Evaluation of Performance Information Based on PWC Value Framework

In this report we will discuss about managerial accounting and below are the summaries point:- Marks & Spencer is a leading UK retailer that offers clothing, food, and home products globally. The company's highly qualified managers formulate objectives for sustainable business growth and meeting stakeholders' accountabilities. The company's business model focuses on providing quality products and maintaining an ethical code of conduct. The business model encompasses all areas of the company's products and services, including food, clothing, financial services, and property. The governance practices of Marks & Spencer aim to protect the interests of shareholders and engage the board in major decision-making. The accessibility of information for all three elements (comprehensiveness, accessibility, and governance) is good, with well-defined explanations and formats.

Student Name
Student ID
Name of company: Marks & Spencer
MANAGERIAL ACCOUNTING
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Executive summary
This report sheds light on the evaluation of the quality of performance information based on the
PWC value framework. As per this value framework, organisational health and performance will
be evaluated on the basis of elements mentioned. On the basis of the analysis of quality of
performance information by applying PWC value framework, it can be observed that in some
elements such as objectives, strategies, physical assets, financial assets, risk, and remuneration
policy the quality maintained was high. With the aid of such a high quality of informed decision-
making, the process for internal as well as external stakeholders will be efficient. On the other
hand, in some elements, the quality of information such as innovation and customers was bad
and ugly as a result of which it will directly impact the decision-making process of management
and investors.
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Table of Contents
Strategy............................................................................................................................................3
Objectives.....................................................................................................................................3
Business model............................................................................................................................4
Governance..................................................................................................................................5
Risk..............................................................................................................................................6
Remuneration...............................................................................................................................7
Resources and relationship..............................................................................................................8
Financial assets............................................................................................................................8
Physical assets..............................................................................................................................9
Customers...................................................................................................................................10
People & culture.........................................................................................................................11
Innovation - G&S.......................................................................................................................12
Brands & IA...............................................................................................................................13
Processes & supply chain...........................................................................................................14
Performance...................................................................................................................................15
Operational.................................................................................................................................15
Economic...................................................................................................................................16
Social..........................................................................................................................................17
Environmental............................................................................................................................18
Segmental...................................................................................................................................19
Materiality......................................................................................................................................20
Reference list.................................................................................................................................21
Appendices....................................................................................................................................23
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Appendix 1: Environmental approaches....................................................................................23
Appendix 2: Segmental information..........................................................................................24
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Strategy
Objectives
Figure 1: Objectives of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensiveness
Marks & Spencer is one of the biggest retailers based in the UK who has its presence all over the
world. The company provides high-end clothing, food products, and home products to its
customers. It has been founded in the year 1884, and it is considered being one of the retail
market leaders in the UK. The company constitutes of highly qualified managers who take major
decisions of the company. They are responsible for formulating objectives which will be
followed by all the employees. Their objectives focused on establishing sustainable business
with the aid of consistent profitable growth (M&S, 2019). It also highlights on making sure that
the company is able to meet shareholders accountabilities along with wider stakeholders. The
objective of M&S is rather connected with the vision and mission of the company.
Accessibility
Formulation of strategic objective is significant for every organisation as it provides a detailed
plan on organisations way of going forward. On the basis of strategic objectives, tasks are
building so that every employee can work cohesively in achieving those objectives. As opined by
Visser (2017, p.21), objectives are formulated by internal management and performed by internal
employees only. Detailed objectives of M&S are not mentioned in the annual report, rather a
small overview of the company’s objective has been mentioned. Accessibility of the element of
objective could be improved if a list of objectives would have been mentioned in its strategic
report. The quality of information on this element is good.
5

Business model
Figure 2: Business model of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensiveness
The business model is defined as the overall organisation structure that outlines the overall plan
and strategy taken up by an organisation in order to achieve success within an industry (Kumar et
al. 2018, p.152). The business model of M&S focused on establishing well-known brands in
order to provide quality products to the customer. It also revolves around maintaining an ethical
code of conduct as well as delivering the value-added product. The business model of the
company addresses each area of product and services provided by the organisation such as food,
clothing, financial service, and property. It is a well build the business model as it creates a
connection between elements of the core business model and its products and services.
Accessibility
Explanation of the business model of Marks and Spencer is well defined, and it highlights core
products and its way of delivering that product by maintaining quality through effective
channels. Its quality of portraying business model is quite high due to easy understanding of its
business model. It can be observed that the business model of M&S is well connected with the
risk associated with the business model. In addition to this, the company has also constructed its
strategies and objectives by keeping business model at its core. The business model of M&S is
precisely formatted, which assisted in understanding its key areas associated with the business
model. The quality of information on this element is good
6

