What is promo abuse?
Promo abuse (also referred to as promotion abuse) occurs when customers exploit or manipulate a company’s promotional offers.
A directors report is a comprehensive document prepared by a board of directors to help stakeholders understand a company’s financial health and performance.
Usually included within an annual report, the directors’ report addresses aspects such as financial performance, executive compensation, strategic initiatives, corporate social responsibility and risk management.
Directors’ report requirements vary according to the company and industry and are not mandatory in many countries. However, they are a legal requirement in jurisdictions such as Australia, India, New Zealand, the UK and the European Union.
The purpose of a directors’ report is simple: to provide analysts, investors and other stakeholders with the information they need to make informed business decisions.
In most cases, such decisions revolve around whether to continue investing in a company or to evaluate its performance against the competition.
This can be clarified in a few different ways.
Directors’ reports need to disclose financial and non-financial performance over the reporting period in question.
Revenue, profits and cash flow must be disclosed in addition to the company’s broader objectives and how it is working toward them.
Companies with good corporate governance embody fair business practices.
This is facilitated by workplace diversity, independent auditing, progressive compensation models, transparency, accountability, ethical conduct and a strong risk management framework.
Significant events and risks are those that could substantially impact the company’s financial performance, operations and future. Proper reporting in this area increases transparency and enables shareholders to understand the company’s risk profile in detail.
Here are some of the key elements of a directors’ report for Australian companies:
To conclude, let’s take a brief look at a couple of director’s report examples from real-world companies.
Suncorp-Metway Limited’s directors’ report for the financial year ending 30 June 2019 is the first example. The report first tables all directors’ meetings over 2018-19 with a list of attendees and how many times each were present as members of the Board or Committee.
In the principle activities section, Suncorp describes itself as an Authorised Deposit-taking Institution (ADI) that offers banking and related services to commercial, retail, SMEs and agribusinesses in Australia.
Later, in section 11 on likely developments, the company explains that it is committed to growing the SME and agribusiness portfolios in particular. In the case of the latter, this would be achieved by increasing access to credit for drought-affected customers.
Able Australia Services is a provider of disability services and community support. As a healthcare provider, the company’s directors’ report for 2021-22 listed the COVID-19 pandemic as a major negative impact on its revenue growth target.
Principle activities included services to adults with physical and sensory disabilities (and their families) such as respite care, day services, support coordination, community services, transport and emergency care.
Under the section titled “Significant changes in the state of affairs”, Able Australia was required to mention that the JobKeeper short-term subsidy ceased during the 2021 financial year.
In summary:
Promo abuse (also referred to as promotion abuse) occurs when customers exploit or manipulate a company’s promotional offers.
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