The importance of financial reports in relation the JB Hi Fi is recognised due to their involvement with shareholders which demonstrates sales, profits and all dividends which is driven by good customers service, improved gross margins and on going cost control. With 182 stores in Australia the financial reports enables to review and assess the achieved sales and comparable sale growth which enables to monitor the business in this competitive market. The company’s financial report also provides various financial information that all share holders must use to evaluate a company’s financial performance. Financial reports are also important to the company’s managers and board of directors in which management can communicate with the relevant parties