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Performance reporting and performance appraisal

6.2 Limitations of financial reporting information

 It is historic, rather than forward-looking.

 It only provides financial information.

 There will be a delay before filing, which reduces relevance.

 The information is highly aggregated

6.3 Limitations of comparing different entities

 Entities use different accounting estimates

 Entities use different accounting policies

 Entities have different accounting periods

 Entities differ in size

 Regulatory systems differ between countries

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