Discuss the implications of the increasing length of annual reports Coursework

Discuss the implications of the increasing length of annual reports - Coursework Example Information on market prices is used as a reflection of publicly available knowledge concerning a company. Financial reporting of market prices enhances efficiency through provision of more disclosure despite some anomalies that occur in the process of reporting. Experimental literature supports the fact on displaying financial information such as comprehensive income, which have influence on investor’s decisions. Consequently, financial statistics provide useful facts such as earnings and financial ratios that at times prove more costly to extract since they are never revealed by market prices. However, demand for financial information arises from the requirements posed by pending decision task. Such demand requires some level of information processing capacity that is determined by simplicity in presentation and information load (Deloitte, 2010). According to Hall (2009) sheer volumes of disclosures within International Financial Reporting Standards (IFRS) has substantially increased the length of annual reports (Morunga and Bradbury, 2012). There are adequate results showing the impact of information overload on processing strategies and outcome of annual reports. The increase in length is further attributed to increase in the size of financial section of the entire report. There is substantial increase in the notes explaining the accounts and accounting policies. Information on IFRS reconciliations and accounting policies on transition accounts for nearly over 5% of annual reports despite the items not necessarily required on a continuing basis. Elimination of such transition items still gives space for accounting policies as well as note disclosures under IFRS which consumes close to 20% of total space. Therefore, there is significant proof that different components of accounting policy such as general, IFRS transition, f inancial instruments as well as