This paper focused on reemphasizing the original purpose of the annual report which lies in its use as a medium of communication between preparers and users; whereby the former report stewardship while the latter evaluate stewardship to make buy/sell/hold decisions. To achieve this objective, opinions were collected from a sample of 150 preparers and users of annual reports, while the contents of 100 annual reports from 20 listed firms over a period of 5 years were also analyzed. The result showed that the preparers and users of annual reports agree that such content as advertisements and images, as well as the undue use of aesthetics, neither relate to the reported information nor enhance users’ understanding of what is reported. Observations showed that the selected annual reports contained unrelated information elements such as advertisements, structured images and galleries and unguarded use of aesthetics. A yearly comparison across reports also revealed a steady rise over time. This paper concludes that the annual report is fast losing its relevance as modern designs indicate a paradigm shift in its purpose. Therefore, this paper recommends the need for strict regulations regarding the overall design and presentation of annual reports.
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