Financial Analysis of Fidesa Group Plc and The Sage Group Plc - Research Paper Example

Download file to see previous pages Hussey and Ong, (2005:50-65) argue that international Financial Reporting Standards (IFRS), require each and every company to adhere to some regulation when it is publishing its statements. The most basic requirement is identifying the company by name or any other means that will make people recognize it. This requirement is met with no reasonable doubt by these two companies. To what extent the reports cover (groups or individual enterprise) should as well be indicated in the report (Ogilvie, 2006:477). The reporting currency, in this case, the US cent should also be indicated. The precise figure of the amount for example, in billion, millions, and ‘000’ as indicated in these two companies should be indicated. The trading period, for example, Sage ends on 30th September and begins on the 1st October whereas that of Fidessa ends on 31st December and starts on January 1st.

According to IAS 1, the major report that should be included in the company’s report includes the income statement, the balance sheet, the statement of change in equity, the cash flow statements, and the notes to account where according to the two companies report the year 2014, all are present. Other requirements as per IFRS is that the company should lay the final accounts to members at the annual general meeting, giving members the necessary document, for example, balance sheet for preview before the annual general meeting and directors emoluments disclosure which is all included in these companies report (Ankarath, Mehta, Ghosh and Alkafaji, 2010:38-50).

The audit should be made by an independent auditor where at Fidessa KPMG are in charge, whereas in Sage price house coopers are in charge. In the report, the risk and the going concern of the company or the group should be indicated and according to the two firms’ reports, this is clearly disclosed. Corporate governance is not an exemption and the two companies has elaborated the management team with their responsibilities vividly. The additional part of the report contains corporate social responsibility and the two companies have disclosed their determination to serve the community. ...Download file to see next pages Read More