Obtain the annual report of a listed company. Each member of the group should choose a different company. Most large companies will provide a copy of the annual report at no charge in response to a polite request – or you may know someone who is a shareholder and receives a copy automatically. Many companies have websites with a section for ‘Investor Relations’ where you will find a document file containing the annual report.

1. Look at the contents page. What information does the company provide?

2. Find the financial highlights page. What are the items of accounting information which the company wants you to note? Which users might be interested in this highlighted information, and why?

3. Is there any information in the annual report which would be of interest to employees?

4. Is there any information in the annual report which would be of interest to customers?

5. Is there any information in the annual report which would be of interest to suppliers?

6. Find the auditors’ report. To whom is it addressed? What does that tell you about th intended readership of the annual report?

7. Note the pages to which the auditors’ report refers. These are the pages which are regulated by company law, accounting standards and Stock Exchange rules. Compare these pages with the other pages (those which are not regulated). Which do you find more interesting? Why?

8. Each member of the group should now make a five-minute presentation evaluating the usefulness of the annual report examined. When the presentations are complete the group should decide on five criteria for judging the reports and produce a score for each. Does the final score match the initial impressions of the person reviewing it?

9. Finally, as a group, write a short note of guidance on what makes an annual report useful to the reader.