Executive Summary In this paper, the concept of financial reporting is thoroughly analyzed. First, it is expected to define what a financial report is, and why millions of companies around the globe are interested in creating the best statements. Second, the roles of the board of directors should be explained and discussed through financial reporting as one of the major financial activities. Finally, attention has to be paid to recommendations that the board of directors must follow to stay effective and competitive. Introduction There are many ways for companies to share and store their information about financial activities, goals, and results achieved. A financial report, also known as a financial statement, is a collection or record of business activities and performance, including the chosen position, past, current, and future cash flows. In his article, Worrell (2017, para. 1) compares financial statements with kales as people know that this product is good for health, but it is usually hard to digest. Despite a variety of attitudes toward this kind of work, financial reports have to be written regularly, and the role of the board of directors cannot be ignored. Although these people are not directly involved in the production of accounting documents, their task is to approve statements, analyze the content, detect problems, and find solutions (Cossin and Lu, no date, para. 4). The goal of this paper is to discuss the effectiveness of the board of directors’ activities in financial reports through the prism of corporate governance concepts and regulations. Problem Statement The major problem within this discussion is the necessity to explain the importance of understanding the role of the board of directors in financial report preparations. According to the US director-centric model of corporate governance, the board of directors obtains broad authority to analyze business affairs, make management decisions, and develop judgments (Wachtell, Lipton, Rosen & Katz, 2019, para. 12). Ineffective completion of their tasks could bring a number of negative results and failures in the business environment. Still, many companies continue working and neglecting rules and regulations. The Effective Board of Directors Role in Financial Reports To be effective, all the directors of the board have to recognize and understand their responsibilities to introduce informative and credible financial statements. There are several federal securities laws within the frames of which an obligation to file annual and periodic reports is defined (Wachtell, Lipton, Rosen & Katz, 2019, para. 52). It is necessary to promoted internal control over these activities, and the board of directors should check if related certifications are present in a team. As soon as control duties are clarified, the board of directors must apply special accounting policies, regarding the position of the organization and local legislations. Their responsibility is to explain what story has to be presented in a financial report and make sure that all the potential writers and contributors to the statement are properly aware and trained. Another significant aspect of financial reporting is to assess the results and continue taking similar steps. Worrell (2017, para. 17) says about the digesting