Governance
Figure 3: Corporate governance of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensiveness
Corporate governance can be defined as the practices followed by an organisation in order to
control and maintain the corporation. As opined by Mazzei and Noble (2017, p.410), it broadly
describes the process of the board of directors accountability to protect the interest of
shareholders. Corporate governance of M&S is showcased in a broad manner where it has
addressed each aspect of corporations. It focuses on having a well-engaged board who is
involved in taking major decisions regarding the business activities of M&S. Corporations of
M&S includes its board of directors, retail shareholders, and all other employees.
Accessibility
Accessibility of this particular element of value framework was comparatively easy as it has a
whole separate section where it discussed each aspect of corporate governance. They have
provided a detailed description of each board of directors regarding their share in the business,
along with strengths and weaknesses. It has also highlighted all the board activities that have
been conducted throughout a financial year. In addition to this, through this element performance
of employee have also been analysed as a result of which it facilitated in easy accessibility of
information. Format for corporate governance was well explained as a result of which the
understanding of this element was comparatively easy. The quality of information on this
element is good
7

Risk
Figure 4: Risk management of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensiveness
Risk management element is one of the important elements that an organisation needs to take
care of while formulating its strategies and objectives (Harvey et al. 2015, p.52). It has been
observed that the board of directors have M&S has set out a detailed plan regarding addressing
each risk element associated with business operations. Risk management starts with the
identification of principal risk that the company is facing along with its impact on overall
profitability. Risk management element has been explained comprehensively, which relates to
each management function of the organisation. Explanation of risk management has been quite
elaborate by including its effect and approach of dealing with each risk element.
Accessibility
Information related to risk element was easily accessible as a result of which the performance of
the organisation can be evaluated easily. It has highlighted all the principal risk and uncertainties
associated with the business operation along with ways it can be mitigated in the coming course
of time. By looking at their risk management chapter, risk performance of the company within a
specific financial year can be understood properly. The quality of information on this element is
good
8

Remuneration
Figure 5: Remuneration overview of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensiveness
Remuneration overview is a part of corporate governance as it provides details about
remuneration structure maintained in an organisation. As opined by Zhang et al. (2019, p.278),
remuneration structure of an organisation is aligned with its remuneration policy and current
market scenario. It can be observed that the remuneration of an employee is determined by
aligning with business performance and interest of shareholders and the company itself. It means
that the remuneration structure is formed on the basis of its profitability aspect of business
operation by keeping the interest of shareholders. Remuneration element is well connected with
financial objectives as well as corporate governance of the organisation as better performance is
shown in the financial figure will directly impact remuneration structure.
Accessibility
Information related to remuneration structure can be easily accessible from the corporate
governance chapter. It is directly related to internal stakeholders of the company, which includes
the board of directors and other employees working at a different level of management. From the
report, remuneration performance, information can be easily accessed and understandable.
Remuneration overview is well formatted and structured, which makes it easier to understand the
performance level of this element. The quality of information on this element is good
9

