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Using Graphics in Corporate Reporting sets out basic principles and best practices for preparing graphics. It will help management ensure that graphics are accurately and effectively portrayed in a manner that investors and other stakeholders reading corporate reports can easily understand. This publication also includes a complimentary companion booklet entitled Practical Guidance for Preparing Graphics. Graphical presentations facilitate effective communications with readers because they are usually easy to understand. They can portray complex quantitative data in a simple manner, provide immediate insight into operating, investing and financing activities, and facilitate comparison of specific items. If properly constructed, graphics highlight and clarify significant trends and relationships. Improperly constructed graphics, on the other hand, can distort trends, mislead readers and adversely influence perceptions of corporate performance. This new research report looks at some of the ways in which graphics can potentially mislead readers. Various examples illustrate how improperly drawn graphics can easily misrepresent the underlying data. To help avoid such problems, the report offers a framework comprising a four-step approach for preparing accurate graphics. If the graphics are not accurate, they can erode the credibility of the financial and operating data, undermining their potential to communicate effectively. More Guidance on Using Graphics Graph Distortion Spreadsheet (2009) Graphics Checklist (2008) Graphics Troubleshooter's Guide (2008) Practical Guidance for Preparing Graphics (2008) Using Ratios and Graphics in Financial Reporting (1993) |