- 15 Marks
CR – Nov 2022 – L3 – Q5 – Emerging Trends in Corporate Reporting
Discuss the limitations of financial-only disclosures and the value of including non-financial information in annual reports.
Question
One of the major limitations of traditional financial statements is that they reflect only the effects of transactions that could be reliably measured in monetary terms. Many corporate organisations now include management discussion analysis in their published financial statements. At present, entities reporting under IFRS do not have to publish non-financial information. However, many useful non-financial information had been identified and disclosed by some organisations voluntarily.
Required:
a. Appraise the problems associated with the disclosure of only financial information in an annual report. (5 Marks)
b. Analyse major non-financial information that is considered useful for voluntary disclosure. (5 Marks)
c. Discuss the benefits associated with the disclosure of non-financial information in corporate annual reports. (5 Marks)
(Total 15 Marks)
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