The use and abuse of graphs in annual reports
This study investigate the use and abuse of graphs in a Singapore context. We found that improperly constructed graphs can significantly influence people’s perception of corporate performance. From an analysis of the annual reports of 100 companies listed on Singapore Stock Exchange for the year end...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2013
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/51525 |
| _version_ | 1826130327055106048 |
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| author | Ang, Wan Choon Chew, Khai Leng Lo, Wing Tuck |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Ang, Wan Choon Chew, Khai Leng Lo, Wing Tuck |
| author_sort | Ang, Wan Choon |
| collection | NTU |
| description | This study investigate the use and abuse of graphs in a Singapore context. We found that improperly constructed graphs can significantly influence people’s perception of corporate performance. From an analysis of the annual reports of 100 companies listed on Singapore Stock Exchange for the year ended 1994 or 1995, we have documented the nature and extent of graph usage. The average number of graphs per annual report is 3.3, with turnover, profit and assets as the three most commonly graphed variables. Our analysis also provides statistical evidence of selectivity in the use of graphs. Companies with ‘good performance’ are significantly more likely to use graphs. Non-compliance with the principles of graph construction that results in material measurement distortion occurs in 54% of these graphs, with the underlying data being exaggerated by an average of21.9%. It was found statistically that these measurement distortions are likely to give a more rather than a less favorable portrayal of the company’s performance. We conclude that auditors’ and directors’ responsibilities in this area should be made more explicit. We also express concern over the lack of authoritative guidance to assist auditors in determining whether a graph is materially inconsistent with the accompanying financial statements. |
| first_indexed | 2024-10-01T07:54:39Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/51525 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T07:54:39Z |
| publishDate | 2013 |
| record_format | dspace |
| spelling | ntu-10356/515252023-05-19T05:41:40Z The use and abuse of graphs in annual reports Ang, Wan Choon Chew, Khai Leng Lo, Wing Tuck Nanyang Business School Lum, Kit Wye DRNTU::Business::Accounting This study investigate the use and abuse of graphs in a Singapore context. We found that improperly constructed graphs can significantly influence people’s perception of corporate performance. From an analysis of the annual reports of 100 companies listed on Singapore Stock Exchange for the year ended 1994 or 1995, we have documented the nature and extent of graph usage. The average number of graphs per annual report is 3.3, with turnover, profit and assets as the three most commonly graphed variables. Our analysis also provides statistical evidence of selectivity in the use of graphs. Companies with ‘good performance’ are significantly more likely to use graphs. Non-compliance with the principles of graph construction that results in material measurement distortion occurs in 54% of these graphs, with the underlying data being exaggerated by an average of21.9%. It was found statistically that these measurement distortions are likely to give a more rather than a less favorable portrayal of the company’s performance. We conclude that auditors’ and directors’ responsibilities in this area should be made more explicit. We also express concern over the lack of authoritative guidance to assist auditors in determining whether a graph is materially inconsistent with the accompanying financial statements. ACCOUNTANCY 2013-04-04T06:54:08Z 2013-04-04T06:54:08Z 1996 1996 Final Year Project (FYP) http://hdl.handle.net/10356/51525 en Nanyang Technological University 101 p. application/pdf |
| spellingShingle | DRNTU::Business::Accounting Ang, Wan Choon Chew, Khai Leng Lo, Wing Tuck The use and abuse of graphs in annual reports |
| title | The use and abuse of graphs in annual reports |
| title_full | The use and abuse of graphs in annual reports |
| title_fullStr | The use and abuse of graphs in annual reports |
| title_full_unstemmed | The use and abuse of graphs in annual reports |
| title_short | The use and abuse of graphs in annual reports |
| title_sort | use and abuse of graphs in annual reports |
| topic | DRNTU::Business::Accounting |
| url | http://hdl.handle.net/10356/51525 |
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