Importance of financial reporting arises from the needs of the investors, employees, suppliers and other stakeholders of the company; it arises from the needs of those who are somehow dependent on the performance of the entity. It may not be dependence how you’ve accustomed to see it, i.e. without the company they could not exist, however its dependence in the way that they have results, their everyday life depending on how your company is doing. 

Different stakeholders of the company have understandably different needs and their requirement on the detail of information presented varies. Regardless however it’s important for each of them that the financial statements prepared for a specified period present the financial position and financial performance of the entity true and fair.

It’s important to note that when preparing the statements for the Annual Report, it’s also important that the report itself includes all required notes and information within them to further understand the position and the performance of the entity as it is and as it will be for future periods. Wherever important, any future related events, requirements (i.e. needs for investments) should be also disclosed within the notes as it helps to understand where the business is going.