Misleading financial information in annual reports (Paperback)

Earlier research shows that users of annual reports often only take a look at the financial graphs in their decision making. This is not strange because these graphs are a quick visualisation of the financial condition of companies. However graphs are not explicitly audited. This means that graph makers might mislead the reader with manipulated graphs to serve their own best interest. That is why there is a great need for international standards on using financial graphs. Based upon a broad literature study, a fundamental list of misleading criteria has been formulated. This list can be very useful for developing international standards, required to assess the use and misuse of financial graphs in corporate annual reports. These misleading criteria have been applied to Dutch listed companies in a research project. The survey demonstrated that there is indeed misleading information in financial graphs within corporate annual reports. This book is very interesting and useful for auditors, editors of annual reports, standard setters and users of annual reports, like shareholders and financial investors. Please do not be fooled and be critical of what you read!