Burberry clothing company UK - Coursework Example

Burberry Clothing Company UK Using the copy of Burberry Companys Annual Report and Financial ments (this will be for years 2012-2013), find the Statement of Shareholders Equity and paste it as an image into your report.Group Statement of Changes in EquityYear to 31 March 2013 £mYear to 31 March 2012 £mCash flows from operating activitiesOperating profit 345.8 376.9Operating loss from discontinued operations – (0.3)Termination of licence relationship 6 71.3 –Depreciation 94.5 74.3Amortisation 16.7 13.3Net impairment charges 11.3 6.8Write-down of assets held for sale – 4.

5Loss on disposal of property, plant and equipment and intangible assets 0.1 0.3Fair value losses/(gains) on derivative instruments 2.0 (5.7)Charges in respect of employee share incentive schemes 24.9 31.8Increase in inventories (39.2) (61.8)Increase in receivables (32.0) (17.6)Increase in payables 27.6 60.0Cash generated from operating activities 523.0 482.5Interest received 3.5 2.7Interest paid (2.6) (3.3)Taxation paid (99.0) (108.2)Net cash generated from operating activities 424.9 373.7Cash flows from investing activitiesPurchase of property, plant and equipment (158.1) (126.1)Purchase of intangible assets (17.8) (27.0)Payment to terminate licence relationship 6 (144.1) –Proceeds from sale of asset held for sale 27 0.

1 –Acquisition of subsidiaries, net of cash acquired (1.0) (23.5)Net cash outflow from investing activities (320.9) (176.6)Cash flows from financing activitiesDividends paid in the year 10 (113.5) (95.9)Dividends paid to non-controlling interest – (3.3)Capital contributions by non-controlling interest 0.4 4.9Issue of ordinary share capital 1.0 0.6Sale of own shares by ESOP trusts – 0.1Purchase of own shares by ESOP trusts (46.4) (60.7)Repayments of borrowings (1.3) –Net cash outflow from financing activities (159.8) (154.3)Net (decrease)/increase in cash and cash equivalents (55.8) 42.8Effect of exchange rate changes 12.8 (2.4)Cash and cash equivalents at beginning of year 339.6 299.2Cash and cash equivalents at end of year 296.6 339.62.

Study the statement very carefully and explain in as much detail as you can what each entry in the Statement means and what impact each has on the Ordinary Shareholders of Burberry plc .Evaluation of business strategy The resulting recognition of the intangible asset of £70.9m and other expenses within the £71.3m in the recent period. While identifying the values that are intangible all the assets are acquired in the management that was required in the estimated and incremental income that earn an amount from the Group as from1 April 2013 to 31 December 2017.

The value calculated is performed in the basis of the key forecast assumptions should include the sales of other products in relation to the other product category that operated in activities that tax charged the increased profits.3.Using a spreadsheet, reformulate the Statement of Shareholders Equity following the pro forma on page 262 of Penman.Statement of valuation and recommendationValuation is the main part of investment. The considerable part that creates information that states a proper valuation in the financial statement.

In the new Financial Statement Analysis and Security Valuation done by Stephen Penman it shows that students understand how to extract new information in this financial statement by using the data that was obtained and value the firms. By handling the accounting in financial statements and using the financial statements the lenses view the business and assess the value in generating new financial statements (Paul 114).Executive summary Burberry group plc is the Company that is the main Company in the Burberry Group.

The stock exchange has the principal business used in the larger part of these investments. Burberry Group plc and the additions as a Group is the large-scale comfort goods manufacturer, wholesaler and retailer. The Group that is also licensed that other parties manufacture and issue all the products using the Burberry trade marks as the local brand. All the other companies consist of the Groups that mainly control the Company both directly and indirectly (Karen 98).Most of these financial statements were prepared using the ongoing anxiety on the basis of the historical costs and convention that the exception is about the financial instruments that involve good financial statements that is fair and valuable in accordance to the applicable to this accounts (Paul107).

