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Abstract
Recent corporate collapses have focussed attention on the (un)reliability of
financial information. However, although the agricultural sector, which is
significant globally, is run primarily using the cooperative form, there is
scant research on these users' perception of financial information. Therefore
this paper examines members' readership and understanding of the annual
reports of a large, fertiliser cooperative. The findings show that there is a
lack of readership of the annual report, due to a lack of understanding and a
lack of time. A minority of non-readers trust directors to "do a good job".
Preparers of information should focus on making reports more user-friendly
and evidence suggests that financial information could be released more
strategically using other sources of communication, namely other print
media and the internet.