Many Companies,especially Larger Companies,now Include a Highlights Statement in Their

question 20

Essay

Many companies,especially larger companies,now include a highlights statement in their annual reports.What are the main items likely to be included in such a statement? What are the perceived benefits of giving this information? Also explain any possible disadvantages of publishing a highlights statement.

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Definitions:

Compounded Quarterly

This term describes the method of calculating interest by adding the interest to the principal sum every quarter, leading to compound interest.

Compounded Semi-annually

Interest that is calculated and added to the account balance twice a year.

Annual Payments

Payments that are made once a year.

Payout Figure

The total amount paid out to a policyholder in an insurance claim or to an investor in dividends or withdrawals.