???

19. 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

20. Format – Presentation in Symbol • Turnover of Maxim’s $500 • Year 1999 • Year 2000 • Year 2001

21. 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….

22. 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

23. Package – Annual Report • Management presents in the video  positive manner  wrong decision by investors

24. 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

25. 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

26. Strongly Against!

27. The End