My last post I discussed the financial statements that are located in the annual reports. I thought it would be prudent to add my thoughts on the marketing spin that is added into annual reports and mention a financial review article that is both funny and most likely accurate depiction of some of this spin.

Why do they even add this extra information and highlight the information that is located in the financial statement? Also, as far as I know it also isn’t a requirement to add all this superfluous information that isn’t even a regulatory requirement.

It appears this has everything to do with shareholders and other investors. Shareholders would want to know what is going on and what the company is doing about it so they can make informed decisions. Having an easy to read summary of the numbers would certainly help to break down what the company is doing now and into the future.

The downside to relying on this is details can often get buried in the jargon, and possibly even be misleading.

Attached is an article from the Financial Review by James Thomson, which is both satirical and possibly true at the same time; enjoy. (Thomson, 2019) Link Attached