Financial Accounting Customer Inserts His/Her Name Customer Inserts Grade Course Customer Inserts 7 December 2011 INTRODUCTION Tesco Plc is a global retailer of grocery and other products. The research focuses on Tesco’s statement of financial position…
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One useful content is the report that the company was able to achieve a good set of results in the areas of sales, profits, and earnings per share growth. Another useful content is the increase of the company’s ROCE by 13 percent. The increase brings the company closer to achieving its 2014 benchmarks. Another useful content is restating the United Kingdom as the company’s outstanding core business (http://www.tescoplc.com/). Some of the contents of the chief executive officer’s report are irrelevant. Stating that the company must focus on increasing sales is redundant. All companies strive to increase sales, without exception. Another irrelevant content is the focus on climate change policies. All companies are required to implement environmental laws. (http://www.tescoplc.com/). (b). Chairman’s Statement. Some of the contents of the Chairman’s report are useful. The useful contents include reporting the company’s successful business operation during the 2011 accounting period. Tesco’s Chairman, David Reid, emphasized favorable financial results in the 2011. Another useful content is stating the current year’s dividend is 10.8 percent higher than the prior year’s dividend distribution. Some of the contents of the Chairman’s Review report are irrelevant. ...
(b) Audit Committee Chairman’s Report. Some of the contents of the Audit Committee Chairman’s report are useful. One of the useful contents is focusing on the Audit Committee’s meetings focusing on internal control matters. Another useful content is stating that the Audit Committee meetings are done five times during the year. Likewise, another useful content states that the affected departments cooperated with the Audit Committee. Some of the contents of the Audit Committee Chairman’s report are irrelevant. One irrelevant content is stating the group internal controls and risk management processes are embedded in their businesses. All businesses are required to implement internal controls to reduce or stop fraudulent and erroneous transactions. Another irrelevant content is stating the board is organized each year to one or more of the Group’s international businesses. PART TWO Background Information (a) Property Plant & Equipment IFRS compliance: Property, Plant and Equipment. Tesco Plc records the ? 24,398 m property plant and equipment at cost less accumulated depreciation. IFRS standard Section 17, Property, Plant, and Equipment, requires entities to property, plant, and equipment at cost less accumulated depreciation. Cost includes all amounts paid to put the said assets into operations. The same IFRS concept requires entities to record the same assets at carrying value (net of accumulated depreciation). The assets must be depreciation over each asset’s useful life (Mehta 2010) Intangible Assets. Tesco Plc complies with International Financial Reporting Standards (IFRS). Specifically, Tesco Plc’s ?4,338 m goodwill and other intangible assets amount complies with IFRS no. 3, Business Combinations, which states that must identify
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ess). Though option D is also the correct answer but manufacturing accounts include direct as well as indirect manufacturing costs incurred during the year and these costs are further summed up together and transferred to the trading account. Hence it can easily be said that manufacturing accounts serves to calculate the costs of finished goods produced in a manufacturing business.
60,000. Plant and Machinery Item 1: As per IAS 16, depreciation charge for the current year would be cost divided by the useful life. As such, the charge would amount to ?800,000/5=?160,000. Plant and Machinery Item 2: Assuming that the policy of depreciating plant and machinery for 5 years applies to all items of plant and machinery, the depreciation charge for the year in relation to this item would be ?
FINANCIAL ACCOUNTING ESSAY Table of Contents Table of Contents 2 Introduction 3 Assets 3 Use of Technology and Revenue Generation 4 Asset Valuation 5 Source of Funds 6 Conclusion 7 References 8 Introduction Ford Motor Company is one of the leading automobile manufacturing companies of the world which was founded by Henry Ford in the year 1909 (Yahoo Finance, 2012).
In the final accounts, it is an expenditure that is deducted from the revenue. Deprecation shows the amount of decrease in the past worth of assets. Stakeholders can review this data and identify when to purchase substitute assets for the organization. For instance, an industry frequently replaces its manufacturing equipment at some time throughout its operations.
The increasing scale and internationalization of our sales and purchasing operations makes a significant contribution to our efficiency and profitability, as we progress towards our long-term goal of becoming a truly
Hence it is not necessary for Foster’s to show that there is a current obligation in its financial statements. However due to the past events, it can be construed that there is a possibility of outflow of resources in the future. In this case,
Profitability ratios are used in the determination of a bottom line of a company and the returns it offers the investors. They basically show the overall performance and efficiency of a company. Ratios in this category are dived into
See appendix 1 (Albrecht 2007, pp. 901).
(a): when preparing the profit and loss account, the sales increase by £ 3,000 has been factored in. On a similar note, the quarterly payment of electricity cost and the reduction of the electricity by £
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