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Descriptive interpretation is a narrative that evaluates and summarizes literature or scientific data. It includes historical background, plot summary, and analysis of themes and style. It is commonly used in annual reports to explain financial data. The author rarely offers personal opinions, but may provide insight into how they perceive the work or data. It helps investors gain insight into business practices and financial positions.
The term “descriptive interpretation” has multiple meanings. Most commonly, it is used to describe an extended narrative that evaluates and summarizes a work of literature or the statistical results of a scientific study. The narration may include several subtitles that interrupt the analysis of the work or study. Opinions are usually left out of the narrative, as the facts and details that helped shape the work or study are elaborated upon. In the business world, descriptive interpretations are commonly used to explain financial data in annual reports.
When a descriptive interpretation is written on a literary work, it presents a brief historical background on the author and a summary of the work. The plot can be summarized and the narrative can highlight the critical points which add to the development of the plot. A descriptive narrative will also explore the author’s use of theme, voice and style which contribute to his uniqueness as an artist. Parts of the interpretation can be devoted to historical facts and explanations of what may have influenced the author and the creative development of the work.
Another field where a descriptive interpretation is commonly used is scientific research. Because the meaning of statistical data can be difficult to convey in purely numerical form, narrative explanations can better reflect how the data should be interpreted. For example, the description may include an explanation of the purpose of the study, how the data was collected, and the significance of the numerical results. It will also provide information about factors that may have contributed to the results, such as increases or decreases in variables that were not considered in the study.
While the author of a descriptive interpretation rarely offers his or her personal opinion on the study or literary work, they may offer some insight into how they perceive it. Included in the narrative is an analysis of how to decipher various aspects of the creative piece or scientific data. As the facts are presented, the interpretations that the author of the narrative has drawn from the work or from the data are revealed. With an interpretation of a literary piece, references are usually used that support the views presented in the narrative.
Companies typically provide a descriptive interpretation of financial statements in their annual reports, using a combination of internal and external references. These summaries help provide investors with further insight into the business practices and financial positions of the organizations. For example, the executive summary and interpretation section of the annual reports reveals insight into the educated opinions of executives. Can explain the qualitative drivers behind the numbers, strengths and challenges of the company.
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