2. More Innovative Communication Techniques Should be Used in Annual Report Present by: Priscilla Wong 97001051 Carmen Wong 97001303 Ingrid Yeung 97006009 Carly Wong 97006010

3. Agenda Purpose Of Annual Report Definition of innovative communication techniques Some examples related to the innovative communication techniques Innovative communication fulfill ultimate purpose ???????

4. Primary objective of annual report The purposes of Annual Report: 1. Including the objective of financial statement that are providing information that is useful (true and fair) to users for the purpose of accessing: (According to HKSSAP 1) - financial position at a particular point of time - performance and cash flows of an enterprise during a specified period of time - stewardship of managements during the accounting period

5. Primary objective of annual report The purposes of Annual Report: 2. Conveying a lot of other important information: -company background e.g. history -corporate structures -directorship -main operations -future prospects etc.

6. Primary objective of financial statements Why the users want to access annual report main reason for decision making e.g. -investors: whether should invest in the company or not -government: making government plan critical, serious and important decision

7. Communication Process by which information is exchanged between individuals through a common system of symbols, signs or behavior

8. Innovative communication technique A creative way to convey a message to the audience which is different from the traditional communication channel Innovative communication: too innovative make users difficult to understand and loss the serious

9. Graph Convey a message to the audience in an easy way it provides opportunities to mislead the readers Inclusion or exclusion? Colors? Shading? Complex designs and information overload

10. Exclusion of data

11. 3-D effect

12. Improper construction Not begin at zero baseline influence visual impression change chart appearance x-axis without any label

13. Improper construction

14. Gridlines

15. Research Findings 35% companies include graphs 52% of these graphs are misleading users may be misled by the graphs innovative graphic design distracts the readers from receiving the information

16. Format - Colors Too brightly colored confuse the reader Shading optical illusions alter the real message Too many colors or various shaded or similar colors difficult to differentiate the relative values

17. Format - Color

18. Format – Organizational Chart (Innovative) Transentric focuses on improving supply chain performance in the business-to-business marketplace. Nexterna helps companies stay connected to remote mobile resources – people, vehicles and data. Timera provides a proactive environment for managing enterprise work forces. Ekanet is developing a business that leverages Union Pacific's telecommunications assets.

19. Format – Organization Chart (Traditional) Lists the percentage holding of its subsidiaries Associates or Subsidiaries ???

20. Format - Presentation in Symbol For example Maxim s - turnover in bar chart cutie but not appropriate not know the exact figure and not give a trustful feeling reduce the creditability and not professional => may attract the readers but may distort the professional image

21. Format – Presentation in Symbol Turnover of Maxim s $500 Year 1999 Year 2000 Year 2001

22. Format - Font Special and attractive But difficult to read For example if KBM Basis of consolidation ( innovative ) The consolidated accounts include the accounts of the Company and all its subsidiaries made up to 31 December each year…. Basis of consolidation (traditional) The consolidated accounts include the accounts of the Company and all its subsidiaries made up to 31 December each year ….

23. Package - Annual Report CD-Rom =>abstract report, e.g. EPS, P/L and B/S But -investors are some under educated persons or dislikes playing computer -CD-Rom may be damaged Web => release annual report through the web But-investor have no knowledge about computer and internet =>accounting information becomes meaningless

24. Package – Annual Report Management presents in the video positive manner wrong decision by investors

25. Primary objective of annual report Information useful to users for the purpose of assessing: financial position at a particular point of time performance and cash flows of an enterprise during a specified period of time stewardship of management during accounting period Conveying a lot of other important information

26. Conclusion Innovative communication techniques may capture the attention of readers But May be impossible get the correct and accurate information Because: difficult to reconcile with the underlying data preparer may intentionally or unintentionally mislead => the primary objective of the annual report cannot be achieved

28. The End