EFFECTIVE COMMUNICATION 1
Effective communication reporting financial statements
In the dynamic world, effective communication is of utmost essentialpurpose. Today, effective communication is very vital in every aspectof day-to-day transactions: be it in business, or any other type offield, effective communication is a necessity and a mandatory skill.In the business field, communication ensures that organizationsbridge the gap between the shareholders and the management. Thispaper assesses the annual reports of Regal Beloit and ActuantCorporation to reflect how they have utilized effectivecommunication.
Regal annual reports utilize visuals effectively throughout thereports. For example, the report shows pictures and diagrams asindicated on tables 1, 2, 3 and 4. The use of the diagrams andpictures, suggest that the readers and analysts of the financialstatement get interpretation as desired. The Actuant Corporation hasused visuals, different colors, diagrams and sketches in thefinancial reporting (see figures 5, 6, 9 and 11). Use of diagrams andsketches in the financial statements assist the users of thefinancial reports from getting distracted by the monotony of writingsand figures.
The CEO of Regal Company addresses the shareholders about how thecompany is maximizing structure footprint to increase its growth. TheCEO, Mark J. Glibe, of Regal asserts in his letter that the companyis looking forward to invest $80 million dollars in the capitalexpenditure to improve global infrastructure. Here, Mark talks aboutthe future goals of the company. On the other hand, Robert C.Arzbaecher, who has been the CEO of Actuant for the past 14 years,mainly talks about his achievement of the company. In Robert’sstatements, he thanks the shareholders and coworkers for the timethey have worked together. He also mentions the company globalperformance, which is outstanding (see Actuant Report 2013)
Actuant report has generally used extractions at the right side ofthe annual report. The financial report for Actuant Corporationinvolves the use of prose summaries and written information. RegalCompany has used graphs, for example, in pages 14, 22 and 33 of thecompany’s financial year report. Summaries are not used in theRegal’s report, though the use of number-heavy information has beenapplied (Regal Corporation, 2013).
The Regal Corporation financial report is hard to comprehend, forinstance, people expected to use the reports, need to have fullknowledge of the statements and the means of interpretation andanalysis (Regal, 2013). The Actuant Organization has used simple andwell-understood information in the financial report. The reportinvolves more of prose summaries of the information given and fewnumbers.
The Actuant has stated about the disagreement that happened betweenthe accountants and internal audit system. The argument arose due toconflict in the accounting methods used. The company could haveavoided the occurrence of such disagreement, if it had trained itsworkers effectively on effective communication. The Actuant report iseasy to understand compared to the Regal report due to the presenceof prose summaries to interpret the information given. The figuresused by the Actuant Corporation have been properly expounded forthose not familiar with financial statements.
The Regal Company financial statement is interesting to read comparedto Actuant since they have used the special and eye catchinginformation. The information displayed shows lot of visuals, thecompany products and industry pictures (see pages 12, 14, 26). TheActuant financial report involves only graphs and diagrams.
The Actuant report mostly deals with the financial statement of theyear. The Regal statement is detailed, since it involves the presentyear financial statement and future projects of the company. TheRegal Company has detailed information to the shareholders of theirgoal hence, it is more convincing compared to Actuant Company. Inthis regards, the Regal reports have used communication effectivelyin reporting financial statements unlike Actuant reports.
Corporation. (2013, December 5). Annual Reports. Annualreports.com.Retrieved June 17, 2014, fromhttp://www.annualreports.com/Click/15954
Beloit. (2013, December 5). Annual Reports. Annualreports.com.Retrieved June 17, 2014, fromhttp://www.annualreports.com/Click/10610