In the present times, there have been some of the studies related to the use of graphs in case of annual reporting. These researches have largely focussed on the use of data analysis. Though, there are few writers who have considered the role which has been played by the graphs with respect to the financial information which is provided to the shareholders. Most of these researches clearly give the indication that there may be an increase in the overall frequency of graphs which may be there in the annual reports of the financial institutions (Mason, 1985; Wilkins and Lennard, 1988). It may also be important to have the good corporate design (Martin, 1989). There are also a number of studies which may be required to identify the general guidelines which are considered for the purpose of construction of the graphs from the statistical literature related to the graphs. For the use of the graphs in case of financial reports, seven guidelines have been proposed by Taylor and Anderson (1986) for the purpose of development and use of the graphs in the annual financial reports of the companies. The impact of the violations of these guidelines had also been examined in an experimental manner. This was done through the use of the commercial bank loan offers. It was concluded that it is true that there is a distortion in the graphs for the purpose of a more favourable impression in the financial reports.
Nobles (1983) had done the classification of the international accounting system into the large number of forms such as micro, Anglo-Saxon Practices and macro practices which includes the continental European practices. Amidst this, the micro based practices related to the accounting practices may be defined with the help of the weaker influence of the government, stronger profession related to the accounting and comparatively active equity markets. The focus of the same is to have a proper and the fair presentation of the different accounts and to portray the economic reality behind the benefits which may be given to the investors. In general, the macro accounting practices are characterized through the influence of the government in a completely strong manner, weaker profession of accounting and the less active equity markets. In the micro based nations the process of financial reporting is generally geared up for their satisfaction of the investors in comparison to the macro based countries in which there is the need for the alternative annual report users. Because of these kinds of pressures, the representation of the financial performance in case of the annual reports is more and more important in micro based nations in comparison to the macro based nations. On the basis of this classification, the UK may be regarded as the micro based nation. Germany, France, Italy and Spain are considered to have the macro orientation.