Word Limit: The essay should be a maximum of 600 words (excluding references).
This assessment task is designed to test your achievement of learning objectives 1, 2, and 4. This is an individual assessment task not a group project. It is designed to assist you in demonstrating your knowledge of, and ability to critically assess influences on a contemporary issue in financial reporting and disclosure. It also provides you with an opportunity to further enhance your research, judgement and written communication skills.
BACKGROUND: Issue to be investigated: Graph use in financial reports
The growing complexity of business transactions and greater regulatory scrutiny have significantly increased the demands on corporate reporting. Corporate boards face a tremendous challenge where they need to clearly communicate key information to various stakeholders whilst ensuring efficient use of firm resources.
A recently released KMPG (2015) report* revealed that organizations have increasingly decluttered their financial reports in response to reducing complexity in corporate reporting. This report noted that a few organizations have started using graphs in presenting their financial information to enhance clarity in communication.
* KPMG. (2015). A new era in corporate reporting: Review of recent corporate reporting and decluttering trends in the ASX 200. KPMG: Australia, September.
QUESTION: Specific requirements and guidelines:
You are to research the issue of using graphical representation as a means of communicating financial information, and write an essay to critically evaluate the use of graphs in financial reports with reference to the Conceptual Framework for Financial Reporting. Support your position and discussion with reference to academic journal articles.
Word limit is 600 words (excluding references).
• Use a minimum of FIVE academic journal articles. The following is an example of journal article which provides some background information to assist you when completing this assignment: Dilla, W.N., & Janvrin, D.J. (2010). Voluntary disclosure in annual reports: The association between magnitude and direction of change in corporate financial performance and graph use. Accounting Horizons, 24(2), 257-278.