Which of the following is a reason for a PLC to publish its annual report and accounts?

• A. To report to customers on product quality.
• B. To communicate with banks and lenders.
• C. To comply with accounting standards only.
• D. To attract investors who might be interested in the financial position of the company.

Answer: (D)

Publishing the annual report and accounts centers on informing those who might invest in the business about its financial position and performance. By presenting profits, assets, liabilities, and cash flows in a clear, audited format, the company conveys its financial health and future prospects. This transparency helps attract investors, as they can assess returns and risks before deciding to buy or hold shares. It also supports the ability to raise new capital or negotiate favorable funding terms. While banks and lenders may use the report to judge creditworthiness, the broader purpose is to provide information that encourages investment and confidence in the company. Compliance with accounting standards matters, but the main aim is to communicate the financial story to the market to secure funding and investment.