Nobody downloaded yet

Financial Accounting at Tesco Plc - Case Study Example

Comments (0) Cite this document
The research focuses on Tesco’s statement of financial position. The research includes financial statement analysis of the company’s 2010 accounting period and 2011 accounting period. The financial statements indicate Tesco Plc fared financially well during the 2010 and 2011 accounting periods…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.5% of users find it useful
Financial Accounting at Tesco Plc
Read TextPreview

Extract of sample "Financial Accounting at Tesco Plc"

Download file to see previous pages 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 and fair value the intangible assets amortization charges and costs. IFRS defines an intangible asset as lacking physical substance and are not financial instruments. Likewise, IFRS requires entities can identify the intangibles. To identified, the intangible asset can be bought or sold. Goodwill is one of Tesco’s IFRS- based intangible assets (Kieso, Weygandt, & Warfield 2011).
Inventories. Tesco Plc’s 2011 inventory is £ 3,162 m. Inventories are valued at lower of cost and fair value less selling costs. IFRS states that market price is equivalent to the inventories’ net realizable value. IFRS does not approve of U.S. GAAP’s use of the ceiling and floor factors in computing for market prices. IFRS agrees with U.S. GAAP in terms of recording the cost of the inventory. Tesco Plc’s inventories include the goods displayed in the company’s sales counters. The company’s inventories also include properties in the course of development. Tesco Plc complies with IFRS concepts (Kieso, Weygandt, &Warfield 2011).
Property, Plant, and equipment. The company’s £ 24,398 m property plant equipment amount complies with International Accounting Standards. IAS 16 mandates that the company recognizes the cost of the property, plant and equipment amount. The carrying value is the resulting from the depreciation expenses from the cost of the property, plant, and equipment accounts (Kieso, Weygandt, Warfield 2010).
Intangibles. Tesco records its intangibles in compliance with IAS 38, Intangible Assets. The standard mandates all entities to record all intangible assets that include software, licenses, customer relationships, contracts, and brands at cost. The intangible cost is amortized over the straight-line basis during the intangible assets’ remaining useful life. In addition, management must record the research and development as expenses, not amortized over the remaining life of the asset involved. The standard requires that research costs should be expensed outright and development costs can be capitalized (intangible assets) if the asset will generate future economic benefits (Nikolai, Bazley, Jones 2009).
The inventory value complies with IFRS’s implementation of IAS no. 2, measurement of inventory. The standard requires entities to record their inventories at lower of cost or net realizable value. Cost is equal to the purchase cost, cost of conversion, and other costs incurred in bringing the inventories to their present location (Esptein 2008). 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. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(Financial Accounting at Tesco Plc Case Study Example | Topics and Well Written Essays - 2000 words, n.d.)
Financial Accounting at Tesco Plc Case Study Example | Topics and Well Written Essays - 2000 words. Retrieved from
(Financial Accounting at Tesco Plc Case Study Example | Topics and Well Written Essays - 2000 Words)
Financial Accounting at Tesco Plc Case Study Example | Topics and Well Written Essays - 2000 Words.
“Financial Accounting at Tesco Plc Case Study Example | Topics and Well Written Essays - 2000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Financial Accounting at Tesco Plc

Financial analysis of Sainsbury plc and Tesco Plc

...? Detailed Proposal The paper will provide a comparison of financial analysis of two major retailer companies in UK ly Sainsbury plc and Tesco Plc. Both these companiers are the leading food retailers in United Kingdom and they are the well known public listed companies in UK. The paper will highlight the Key features and the current strategies directed by the companies followed by the Calculation of financial ratios for each company, and Compare with earlier years, that allow to judge the financial performance and position for the company, and to interpret if the company's assessment of its own performance as shown in the...
8 Pages(2000 words)Essay


...largest grocery retailer on the international level References Alexander, D., Nobes, C. (2007) Financial Accounting 3rd ed. Essex: Pearson Education Limited. Baker, HK & Powell, G. (2009). Understanding Financial Management: A Practical Guide. New York: John Wiley & Sons. Beynon& Porter, A. (2000). Valuing Pharmaceutical Companies. New York: Woodhead Publishing. Bini, L & Dainelli (2011).The Informational Capacity of Financial Performance. London: Maffioli Editore. Gruen, R. (2005). Financial Management in Health Services. New York: Open University Press. Morning Star Financials. (2012). Growth, Profitability and...
12 Pages(3000 words)Essay

Tesco Plc Strategy Analysis

...? Tesco Plc Strategy Analysis Tesco is one of the largest supermarket retail stores in the world, operating around 2,318 stores and employing over 300, 000 people. It is based in the UK but operates stores in the rest of Europe, USA and Asia. The retail store also provides online services through its subsidiary (Data Monitor, 2004). It is the largest in the UK and operates under four banners: Extra, superstore, Metro and Express. The retail store began as a food store but has since diversified into other areas as clothing and non-food products. It also operates financial institutions as a joint venture with the royal Bank of Scotland (Data Monitor, 2004). Mullins (2010) says that a marketing strategy primarily focuses... they are...
3 Pages(750 words)Coursework

