Nobody downloaded yet

Financial Reporting - Coursework Example

Comments (0) Cite this document
Name: University: Department: Lecturer: Introduction The key conceptual framework concepts are developed by the Sustainable Accounting Standards Board and some of them include materiality concept, accrual concept, financial analysis and others that are used to analyze and report the financial reports (Taylor 1996)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.3% of users find it useful
Financial Reporting
Read TextPreview

Extract of sample
"Financial Reporting"

Download file to see previous pages Due to this increase in performance of the financial statements of the company, the earnings per share increased as well as the dividend payout ratios went up with a coverage of 2.8 times for the full year, which is the shareholder’s interest in the organization. As compared with the market ratios from IHG company, Next company shown a growth in all its financial aspects. The accounts have been presented in accordance with the IFRS 7 and 12 which requires disclosure of interest in other parties IFRS 10 which requires consolidating the group accounts and IAS 1 to 9 which talks of all the disclosures. The disclosures of the segments are contained in IAS 14 but superseded by IFRS 8 which requires every segment to be disclosed separately (Weygandt 2012). Since the exceptional items are material in nature, the materiality concept applies and that is the reason why they are disclosed separately since they are matters which might have an impact on the financial statements. They are divided into continued and discontinued exceptional items. Ratio Analysis: Liquidity Ratios This is a ratio that measures the firm’s ability to meet its obligations financially. Historically these ratios have been used to measure the overall health of organizations. Their usefulness is being diluted as the modern companies Next PLC are holding fewer current assets to generate revenue. However, these ratios remain a good measure in this industry because the hotel industry relies on huge amounts of current assets to generate income. The meaning of these ratios is measured based on the relevant industry norms (Clatworthy 2005). Current Ratio Current Ratio = Total Current Assets Total Current Liabilities Account 2013 2012 Increase/Decrease Total Current Assets 1,207.8 1,139.9 Total Current Liabilities 816.0 742.4 Current Ratio 1.48 1.53 -0.05 From the above analysis, Next PLC is a company which can meet its short term obligations in both year 2013 and year 2012, however at a closer look, it shows that it has decreased its ability to meet these short term obligations in the year 2013 which is a fall back from the previous period. A further identification is that the group has disposed a lot of its current assets and also paid more of its obligations in terms of liabilities. In further analyzing the cash position of the group in the cash flow statement, the group has covered more of its expenses on the revolving cash flows from operations, which is a healthy indication of the organization's ability to operate in the foreseeable future (Gibson 2012). Quick Ratio Quick Ratio = Cash and Equivalents - Inventory Total Current Liabilities Account 2013 2012 Total Current Assets 1,207.8 1,139.9 Inventory 331.8 371.9 Total 876 768 Total Current Liabilities 816.0 742.4 Current Ratio 1.072 1.034 This ratio is more accurate than the current ratio since it reveals how the company can meet its short term liabilities without having to dispose its stock. And in this case of study, the company still remains stable and even better since the stock levels are low and that means the company can meet its short term financial obligations with ease. In year 2013, it indicates that the company did better than year 2012 just like the previous ratio. Any ratio that is positive means that the company can meet its obligations and any figure that is negative means that th ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Financial Reporting Coursework Example | Topics and Well Written Essays - 1500 words”, n.d.)
Financial Reporting Coursework Example | Topics and Well Written Essays - 1500 words. Retrieved from
(Financial Reporting Coursework Example | Topics and Well Written Essays - 1500 Words)
Financial Reporting Coursework Example | Topics and Well Written Essays - 1500 Words.
“Financial Reporting Coursework Example | Topics and Well Written Essays - 1500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Financial Reporting
...?Financial Reporting Executive Summary This assignment reviews the accounting standards adopted by Early Learning Services Limited in the preparationof the financial statements. In the wake of the recent events transparency in financial reporting has become an important issue. Here it has been highlighted as to whether the company complied with any revisions or changes in accounting standards like AASB 101; and other accounting standards relating to intangible asset; provisions and contingent items etc. Any change adopted by the company in financial reporting for 2009 over the previous year has also been discussed. Table...
10 Pages(2500 words)Essay
Financial Reporting
...? Introduction Financial ments of the firms provide the key information to the shareholders regarding the performance of the firm over a certainperiod of time. Not only investors and shareholders get an insight into the overall performance of the firm but different disclosures made in the financial statements offer stakeholders a clear and concise view of the where the firm is heading and in what affairs it is involved. Through financial statements, management provide the details of the accounts and any explanations and details which become part of the accounts as to how the different issues were treated and under what circumstances. Financial reporting...
4 Pages(1000 words)Essay
Financial Reporting
