The narrative section of a companys annual report provides users with Essay

The narrative section of a companys annual report provides users with useful information on the companys accomplishment and prospects - Essay ExampleThus, a quality narrative report about a company is exceedingly essential for sound assessments and evaluation it creates a platform for the organization to be evaluated when on matters that deal with integrated governance and company performance. Corporate governance is always deemed to improve the organizations long tern outcomes. archives reporting has a number of signifi baseces to the incorruptible, shareholders, potential customers, lenders and investors. To start with, a narrative report is deemed as a memorandum for the potential investors and lenders. An accurately prepared narrative report provides the organization with a document that can be presented to the lenders and investors who have expressed their interest in the companys business or crimson potential stakeholders that can be approached for funding. Thus, prepari ng an objective and clear narrative report for the purposes other than evaluation of the firms general progress is useful as it can be presented to other parties outside the organization.Secondly, a narrative report is useful since it enables the company to reflect on the direction a business has taken in both previous and present years. A number of questions and comparisons must be drawn so as the report can cover or rather answer many of the questions being asked by the organization or the public. The way this information is presented, it must be easily understood by both the members of the organization and the public in order to communicate its intentions (Yeoh, 2010).In addition, a narrative report that has a snapshot of the organizations capabilities trend that traces all the transactions or activities in previous years. Thus, this document will provide useful information that can act as proof whether the company has always been operating within the affordable or sustainable m argins that earn it reasonable profits (Anderson, 1981). Furthermore, a news report report that includes