'Financial Reports are one of the important documents detailing the performance of a company but still many other significant aspects are left out.' Critically analyse the statement.

Financial reporting is the process of producing statements that disclose an organisation's financial status to management, investors and the government. Financial reporting serves two primary purposes. First, it helps management to engage in effective decision-making concerning the company's objectives and overall strategies. The data disclosed in the reports can help management discern the strengths and weaknesses of the company, as well as its overall financial health. Second, financial reporting provides vital information about the financial health and activities of the company to its stakeholders including its shareholders, potential investors, consumers, and government regulators. It's a means of ensuring that the company is being run appropriately. The financial reporting model is like 'looking in the rear-view mirror.' when in fact the road ahead is very turbulent and there are huge impacts on the company, both societal and environmental. It is not necessarily the volume of information, but the lack of a comprehensive story, which is where improvements in corporate reporting are needed. Investors expect information about: Business model and strategy. Intangible factors and sustainability (i.e., economic, environmental, social) commitments. Impacts and performance that affect a company's value today and its ability to create value in the future. Key aspects of corporate governance. Internal controls. Human rights / diversity practices and policies. Key financial ratios. Non-financial reporting is an opportunity to communicate in an open and transparent way with stakeholders. In their non-financial reports, firms volunteer an overview of their environmental and social impact during the previous year. The information in non-financial reports contributes to building up a company's risk-return profile. Non-financial reporting includes- Board's Report: The Board's Report should avoid repetition of information. If any information is mentioned elsewhere in the financial statement, a reference thereof should be given in Board's Report instead of repeating the same. A board's report should typically include information under following heads- Company Specific Information, General Information, Capital and Debt Structure, Credit Rating of Securities, Investor Education and Protection Fund (IEPF), Management. Disclosures Relating to Subsidiaries, Associates and Joint Ventures, Details of Deposits, Particulars of Loans, Guarantees And Investments, Particulars of Contracts or Arrangements with Related Parties. Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo. Details of Establishment of Vigil Mechanism, Material Orders of Judicial Bodies /Regulators. Auditors Report, Secretarial Audit Report and so on. Corporate Social Responsibility Report: A brief outline of the company's CSR policy including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR policy and projects or programs. The Composition of the CSR Committee. Average net profit of the company for last three financial years. Prescribed CSR Expenditure (two per cent of the amount as in item 3 above). Corporate Sustainability Reporting: Comparing performance internally, and between Organizations and sectors External benefits of sustainability reporting can include: Mitigating or reversing - negative environmental, social and governance impacts. Improving reputation and brand loyalty. Enabling external stakeholders to understand the organizations true value, and tangible and intangible assets. Demonstrating how the organization influences, and is influenced by, expectations about sustainable development.