Do Annual Financial Reports have to be so lengthy and cluttered Essay

Do Annual Financial Reports have to be so lengthy and cluttered - Essay Example According to a recent report by Deloitte, many of the larger firms have reports that are more than 309 pages in length. Companies disclose their business risks, the key performance indicators, and these disclosures are in response to the EU Transparency Obligations Directive. A few areas that lead to clutter are immaterial disclosures, needless explanations that prevent the reader from understanding important information. Other areas for clutter are long explanations given as declarations and footnotes that do not change every year. Other examples are detailed notes online items, share-based payments and so on. These are included more as behavioural influence from the previous years. Accountants fear comments from regulatory agencies that the reports do not disclose all the required information and hence they include a number of declarations and narrations about even minor items. Other areas that lead to excess clutter is information on corporate social responsibility, deferred tax, directors’ report and statutory information, financial instruments, intangibles, principal subsidies, movement tables, post-retirement benefits, principal risks and remuneration report.... Other examples are detailed notes on line items, share based payments and so on. These are included more as behavioural influence from the previous years (Campbell and Slack, 2008). Accountants fear comments from regulatory agencies that the reports do not disclose all the required information and hence they include a number of declarations and narrations about even minor items. Other areas that lead to excess clutter is information on corporate social responsibility, deferred tax, directors’ report and statutory information, financial instruments, intangibles, principal subsidies, movement tables, post retirement benefits, principal risks and remuneration report (Holmes, et al, 2008). One of the most abused areas that have excessive clutter is the Corporate Social Responsibility section. Many firms, such as BP and Wall-Mart, actually devote more areas on providing information and high gloss pictures on the CSR activities than they do for the actual financial reporting (Kindle berger and Aliber, 2005). While the information given in this section is entertaining and helps to understand that the company does social work also, the large volumes of information, data about various committees, sub activities, and so on do not help an investor to allot resources or to understand the health of the firm (Humpherys, et al, 2011). Another area that sees the most clutter is the section on governance. The UK Corporate Governance Code has 52 provisions but firms can show compliance to only 18. In the annual report, the firm can demonstrate how it has complied with these 18 codes. For the remaining codes, it can give the number and state briefly the reason for non-compliance. However, many

Genus Essay Example | Topics and Well Written Essays - 750 words

Genus - Essay Example The workers keep busy in construction and provision of food. Being sterile, they do not have a direct offspring but work cooperatively together to look after the offspring of the queen. However, these workers are not â€Å"obligatory sterile† (Ciszek 2000:1), meaning that they are capable of reproducing but when they have to live in colonies, they are not supposed to breed. But, if they are separated from their colonies, then they are able to actively reproduce. Worker mole-rats are able to transmit their genes to the next generation if they are sterile through the concept of inclusive fitness (Hamilton 1964:1; Axelrod & Hamilton 1981:1390), according to which if the worker mole-rats share genes with their mother queen, then they are able to assist her in raising future queens, thus, enabling the workers to transmit their genes. This assistance is a special feature of eusociality. Hence, we see close inbreeding in these mole-rats since there is high genetic similarity (Faulkes , Abbott & Mellor, 1990). This close inbreeding eliminates the chances of out-breeding in mole-rats which increases their relatedness to the queen’s offspring. This close genetic relatedness maximizes the workers’ potential to do more work. ... The male members of these non-workers mate with the breeding female. Since most of these non-workers are sleeping most of the time, thus, the overall energy requirement for the colony is reduced. Their main role is the assistance in the brought up of the offspring. Female mole rats of all these categories are non-breeding, and will never reproduce. Although they are not sterile, yet their ovaries have been found to be inactive. Male mole-rats are able to inseminate; however, small mole-rats have difficulty mating with the bigger breeding female. As far as the breeding female is concerned, she belongs to the category of non-workers, and is of the same size as that of non-workers. She is identified through her prominent mammary glands. The offspring that is born is fed by the breeding female, and rests with the sleeping non-workers. If the nest is in some danger, both the sexes of the frequent and infrequent workers pick up the offspring, and take him out of the nest. When the danger i s over, all the members of all castes bring him back in. During weaning, he feeds on the food brought in by the frequent workers; and, when he is about 2 months old, he joins the army of frequent workers, and is about their size at one year. His joining the caste of frequent workers is an evidence of that the naked mole-rats share an extended family, which makes them eusocial. Hence, the naked mole-rats are a perfect example of eusociality. They resemble a lot with eusocial insects but differ in that mole-rats do not have a clearly defined breeding male. The breeding female is not easy to catch which shows that she does not reside at such a place that is frequently exposed to dangers like predators. This feature is also present in eusocial insects.