Abstract
The aim of annual reports is to give shareholders and other interested people information about a company’s activities and financial performance. The Social Security and National Insurance Trust (SSNIT) of Ghana churns out annual reports on yearly basis. But some of the annual reports are likely to be more difficult to understand than others and may not be effective if the reader is unable to completely comprehend the contents. Yet, nothing is known about the readability of annual reports produced by SSNIT. Hence, this paper attempts to evaluate the readability of annual reports of SSNIT and establish the trend in readability, covering a period of years (from 2011 to 2015). SMOG readability index was used to compute readability scores and descriptive statistics and ANOVA were used to analyse the data. The results indicate that the annual reports of SSNIT were generally very difficult to comprehend. In addition, the study showed that the readability level of all annual reports was similar. The trend indicates a deterioration in readability of the annual reports over the five-year period. The researcher recommends that authors of the report use plain language to enhance ease in the understanding of the reports.KEYWORDS: SSNIT, annual report, readability, Ghana, SMOG
Highlights
A corporate annual report is a formal communication document comprising quantitative information, narratives, photographs and graphs
The purpose of this article is to extend the literature on this topic by examining the readability of Social Security and National Insurance Trust (SSNIT) of Ghana’s annual reports from 2011-2015
The study examined the readability of annual reports of SSNIT
Summary
A corporate annual report is a formal communication document comprising quantitative information, narratives, photographs and graphs. It seeks to inform shareholders, creditors and others about a company’s business history, its present financial status, and its expected direction. It is essentially a response to mandatory disclosure requirements of a national company or Business Act, and from regulatory agencies. It is a medium for voluntary disclosures perceived to produce net corporate benefits. No matter what the presentation style, organization of content, colour graphics, pictorial choice and overall length, the intelligence that must be communicated via this document is that which will enable diligent readers to perform or confirm ex ante risk-return assessment of the company. Principles of effective communication should be adhered to in disclosing this information
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