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(solved) Case Study on TESCO

   

Added on  2020-10-22

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Case Study on TESCO
(solved) Case Study on TESCO_1

Table of ContentsINTRODUCTION...........................................................................................................................1SET 5...............................................................................................................................................1Gearing ratios of TESCO.......................................................................................................1SET 6...............................................................................................................................................2International Financial Reporting Standards on revenue recognition used by TESCO.........2SET 8...............................................................................................................................................3Major credit rating agencies and the functions performed by these agencies........................3CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5APPENDIX......................................................................................................................................6
(solved) Case Study on TESCO_2

INTRODUCTIONFinancial accounting refers to a specialized branch of accounting which includes theprocess of classifying, recording, analysing, summarising and reporting all the transactionswhich are financial in nature. TESCO plc is a British multinational groceries and generalmerchandise retail chain founded in 1919. The report will outline the calculations of the gearingratio of the TESCO PLC. Further it will discuss the International Financial Reporting Standards(IFRS) used by the company on the revenue recognition. In the end it will highlight the majorcorporate credit rating agencies and their functions.SET 5Gearing ratios of TESCOGearing ratios are a part of financial ratios. It measures the proportion of the company'sequity with that of the borrowed funds of the company (Dragun, 2007). This type of ratiosindicates the amount of the financial risk up to which the company is open and subjected. A highgearing ratio represents a high amount of debt involvement in the capital structure.The gearing ratio is calculated as long term loans / long term loans + share capital + reserves* 100The gearing ratio of the TESCO plc for last three financial years are calculated below- YearLong term loans(a)Ordinary shares(b)Reserves (c)201697771277550002017994610103654020189188132151500Calculation of gearing ratio-Year Long term loans(a)(a+b+c)a/ (a+b+c)*100201697772755235.49%201799462658959.76%201891882390338.43%Interpretation1
(solved) Case Study on TESCO_3

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