Interest in the Techniques

TO: Ms. Albrecht

FROM:

SUBJECT: Analyzing Annual Reports

DATE: November 14, 2013

Last time we spoke, you expressed interest in the techniques that companies use to convey their financial information through an annual report. We have analyzed annual reports from varying industries to compare how different companies appeal to their specific audiences. We chose annual reports from H&M, HP, and the Bank of Russia, as well as McDonald’s 10-K to better understand how the financial information is differentiated to appeal to their target audiences. The following analysis compares both verbal (spoken) aspects as well as nonverbal (unspoken) aspects of the individual reports.

H&M

Nonverbal

The first annual report to be analyzed is H&M representing the clothing industry. One aspect immediately noticed is the typography used throughout the report. There is a switch between serif and sans serif to signify the particular information being reported. Serif typography, text with small beginning and ending lines on each letter, is used for the articles or lengthy sections of type. Sans serif typography, text without these small strokes, are used for the headings and the bold prices listed in the pictures. Sans serif then helps emphasize the sections where the reader can learn more about the fashion of the company rather than the actual financial state.

The layout is unique for an annual report and resembles a fashion magazine. Columns and headings are placed at random spots among the pages and pictures forcing the reader to be more engaged in what they are looking at. Within these columns, the text is aligned on the left, but jagged on the right, which is the standard setting used for most typed items.

As for the spacing, the space between the lines becomes smaller as the report goes into talking about the financial information. This moves away from the magazine look which has lines with bigger spacing to account for the emphasis on quotes or headings. The lengths of the lines in the columns appear to be 32 to 64 characters which help make it more appealing to the eye as well.

A final nonverbal aspect is graphics. There are few graphics placed in the report and they are placed in the middle to the end of the report among the information that may be included on the 10-K. They are also very simple with little color to just have the reader focus on the information, again moving away from the magazine style.

Verbal

Next, the verbal aspects of the report are not as prominent as the nonverbal. The report is direct in that it starts with their business concept and uses active