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Had a welcome surprise over the weekend when re-discovering Google’s annual report for the year to end December 2014.
It is a reminder of how differently the Americans view shareholder communication.
For many JSE listed companies, annual reports have become marketing documents for “stakeholders” rather than serving their primary purpose of updating their owners. US companies are a whole lot more direct.
There isn’t a single photo in the Google annual report; simply a list of the directors inside the back cover.
Its 84 pages are focused exclusively on the business of the company – Part One deals with what Google does, how it generates profits and risks to these; Part Two reports the past year’s financial results with explanation about the important numbers.
Best of all, the Google report is written in understandable language – avoiding the accountant speak which contaminates turgid offerings from so many JSE listed companies.
As Confucius put it: “Life is really simple, but we insist on making it complicated.” Especially when consultants get involved. Keeping it simple and direct would encourage more South Africans to buy JSE-listed shares.
From Biznews community member Charmane Russell
I could not agree with you more. Even as a consultant. Every report is now starting to look the same and say the same things. And we know that the analysts and shareholders are not using them.
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