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how would the stakeholders of a company listed on the London stock exchange use
the published annual reports and accounts?

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how would the stakeholders of a company listed on the London stock exchange use the
published annual reports and accounts?
The chosen company for this essay is Unilever, a multinational consumer goods company
listed on the London Stock Exchange. Unilever is renowned for its diverse range of products in
the food and beverage, home care, and personal care categories. With a global presence and a
strong emphasis on sustainability and social responsibility, Unilever has garnered significant
attention from various stakeholders interested in its operations and performance.

Stakeholders are individuals or groups that have an interest or concern in the activities
and performance of a company. In the case of Unilever, key stakeholders include
shareholders/investors, employees, customers, and regulatory bodies. Shareholders play a crucial
role as they provide capital to the company in exchange for ownership stakes. Employees
contribute to the operational success of the company while customers drive revenue through
product purchases. Regulatory bodies oversee compliance with laws and regulations governing
business practices.

Annual reports are comprehensive documents published by companies at the end of each
fiscal year to provide stakeholders with detailed information about their financial performance
and position. These reports play a vital role in transparency and accountability by offering
insights into the company's strategic direction, risks, opportunities, and overall health.

Financial statements form an integral part of annual reports as they present financial
information in a structured manner. The four main financial statements include:
1. Balance Sheet: Provides a snapshot of the company's assets, liabilities, and equity at a
specific point in time.
2. Profit and Loss Statement (Income Statement): Details revenues earned and expenses
incurred over a given period to determine net profit or loss.
3. Cash Flow Statement: Tracks cash inflows and outflows from operating, investing, and
financing activities to assess liquidity.
4. Income Statement: Summarizes revenue generated against expenses incurred to
calculate net income.

In today's dynamic business environment, companies like Unilever face various

contemporary accounting issues that impact their reporting practices. These may include changes
in accounting standards such as IFRS updates or emerging trends like sustainability reporting
requirements driven by ESG considerations.

Stakeholders utilize annual reports for different purposes based on their interests:
- Shareholders/investors analyze financial statements to evaluate profitability, solvency,
liquidity ratios for investment decisions.
- Employees review corporate governance structures outlined in annual reports to assess
organizational stability.
- Customers may look at sustainability initiatives disclosed in reports to gauge brand
values alignment with personal beliefs.
- Regulatory bodies scrutinize compliance disclosures within annual reports to ensure
adherence to legal requirements.
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In conclusion,
Unilever's stakeholders leverage annual reports as valuable sources of information for
decision-making processes related to their engagement with the company.
By examining financial statements within these reports along with addressing
contemporary accounting issues facing Unilever,
stakeholders can gain deeper insights into its performance,
strategic direction,
and commitment towards sustainable practices.
Ultimately,
annual reports serve as essential communication tools that foster trust,
transparency,
and accountability between companies like Unilever
and their diverse stakeholder groups
in today's complex business landscape.DisplayMember
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