Every year, companies send out their annual reports to their shareholders. In the interests of saving paper and costs, shareholders may request a company's concise annual report instead of the full annual report. Company annual reports are also available for download from the company's website. Companies hold an annual general meeting (AGM) to discuss the performance of the company over the past years.

Paul Clitheroe, founding director of financial planning firm 'ipac', in his article titled 'Don't ignore those reports'listed the followingfive rules about annual reports:

1. 1. Company annual reports provide a first-hand insight into how a company has fared. Around 67 percent of share market investors rely on annual reports to form an investment decision.

   2. The Chairman's (Director's) Report is a good starting point for an overview of the company's activities during the year, its profit result and its plans looking forward.

   3. The statement of cash flows is like a household budget, telling you where money is coming in how it's being spent. It can highlight activities, such as additional capital raising, which can affect the value of your investment.

   4. Disregard photographs and glossy images presented in a company report. Glitzy presentation may look good, but window dressing can sway investor opinion.

   5. For an in-depth look at how to read company reports, log on to the consumer website of the Australian Securities and Investments Commission website www.moneysmart.gov.auSource:P. Clitheroe, 'Don't ignore those reports', Sunday Telegraph, 18 September 2008.

      Required:

• 1. Conduct reviews of journals, books or any other scholarly articles and answer the following questions:

     1. Do you think a company's annual report is useful? Why/why not? (5 marks)

     2. As an investor, which sections of the annual report do you believe are the most useful and why? (5 marks)

     3. What information will you find in the chairman's report? Why is this information important? (3 marks)

     4. Discuss the importance of cash and how this could influence any decisions you make as an investor or potential investor. (2 marks)

  2. Refer to the latest annual report of a company you wish to invest in. After reviewing the company's annual report, would you invest in this company? Why/why not?

  3. Visit the South Pacific Stock Exchange website and determine the latest share prices for this company. Make sure you include details such as date accessed, etc. (3 marks)

  4. Calculate the carrying amount/ book value per share for the company using the annual report and explain why the figure(s) in (C) and the current figure(s) are different?