Evaluation of the chairman report for AL MAZAYA HOLDING CO Essay

Evaluation of the chairman report for AL MAZAYA HOLDING CO - Essay Example It implies that gap between the auditor’s signature and that of the chairperson was one month. One month is a short time and it enhances the timeliness of the company’s chairperson report thus improving the relevance of such information to users such as investors. The precision of the chairperson’s report enables the users of such information to base their decisions on current information rather than outdated information. Thus, it is easy for users of financial information to assess how much the company’s financial situation has changed since the publication of the financial statements. In this case, the information presented in the chairperson’s report reflects the information contained in the financial statements because of its precision. The balance between past information and future information is 92.3 percent. The chairperson’s report focuses more on past information than future information. For instance, he reflects on the promise the company made at the beginning of 2013 and reminds the reader that the company has fulfilled its promise. Additionally, the report primarily focuses on the company’s achievement in the year 2013. Approximately twelve sentences talk about the past while on the contrary only two sentences discuss the future. The chairperson is obsessed with the past because the company recorded stellar performances in its operations. For example, the company achieved a 2000 percent increase in profits. It is amazing to see a company record such performances and investors must be glad that their investments yielded high returns. Past information is important for the company because it attracts new investors who will be willing to buy shares in the company because of its stellar record. Ho wever, there should be a balance between the past and the future so that investors can acquaint themselves with where the company is coming from and where it is heading. Thus, the chairperson fails to give a