The definition of "adversely" can be described in the following way "when decisions, conditions or effects are unfavourable to you" (Collins Cobuild English Dictionary). This question is asking whether the results of the completion of a financial report is harmful to a business' planning and direction, through making strategic decisions. The answer is an initial "yes." However, there are alternative factors that cannot necessarily be represented on a balance sheet, a profit and loss account, or any other type of financial report. Contingent factors such as technology i.e. the nature of the production process involving the ensuing battle between labour and machine-intensive operations, the environment e.g. competition levels, and the structure and type of organisation, have huge effects on future planning. As a result of this, the question has to be asked whether the decision-making is ideally short or long-term. In the short-term, a manager is looking for a profit and a healt!
             hy balance sheet. His/her strategic vision of stability and growth would come in the longer-term. To decide what is the most important requires suitable information. The value of information and who exactly uses it will be discussed so as to try and realise that the effectiveness of strategic decision-making is all based on suitable information. However, the completion of financial reports can achieve, help and aid decision-making if the information is available. So of course, financial reports can help formulate decisions also. "The purpose of the balance sheet is simply to set out the financial position of a business at a particular moment in time" (Financial Accounting for Non-Specialists, page 24). So, from this, strategic decisions regarding future performance can be formulated.
             A financial report will always centre on accounting. This can be defined as "the process of identifying, measuring and communicating economic information to permit informed judg...