Global Trading is currently preparing its annual report and accounts. As its name sug¬ gests, it is a very big enterprise, with very complex accounting procedures and reports. Currently, it publishes a profit and loss account and a balance sheet. The directors are considering a proposal to produce a more simplified set of financial statements, either in addition to, or even instead of, the usual, more complex state¬ ments. One possibility, for example, would be to produce simply a summary of monies in and out of the bank account.

Taking each of the four characteristics in turn, assess whether the proposal is sound. You may ignore any legal requirements.