...?Financial Reporting Introduction Intercontinental Hotels Group Plc (IHG) is a British multinational company in the hotel industry. It is headquartered in Denham, UK, and it is the largest hotels company globally operating seven brands. It has over 4,500 hotels in over 100 countries. 10 hotels are managed directly, 652 of the hotels are managed by the company while an approximate of 3,900 hotels are under franchise agreements. The brands offered include, candle wood suites, crown plaza, holiday Inn, Even, Hotel Inn Express, Hotel Indigo, Intercontinental, Hualuxe and Staybridge Suites (IHG Annual report 2011). InterContinental Hotels primarily listed on the London Stock exchange and is a...
6 Pages(1500 words)Essay
Financial Reporting measured, it is very difficult for accountants to include such functions on the balance sheet. The difference between accounting for financial and physical objects is that one type can be measured on a scale while the other is more ambiguous. Financial objects have value because we give values that can be assigned to specific objects. For example, for an investment that loses money, it is easy to track that flow because we can compare the end result with the start value. The difficulty with accounting for physical objects is that often there is no ways to place value on them and also it may be hard to find a starting value in some instances. Activity 2 In this cartoon, the difference between the two...
3 Pages(750 words)Essay
...assessment, several risks has been identified and assessed such as firm related risks, currency risks, capital structure risks and market risks. The Kerry Group PLC actively follows the corporate governance directives issued by the government for the corporation registered in the Ireland. Being a premium company listed on the stock exchange, the company is required to follow the directives of the corporate governance requirements. The company has stated in its latest financial report that it has complied with all of the provisions and directives of the corporate governance as per the regulations. The company has always remained sincere to its corporate social responsibility and has always strived for it....
14 Pages(3500 words)Assignment
Financial Reporting
...?Coca-Cola Company Financial Reporting From an analysis of the balance sheet of The Coca-Cola Company for the year ended December 31, and December 31, 2012, it can be noted that the assets in the company’s current assets are listed in the proper order (The Coca-Cola Company, 2013). In common financial reporting, the assets in the current assets part of the balance sheet should be listed starting with the most liquid to the least liquid form of current assets. In this case, cash and cash equivalents are the most liquid current asset, followed by short-term investments, and assets held for sale are the least liquid current assets. The assets listed in Coca-Cola Company’s balance sheet are classified into two main categories, current... changes...
3 Pages(750 words)Assignment
Financial reporting
...Financial Reporting Case study: Summary The collapse of Lehman Brothers Holdings, Inc. (Lehman) unmasked the presence of problematic loopholes in the accounting treatment for repos. Although Lehman filed for debtor-in-possession reorganisation (Chapter 11) in the United States of America, yet its financial shockwaves severely hit the global economy, prompting the International Accounting Standards Board (IASB) to reconsider its accounting framework towards the International Financial Reporting Standard (IFRS) 7: Financial Instrument. At the same time, the Securities and Exchange Commission (SEC) issued new additional disclosure...
6 Pages(1500 words)Case Study
Financial reporting
...Financial Reporting Table of Contents Limitations of historic cost accounts 3 Advantages and criticisms of General Purchasing Power 5 Advantages and criticisms of Current Cost Accounting 6 6 Reference List 7 Limitations of historic cost accounts Historical cost is a widely acknowledged and accepted accounting approach, which requires accountants to report every item within the financial statements on the basis of their historical (original cost). It basically refers to the actual cost borne by the company, while acquiring the item. It does not by any means represent the fair market value of an item (Barnes, 2000). This suggests that if a building is purchased by a company, then historical cost of the building is reported within... the...
4 Pages(1000 words)Assignment
Financial Reporting
...Financial Reporting Task Table of Contents Financial Reporting Table of Contents 2 Introduction 3 Tesco’s financial performance 3 Investment ratio 3 Profitability ratios 4 Liquidity ratios 5 Effeciency ratios 6 Gearing ratios 7 Growth ratios 8 Non-financial ratio 9 Accounting policies for goodwill and intangible assets 10 List of References 11 Appendix 1: Ratio Calculation. 12 Introduction Tesco PLC is a Supermarket chain store located in the United Kingdom. The business was established in 1919 by Jack Cohen. The industry in which the company operates is food retail. The Supermarket provides both fresh and ready-made foodstuff that comes in varieties. The business operates in twelve countries globally with over 530,000 employees... as is...
7 Pages(1750 words)Coursework
Financial reporting
...sheds light on the US automotive industry which experienced sale of 15,600 vehicles in 2013. The report further assesses the past financial performance of CarMax and AutoNation. Among the financial aspects that would be analysed include, the revenue and working capital. Additionally, the report analyses the strategies that are used by both AutoNation and CarMax to maintain a competitive edge at the market. Table of Contents Executive Summary 2 1.0 Introduction 3 2.0 The Automobile Industry Economic Characteristics 4 3.0 The Company Strategies 8 3.1 The AutoNation’s Strategy 9 3.2 The CarMax’s Strategies 12 4.0 The Financial Statements 15 4.0...
15 Pages(3750 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 Coursework on topic Financial Reporting for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us