Balance sheetsGroup Balance SheetAttributable to owners of the CompanyNoteOrdinary share capital £mShare premium account £mOther reserves £mRetained earnings £mTotal £mNoncontrolling interest £mTotal equity £mBalance as at 31 March 2011 0.2 192.5 154.5 366.4 713.6 20.1 733.7Profit for the year – – – 263.3 263.3 1.8 265.1Other comprehensive income:Cash flow hedges 22 – – 3.3 – 3.3 – 3.3Foreign currency translation differences – – (4.4) – (4.4) 0.6 (3.8)Tax on other comprehensive income – – (1.0) – (1.0) – (1.0)Total comprehensive income for the year – – (2.1) 263.3 261.2 2.4 263.

6Transfer between reserves – – 5.0 (5.0) – – –Transactions with owners:Employee share incentive schemesValue of share options granted – – – 31.8 31.8 – 31.8Value of share options transferred to liabilities – – – (0.8) (0.8) – (0.8)Tax on share options granted – – – 17.4 17.4 – 17.4Exercise of share awards – 10.1 – (9.5) 0.6 – 0.6Purchase of own shares by ESOP trusts – – – (60.7) (60.7) – (60.7)Sale of own shares by ESOP trusts – – – 0.1 0.1 – 0.

1Capital contribution by non-controlling interest – – – – – 4.9 4.9Dividends paid in the year – – – (95.9) (95.9) (3.3) (99.2)Balance as at 31 March 2012 0.2 202.6 157.4 507.1 867.3 24.1 891.4Profit for the year – – – 254.3 254.3 4.9 259.2Other comprehensive income:Cash flow hedges 22 – – 5.7 – 5.7 – 5.7Foreign currency translation differences – – 33.8 – 33.8 2.2 36.0Tax on other comprehensive income – – (2.7) – (2.7) – (2.7)Total comprehensive income for the year – – 36.8 254.3 291.1 7.1 298.

2Transfer between reserves – – 3.1 (3.1) – – –Transactions with owners:Employee share incentive schemesValue of share options granted – – – 24.9 24.9 – 24.9Value of share options transferred to liabilities – – – (1.3) (1.3) – (1.3)Tax on share options granted – – – (1.9) (1.9) – (1.9)Exercise of share awards – 1.0 – – 1.0 – 1.0Purchase of own shares by ESOP trusts – – – (46.4) (46.4) – (46.4)Capital contribution by non-controlling interest – – – – – 0.4 0.4De-recognition of non-controlling interest 30 – – – (4.2) (4.2) 4.

2 –Dividends paid in the year – – – (113.5) (113.5) – (113.5)Balance as at 31 March 2013 0.2 203.6 197.3 615.9 1,017.0 35.8 1,052.8 Statements of cash flows The Annual Report and Accounts should take the whole path as required and become a fairly balanced and comprehensive statement that provides all the information that is necessary for the shareholders in assessing the performance of the groups. Therefore, business model and strategy used by the Board is satisfied and had met the obligation that summarizes the responsibilities of directors in the annual financial statements that is set out to provide the report of the auditors and the statements used by the auditors about their reported responsibilities (Kieso, Donald, and Jerry Weygandt 253).

Work CitedCollins, Karen. Exploring Business. Upper Saddle River, NJ: Pearson/Prentice Hall, 2008. Print. Top of FormBottom of FormArgenti, Paul A. Strategic Corporate Communication. New Delhi: Tata McGraw-Hill Pub., 2007. Print. Top of FormBottom of FormHancock, John. Investing in Corporate Social Responsibility. London: Kogan Page, 2005. Print. Top of ForBottom of FormHollensen, Svend. Global Marketing: A Decision-oriented Approach. 4th ed. Harlow: Financial Times Prentice Hall, 2007. Print.

Top of FormBottom of FormKieso, Donald E., and Jerry J. Weygandt. Intermediate Accounting. IFRS ed. Hoboken, NJ: Wiley, 2011. Print.