Financial reporting will be an especially demanding task this year. Auditors, directors and investors will need to pay extra attention to the figures and focus on a number of issues. The role that accounting rules might have played in the origins of the credit crisis has been the subject of controversy. When assessing the liquidity risk, if auditors conclude that going-concern uncertainties remain and that these have been disclosed in the financial statements, they will modify their audit report to include an "emphasis-of-matter" paragraph highlighting the disclosures. The value of embedded derivatives, which previously may have been considered immaterial, could have become significant in the light of recent events. The main purpose of reporting is to give a true and fair view of the financial position of a company, even if that means imparting bad news. Transparency is vital in order to restore market confidence -- expectations for 2008 annual reports will be high in this respect.