The documents popularly known as published accounts because all companies print and publish these annual reports.Sections 210, 216 and 217 of the Companies Act, 1956 make it compulsory for the’ Board of Directors to lay before the company’s annual general meeting a copy of the profit and loss account and balance sheet together with the director’s and auditor’s reports. Al these documents are termed as the annual reports of the company because these are required to be prepared for every year by the Companies Act. These documents gets published.Corporate reporting is another name given to these published accounts because they report to the public about the performance of the company.
15 objectives of Published Accounts :
1. Giving information about the performance of the company during the year usually comparing it with that of the previous year. Information about the performance may relate to production, sales, profit before taxation and profit after making provision for taxation.
2. Giving information about the difficulties faced by the company during the year and steps taken by the company to overcome the difficulties.
3. Information about sources and applications of funds during the year.
4. Information about the product of the company.
5. Giving information about what the company owned and what the company owed at the end of the year.
6. Giving information about the research and development undertaken during the year and the progress made thereof.
7. Giving information about capital projects undertaken by the company in the past but continuing or completed during the year and projects undertaken during the year.
8. Giving information about employees management relations during the year.
9. Giving general information about the economic scene and its effect on the performance of the company.
10. Giving information about role played by the company in discharging the social responsibilities of the business.
11. Giving information about the future prospects of the company.
12. Giving information about the commitments and liabilities for which no provision has been made and the reasons for not making such provision.
13. Giving particulars of any material liability arising after the date of balance sheet but before the adoption of such accounts by directors.
14. Giving information about the employees whose emoluments are more than Rs.3,000 per month.
15. Giving information about utilization of capacity and reasons for under utilization of capacity.