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| Subject: Re: Approximate date annual 18/10/2002--N.E. Renton pg 151 152 159 | |
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Author: anonymous |
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Date Posted: 04:26:10 10/16/02 Wed In reply to: anonymous 's message, "Approximate date annual report made available 18/10/2002" on 02:07:16 10/16/02 Wed Pages 151 152 159 Chapter 8 paragraphs 801.802 803 804 805---833 ------------------------------------------------------------ N.E. Renton---Understanding the Stock Exchange. ------------------------------------------------------------ 801 ------------------------------------------------------------ For many years all companies have been required by law to produce an annual report which is sent to all shareholders shortly before each Annual General Meeting and filed with the Australian Securities Commission. In the case of listed companies copies of these reports must also be filed with the stock exchange. ------------------------------------------------------------ The exchange has always required considerably more data from companies than this legal minimum, in order to ensure the market is properly informed. ------------------------------------------------------------ The information in annual reports can be very important to the market in general and to security analysts in particular. It becomes the starting point for appraising the investment merits of each company's securities--see further in Chapters 9 and 10-thus allowing investors to make meaningful decisions to buy, to sell to hold. ------------------------------------------------------------ 802 ------------------------------------------------------------ Annual reports contain accounting, statistical and certain other relevant information and statements prepared: . In compliance with the Corporations Law. . In accordance with the appropiate professional accounting statndards. . (in the case of companies listed on the stock exchange) in compliance with the listing rules. ------------------------------------------------------------ In particular, all annual reports must contain a balance sheet and a profit loss account with the latest available figures and for comparison purposes--the corresponding figures for the preceeding year. ------------------------------------------------------------ The provisions currently in force ensure a measure of uniformity in presentation. Listed companies also need to include a funds statement--a summary and source of application funds for the year (again with comparative figures). ------------------------------------------------------------ 803. ------------------------------------------------------------ These are accompanied by a directors statement certifying that the accounts give a "true and fair view" and by a report from an external auditor. This chapter briefly describes these documents, but without going into the numerous technical aspects involved in their preparation. ------------------------------------------------------------ 804. ------------------------------------------------------------ Another formal component is the statuaory directors report, which contains replies to certain questions set out in the legislation. ------------------------------------------------------------ Most listed companies also provide non statutory reviews of the company and it's operations and prospects, usually in the form of reports by the chairman and/or the chief executive. These often provide valuable clues--likely changes to dividend rates, further capital raisings, personnel changes new products and so on. ------------------------------------------------------------ Ofcourse bad news may also be buried in small print in one of the notes to the accounts, readers really need to study the whole document. ------------------------------------------------------------ 805. ------------------------------------------------------------ Many companies also use their reports as marketing and public relations tools and for this reason such documents are often produced on glossy paper, with photographs, charts, etc. ------------------------------------------------------------ Analytically minded readers will, no doubt, prefer to focus on the facts rather than aloow themselves too much to be diverted by the pretty pictures. They will also get more out of "cents per share" data than out of the much grander--sounding "millions of dollars" totals for the whole group. ------------------------------------------------------------ Many listed companies have large numbers of relatively small shareholders. It is an unfortunate fact that most such shareholders are apathetic and do not normally bother to read or study the annual reports sent to them. (but see para 833) ------------------------------------------------------------ 833. ------------------------------------------------------------ Many individual shareholders might also prefer to get such an "easy to read" document. Companies which produce a staff version of their annual report often publicise its existence and make it available to shareholders on request. ------------------------------------------------------------ [ Next Thread | Previous Thread | Next Message | Previous Message ] |