Tesco Plc

... market. This report seeks to analyze the annual report of Tesco Plc for the year 2011 to investigate the way it accounts for its social, ethical and environmental impact. The report further compares the performance of the company with other companies in terms of environmental policies. Another aspect that is considered in this report is the nature of reporting that the company uses and recommendations for future strategies to improve on the presentation of the company’s stakeholder’s strategy. 2. Business Review of Tesco Plc in 2011 Tesco is the most dominant retailer in the United Kingdom with a market share of about thirty percent. The company has a presence in several countries. It reported revenues in excess sixty billion... in the...
9 Pages(2250 words)Essay

Tesco Plc Financial Analysis

..., C., 2005. Business Accounting And Finance for Non-Specialists. 2nd ed. New York: Cengage Learning EMEA. Great Britain. Dept. of Industry; Great Britain. Dept. of Trade, 1987. British business. London: H.M. Stationery Off. J.G.Siegel, N.Dauber & J.K.Shim, 2005. The Vest Pocket CPA. New York: Wiley & Sons. Kontoghiorghes, E.J. & Gatu, C., 2007. Optimisation, Econometric and Financial Analysis. Illustrated ed. New York: Springer. Riahi-Belkaoui, A., 1999. Capital Structure: Determination, Evaluation, and Accounting. Quorum. Tesco, 2012. Tesco PLC. [Online] Available at: HYPERLINK...
8 Pages(2000 words)Coursework


...? Tesco Plc Tesco Plc is a multinational general merchandize retailer whose headquarters are in Cheshunt, Hertfordshire in England. Basing on the profits it makes annually, it is ranked as the world’s biggest retailer after Wal-Mart. It has grown over the years and has now stores that are spread across 14 countries in Europe, Asia and North-America. John Cohen came up with the company in 1919 where it started as a group of market stalls. The expansion process began in 1939 whereby it opened around 100 stores across the country (Tesco, 2013). As the business grew, the company decided to diversify its products into areas like retailing clothing,...
4 Pages(1000 words)Essay

Tesco Plc

..., software, electronics and music. Tesco also operates on e-commerce site with over 500,000 registered users in the UK. This division makes nearly 300,000 CD, video and DVD titles. The firm also operates the Tesco Direct catalog and the Tesco Babyclub. Tesco is involved in the financial services business, serving nearly 1.5 million customers. Services offerde by the company in clude saving accounts, online banking, and travel, house and pet insurance policies. In early 2006, Tesco telecom began offering a cost effective, easy to use Internet phone. Also in 2006, Tesco...
9 Pages(2250 words)Essay

Financial Forecasting TESCO Plc this will expose it to the burden of contractual payments. Conclusion An analysis of the forecasted financial statements of Tesco Plc indicates that the revenue of the company will move as per the compounded annual growth rate of the previous years. Despite the rise in the revenue, the profitability position of the company is expected to deteriorate on account of poor cost management. Reference MSN Money. 2010. Industry. Financial Condition. Available at: [Accessed on April 3, 2010]. Nelson, L.S. 2008. QuickBooks 2009 All-in-One For Dummies. Wiley...
6 Pages(1500 words)Essay

MANAGEMENT ACCOUNTING AND FINANCIAL MANAGEMENT 'The role of Management Accountants at Tesco Plc'

...Management Accounting and Financial Management The Role of Management Accountants at Tesco Plc Executive Summary The objective of this study was to assess the importance of management accountants in the current scenario of organizational behavioral performances. In accordance, the example of Tesco Plc was considered in order to obtain a critical understanding of the roles played by management accountants today and its implications in maintaining organizational sustainability in the 21st century context. A varied range of secondary sources were used in this study, which helped identifying the diversified roles and the complexities associated with the responsibilities of management accountants in a large-sized company such as Tesco... is...
10 Pages(2500 words)Essay

Tesco PLC Marketing Strategy

... Marketing Research Background Tesco PLC is one of the largest superstores with more than 2100 superstores in UK, US and South East Asia. Revenues for 2007 were £42,633.4m (Tesco 2008). The firm is a retail chain selling mainly groceries but it has expanded into other products like furniture, non food items, financial services and telecommunications etc. Tesco also expanded globally and is trying to establish itself in the US. However, the chain is facing tough competition in the US by rival Wal-Mart. Also, Wal-Mart’s subsidy Asda has entered the UK market posing tough competition for Tesco. Coupled with that, German chains Aldi and LDLI are discount chains which are giving a price competition to giants like Tesco and Wal-Mart... for...
27 Pages(6750 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Financial Accounting at Tesco Plc for FREE!

Contact Us