As we're seeing the breakup of Citigroup and the similar collapse of AIG, I wonder about how well "annual reports" are doing at telling us what's going on inside a public company. The general categories provided in an annual report are not descriptive enough for companies of this size and scope.
It seems to me that broken-out accounting of any division of a company responsible for more than 5% of revenues (or expenses) would be a very good thing to see in an annual report. In this way shareholders could see what's going on at a more granular level, and it might force executives to quantify bets they're taking with actual numbers.
Post a Comment