Corporate Reportins Practices, Its Reliability- An Introspection

Abstract

Corporate financial rqjorting is a system of communications between the management and the user groups of financial statements for the purpose of reporting the results of the business activities of a corporate enterprise and also to demonstrate the credibility, accountability and reliability of its working. The quality of information available to users in turn, leads to a more efficient allocation of resources in the economy of a country. The basic need for disclosure is to provide information relevant for making investment decisions and for exercising control over the management. The study of the management to convey reliable information is fulfilled by applying generally accepted accounting principles appropriate to the undertaking. Annual reports of companies should be more informative with a view to bringing out the salient features relating to their workings and performances. However, the disclosure of information through corporate annual reports has undergone important changes from time to time