Assignments Annual Reports and other Financial Documents

 

Matching the Columns

1.  CEO letter                                                               A. Auditing of the organization’s books.

 

2.  Management discussion                                           B. Filled with good news and optimism

3.  Auditor’s report                                                       C. Where and how a organization makes most of its money.

4.  Sales report                                                             D.  Includes decisions, directions and trends.

5.  Audience                                                               E.  Focus is on content.

6.  Financial documents                                               F.  Messages are aimed here.

 

Answers:  1.) b, 2.) d, 3.) a, 4.) c, 5.) f, 6.) e

Multiple-Choice

 

1.      When trying to get a reporter to report your news, you should do what?

a.       Prepare a media release

b.      Make it clear and interesting

c.       Explain why it is important

d.      All of the above

 

2.      One of the common problems of putting together an annual report is that it is

a.       Timely

b.      Aimed at the widest possible audience

c.       Costly

d.      Redundant

 

3.      When it comes to financial information, you are likely to be dealing with

a.      People who know the product better than you do.

b.      The employees

c.       Human resources

d.      The manager in charge.

 

4.      The ______ helps you shape your message.

a.       Newsletter

b.      Audience

c.       Accountant

d.      CEO

 

5.      It is important to _______ all you information, so you know where to find it when you need it.

a.       Share

b.      Organize

c.       Disarrange

d.      None of the above

 

6.      Writing has more impact and is more credible when you show something is ______.

a.       False

b.      Positive

c.       True

d.      Negative

 

7.      Good writing is ______ and _______.

a.       Opinionated; false

b.      Clear; focused

c.       Clear; fuzzy

d.      None of the above

 

8.      An annual report is whose work?

a.       Yours

b.      Accountant

c.       CEO

d.      organization’s


Summary

            An annual report, or any other financial document, is just another type of writing. Like a media release, a letter, a script, or a novel, financial reports follow certain formats. Make sure that you know and understand the proper format for the report you are producing. organizations generally have established formats for specific types of documents. It’s what the readers expect.

            Since we are talking about financial documents, they will contain numbers and statistics, probably a great deal of them. As you get ready to put your report together, make sure that you know exactly what they all mean and why they are important. You should be able to get access to whomever you need to explain it to you.

            The next step is to organize your material, and then create an outline which will allow you to write your report in a logical fashion.

            Make sure you understand who your audience will be and what they can be expected to know. At times you will have to walk a fine line to keep it moving while still providing more information and explanations than some of your readers will need.

            Once you start writing, you are just writing. The writing process is the same whether you are writing a comedy sketch or an annual report. You have a point, a purpose, information to convey, and a structure to work within.

            Keep your ego and expectations out of it. You are writing this because it is your job to produce the document as a service to the people who will read it. Look at the document they way they will. Learn what information they expect to see, and where they expect to see it, and give it to them.

~ ~ ~ ~ ~

 

Test

 

1. ______        Financial documents’ focus is on the content.               

2. ______        Your audience helps you shape your message.

3. ______        If you are writing a letter to investors, it should look like an annual report.

4. ______         You should always start your outline at the closing statement and work your way towards the beginning.

5. ______         When writing financial documents, you should be vague and backed up with opinions.

6. ______        Numbers are the most important part of an annual report.

7. ______         The key to effective writing is learning how to look at your work the way your readers will.     

8. ______        A CEO’s letter should be filled with good news and optimism.

9. ______        You can always predict exactly what a reporter will write.

10.______       It is always important to know who your audience is.

 

Answers:

1.          T

2.          T

3.          F – It should look like a letter to investors.

4.          F – Start outlines at the beginning.

5.          F – You should be specific and backed up with facts.

6.          T

7.          T

8.          T

9.          F – You can never predict what a reporter will write.

10.        T

 

Bibliography

 

Foster, L. (1961). Understanding financial statements and organizational annual reports. Philadelphia: Chilton organization.

 

Hawkins, D. (1986). organizational financial reporting and analysis: Text and cases (3rd. ed.). Homewood, IL: Irwin.

 

Riahi-Belkaoui, A. (2001). Financial statements: Present and future scope. Westport, CT: Quorum Books.

 

Glossary

 

Financial Documents – Documents that are focused on the content of a organization’s finances.  It includes information of income and expenses, budgetary predictions and budgetary reality.

 

Annual Report – A historical document about the organization’s yearly finances that is always written about the past.

 

Auditor’s Report – A simple letter from the accounting organization that audits the organization’s books.  It should state that the figures are true, and they give an accurate picture of the project/programme purpose.

 

Marketing Report – It details what the organization does, and when, where, and how it does it.

 

Learning Objectives

 

·         Make sure you understand the proper format for the report you are producing.  All reports have different formats.

·         Financial documents are all about finance – income and expenses, budgetary predictions and budgetary reality, and profit and loss.

 

Q & A

 

What should you never assume when writing a financial document?

You should never assume that the rest of the world will look at things the same way you do.  Also, never assume that people will automatically believe a report, that people will not look elsewhere for information, and never, ever assume that unpleasant facts can be hidden.

 

What should you do when writing a financial document?

First, you should make sure you understand what the reports mean, then organize your material and create an outline.  It is very important to know who your audience will be and what they can be expected to know.  Finally, once you start writing, you are just writing.

 

Why is knowing who your audience is so important?

The targeted audience determines how you shape your message.   It is likely that you will be dealing with people who know your product or “money” better than you do.

 

 

End of Module