Regulators must act to ensure financial reports present key information in an easily understandable manner, it has been claimed.
Steven Maslin, chair of the partnership oversight board at Grant Thornton, explained that many investors find the documents too complex to be of any real use to them.
Mr Maslin said: "Investors frequently tell us that annual reports are poorly structured [and] the complexity and volume of information often obscures key messages."
As many firms fail to place financial information in the context of a business strategy it is often hard for investors to get a view of the whole picture, he added.
Mr Maslin called on regulators to ensure rules on financial reporting are designed to promote clarity.
His comments came after Grant Thornton issued its response to the Financial Reporting Council's (FRC's) discussion paper on the issue.
Last week, the FRC called on businesses to improve their narrative reports.
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