Bin the clutter

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. Which of the following observations was not one observed by the Financial Reporting Council in the UK as regards 'clutter' in annual reports?

  2. Which of the following is not a reason as to why annual reports should only contain relevant and necessary information?

  3. Which of the following is a significant cause of 'clutter' in annual reports?

  4. How can the 'clutter' in small and mid-cap companies be reduced?

  5. What can be the result of SME's being forced to comply with extensive regulations regarding disclosure of activities?

  6. There are behavioural barriers to reducing 'clutter'. Which of the following behavioural characteristics is unlikely to be a barrier to reducing 'clutter'

  7. Explanatory information may not change from year to year but it nonetheless remains necessary to an understanding of certain aspects of the report. What is the main disadvantage of disclosing increasingly more information in an appendix to the annual report?

  8. Which of the following accounting concepts is seen as the driving force of disclosure?

  9. IAS 1, Presentation of Financial Statements, deals with the general principles of disclosure under IFRS. What does IAS1 require in terms of disclosure in annual reports?

  10. Which of the following actions could reduce some of the unnecessary clutter in annual reports and still ensure fair presentation?