Importance of Annual Reports and Accounts Essay

Importance of Annual Reports and Accounts - Essay Example Generally enterprises use annual reports to express three major types of information and that are market information, financial information and information related to productivity. Tesco’s annual reports also hit the same purpose as they project information of market competencies, company’s fiscal growth and revenues with respect to output levels (Thomsett, 2007). Tesco’s Annual Reports on Market Analysis Tesco’s annual reports talk about the market situation in which the company operates. The reports indicate different market segments, those in which Tesco is successful and those where the company sets back. There is a summarized overview of different business constraints which Tesco highlights in its annual reports. Constraints include trading levels, profit and loss statements, revenues of a particular fiscal, growth, number of employees working, and number of stores operating in one particular fiscal. By giving the overview of all such constraints, Tes co is able to analyze its present market situation (Tesco, 2012). The report comes out at the end of each fiscal giving an overview of complete market statistics. This enables managers to assess present market in terms of future growth prospect. From Tesco’s annual reporting system it can be said that annual reports play a decisive role in market analysis. By having such event based information as in Tesco’s reports, the company is able to compare its past market with the relativistic present market (Tesco, 2012). Actually the reports are projections of periods allowing the planning to make true real assessment. This helps in creating market picture, which shows that how much there is stability and... This paper approves that there are different reasons of why annual reports are important to enterprises. Some of the reasons are clean market analysis, comprehensive growth assessment and comparative financial evaluation, which are helpful to prepare future plans for the company (Stittle, 2003). Annual reports mostly include three types of information, market information, financial information and information related to growth and productivity. By general assessment of the reports strategists are able to understand overall performance of the company on a particular. Annual reports play a decisive role in this respect as they project the key highlights of the company including new projects, day to day customer experience, employees stability and investors engagement, which are enough elements to understand the growth rate and productivity. This report makes a conclusion that Tesco an international retailing company also operates on annual reporting system. The company comes out deliberate with a year of year reporting where information is mostly based financials, market status and growth of the company. This type of information is important to both Tesco managers and investors as they have the idea on company’s real time progress by accessing the annual reported documents. Hence it is to conclude that annual reports hold a major importance for an organization, especially when the organization is on the international grounds and requires a comprehensive tool of expression like annual reports.