It should be the most important document a shareholder reads - - but the annual report is often less useful than it ought to be and change is neededIts too difficult and detailed to see the wood from the trees. Despite the multiple disclosures, one report is far from comparable with another, so its hard to benchmark against competitors.

Its production was evidently left to people whose primary interest was not creating an efficient piece of communication. It fails, again and again, the first test of a management document, which is that the content must not be obscured by the presentation.

Crosland, J. (2013) The perfect annual report. Investors Chronicle, August 30.

Required:

With reference to relevant academic literature and a range of companies, critically appraise the above statements. The answer should critically evaluate the comparability issues and other limitations of the annual reports.