Question One: The revenues, expenses, assets, and liabilities reported by an organization provide data that are essential for decision making. The informational value of these figures enables a thorough analysis of an organization and its financial health and future prospects. How do outsiders learn of these amounts? How are financial data actually conveyed to interested parties? For example, a company such as ZAMBEEF PLC. Which has possibly millions of current and potential shareholders, creditors, and employees. How does such a listed limited liability company communicate vital financial information to all the groups and persons that might want to make some type of considered assessment?
Listed limited liability companies communicate financial information to all stakeho;ders through Annual Reports. Annual reports are published and sent to all stockholders and interested parties.
Securities and Exchange Commission has certain requirement for content of the Annual Reports.
Annual reposts should contain audited accounts in the form of Income Statement, Financial position , cash flow statement and auditor’s report.
In addition to this, the Annual reports contain management discussion and analysis of the business and financial condition, market price information etc.
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