Annual Report Graphic Use: A Review of the Literature

Corporate annual reports typically include a narrative section and a financial section. The narrative section is not scrutinized by auditors as the financial section is, yet many readers rely heavily on its graphs to estimate the firm's financial situation. However, the graphs often misrepresent the financial data. To better understand annual report graphs' important role, this article examines more than 25 years of literature related to these four areas: (a) the ways financial graphs are prepared, used, and misinterpreted; (b) differences by country; (c) regulatory influences for accountants; and (d) the parts formatting and media selection decisions play in communication interpretation and persuasion. Across the literature, the author notes consensus that annual report graphs are widely used in many countries and that there is rampant disregard for the guidelines for their accurate, non-misleading presentation. The article concludes with seven proposed directions for future research.
Penrose, John M. JBC (2008). Design>Document Design>Business Communication>Visual Rhetoric
Beautiful Evidence is Edward Tufte's fourth and latest book and both follows and diverges from the directions established with The Visual Display of Quantitative Information (Tufte, 1983), Envisioning Information (Tufte, 1990), and Visual Explanations (Tufte, 1997). Visual Display examined pictures of numbers, Envisioning explored pictures of nouns, and Visual Explanations addressed pictures of verbs. Beautiful Evidence foregoes the 'pictures of' approach and instead establishes the role of evidence as the foundation of reasoning. In some ways, this latest book might have been better positioned as the first book because of its efforts to explain interplays of understanding and reasoning.
Penrose, John M. JBC (2007). Articles>Reviews>Graphic Design>Usability
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