Paper Example on Annual Report: Financial Performance & Strategic Plans

Introduction

Annual reports comprise formal financial statements published on yearly basis and availed to the shareholders and other interested stakeholders to make financial judgements and decision based on the performance. Notably, the reports evaluate and analyze the current year’s operations and communicate the corporation’s strategic plans in the subsequent year. Moreover, the report should focus on financial performance and have an effective organization to enable users of such report to understand and interpret the results thereof easily.

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Describe Organizational Differences that you see in How Each Corporation Discusses Its Annual Performance

The annual reports of Ambac Financial Group Inc. and American Financial Group Inc. have different organization. The Ambac financial group begins its report by giving a brief overview of the company and its subsidiaries and proceeds to mention the values, mission, and vision statement. On the other hand, American Financial Group Inc commence the report with the core values and expression of how important the shareholders are to the organization. The expression of shareholders statement is ideal, but it does not consider the interest of other parties; hence Ambac Financial Group is ideally organized in an effective and in an ‘all-inclusive’ manner for existing and potential stakeholders. Moreover, Ambac Financial Group Inc starts by giving a brief overview of performance highlights of the current period’s financial performance and in within the report giving detailed analysis accompanied by financial graphs and easily interpreted images. On the other hand, American Financial Group Inc gives a detailed presentation of the current period performance after which the current performance is compared to the performance of other previous period and overall industrial performance. Ambac concludes the annual report by comparing its performance with other previous financial years while American Financial Group concludes by communication of investment plan for the next year.

Explain how the Data is or is not Presented for Enabling Shareholders to Draw Conclusions About how Well the Company Performed.

The two financial groups have communicated the financial performance in a precise manner that enables users of the information to draw sufficient conclusion on the performance of the company. Detailed reports my be cumbersome and tiresome to read and draw a viable conclusion; hence the reports have been organized into four major subsections. The reports have explored the current year's performance which is arguable the most area of interest to the shareholders. Further, the reports have drawn a comprehensive comparison of the group subsidiaries and previous year's performance. This gives the users of the information opportunity to evaluate the trend analysis on how the corporation has been perfuming in the previous years and in comparison, to other organizations in the same industry. The reports have also highlighted corrective actions on corporation performance deviations, especially on the subsidiaries. They have communicated the next plans for the shareholders, including strategies to be implemented to increase shareholders value.

Explain what Goals, Challenges, and Plans Top Managers Emphasize in Their Discussion of Results

In both reports, top management has shed insights on the strategies of continued growth and long-term sustainability. The Ambac group have communicated its investment strategies for the coming years. American Financial Group has also highlighted areas of maintaining long-term sustainability and competitiveness in the industry. Moreover, the managers also communicate any changes in management and challenges, including change in taxation policies that negatively impact on performance.

Describe Ways the Format and Organization of Each Report Enhances or Detracts from The Information Being Presented.

The annual report of Ambac Group is organized in a streamlined one-page format that enhances the information being presented effectively and allowing the user to capture all relevant information. On the other hand, America Financial Group report is organized in both doubled and single introductory and conclusion page formats that may distract the user from capturing all the information.