Resources and relationship
Financial assets
Figure 6: Financial assets owned by M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensiveness
Financial assets are considered as the fixed and current assets owned by an organisation. It
basically broadly describes as non-physical assets along with investments owned by an
organisation within a specific financial year. In the case of M&S, financial assets are mentioned
both in the fixed asset as well as in current asset. As opined by Kalyanaram and Aung (2015,
p.52), a financial asset is measured correctly so that it can be recorded in the financial
statements. In the annual report of M&S, the financial asset of the company has not been
described separately; rather, it has been included in financial instruments. Performance of
financial asset cannot be evaluated separately as it is included under total assets of the company.
Accessibility
Accessibility related to information of financial asset cannot access so easily rather in the annual
report of M&S whole total assets has been mentioned. However, some financial asset can be
identified from their balance sheet and cash flow statement. Financial assets include those assets
which do not have any physical existence, and its value is basically derived from a contractual
claim. It has been determined that physical assets are more liquid in nature, which is beneficial
for a company to run its business operation. In the annual report of M&S, it can be observed that
financial assets are mentioned in financial statements, and it consists of the amount invested in
debt and equity securities market along with other short term investment. With the aid of such
information, decision-makers will be able to evaluate the level of liquid assets owned by the
company except for inventories, cash, and accounts receivables. It has been determined that the
quality of information on this element is good
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Physical assets
Figure 7: Physical assets of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensibility
Physical assets are referred to as assets which have physical or material existence. As opined by
Harvey et al. (2015, p.49), physical assets are generally termed as the tangible assets owned by
an organisation such as plant, machinery, property, and equipment. Marks and Spencer also have
physical assets in the form of property, equipment, plant. These assets have an exchange value
and are physical in nature. Physical assets are considered in the process of evaluating a
company’s worth and value. Information related to the physical assets of the company is quite
comprehensive as it is measured in quantitative terms. Information related to physical assets can
be collected from its balance sheet and cash flow statement. The performance level of physical
assets can be determined by analysing its balance sheet only.
Accessibility
Information associated with physical assets is quantitative in nature, and it is accessible in the
financial statements of an organisation. The performance level of the mark and Spencer related
to its physical assets can be easily be analysed from its financial statements, which include cash
flow statement and balance sheet. Physical assets of the company have been well defined in
financial statements where the number of its physical assets such as plant, equipment, and
property are mentioned. In addition to this, the company has also explained the ways the assets
are being valued in order to include in its books of accounts. The assets are measured at its fair
value on the basis of its cost price at the time of its purchase, which is being mentioned in the
note to financial statements. The quality of information on this element is good
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Customers
Figure 8: Information related to customers of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensibility
Customers are the most important stakeholders for each organisation as they are the one who is
responsible for generating revenue of a business entity. Every objective and strategy related to
business operation is directly linked with customer satisfaction in order to enhance the
profitability of a business (Gerschewski and Xiao, 2015, p.620). M&S is one of the biggest retail
companies in the UK who provides various kinds of products to fulfil customers demand and
wants. Information related to its customers is provided from a broader perspective by lining each
element of performance with customer service. Customer satisfaction is one of the core values of
the company as a result of which its performance metrics are totally dependent upon enhancing
the customer experience. Customer is directly or indirectly related to all the other elements of
value framework. There is a direct connection of customers with other elements of value
framework, such as strategies, objectives, and business model.
Accessibility
Information related to customers is not directly provided in the annual report of the company;
instead, it can be accessed from other elements such as the revenue generated for a specific
financial year. In addition to this, the company has a different base of the customer on the basis
of their products provided in the market. So its customer base can be an interpretation by
analysing strategies used in market penetration for that particular product. Understanding the
customer base of the company can be done by analysing its revenue level as well as its brand
loyalty. Information about customers of M&S is described in a much broader scope. Due to such
reason accessibility of understanding about the customer can be improved if the company would
have provided a brief and precise knowledge regarding its customer base. The quality of
information on this element is bad
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People & culture
Figure 9: Details regarding employees of M&S
(Source:https://corporate.marksandspencer.com/annual-report-2018/
mands_annualreport_2018.pdf)
Comprehensibility
The success of an organisation depends upon the efficient performance of human capital.
Without human capital, it will be difficult for an organisation to achieve all the goals and
objectives that they wished to accomplish (Jonkers and Zacharewicz, 2016, p.45). People are
important stakeholders of a company, and it is essential to provide a positive working
environment where they can work effectively. Employees working at M&S are solely
responsible for enhancing customer experiences so that the profit of the company can be
maximized. The company attempts to motivate and encourage its employees in order to maintain
excellent operating talent. Content regarding employees of M&S is well explained in annual
reports. By analysing our people chapter from the annual report, the performance level of the
company in terms of employee engagement can be determined. Employee and corporate
governance are directly linked with each other, as employee engagements are considered under
corporate governance.
Accessibility
Employee information of Marks and Spencer is easily accessible in the annual report as there is
the whole chapter based on people of the organisation. People are considered as one of the
important element of internal organisation which has a direct impact on the performance
efficiency of the company. This is the reason it is essential to disclose all the possible
information about employees in the annual report. Information related to employees of the
company has been explained elaborately as a result of which understanding about the
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performance level of employees can be understood easily. In addition to this, the improvement of
accessibility for this element is not required. The quality of information on this element is good
Innovation - G&S
Figure 10: Information related to the innovation of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensibility
Innovation is referred to as the process for creating a new idea or method, and it is considered to
be a crucial part of the organisation in terms of facilitating continuous success. Görög (2016,
p.1660) stated that innovation is basically connected with the technological aspect related to a
product or process. M&S is a technology-driven company who focuses on integrating modern
technology in order to cope up with changing market scenario. It can be observed that the retail
company has integrated digital innovation into its system by enhancing the digital channel so that
more customers can be targeted. The company has identified the importance of bringing
innovation to their products and services in order to provide better customer experience to
customers visiting at stores. Content related to the innovation aspect of the company is not
comprehended in the annual report. It is mention in bits and pieces which becomes difficult to
understand about innovation factor. However, they have mentioned some details regarding
innovation in their performance review of products as well as in identified principle risk. In
addition to this, the company has also not mentioned anything particular about the innovation
process in their research and development section.
Accessibility
On the basis of the analysis of the annual report of M&S, it can be observed that performance
information related to the innovation process of the company has not been mentioned clearly.
Information regarding innovation cannot be easily accessed from their annual report. On the
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contrary, they have mentioned that detailed performance information related to innovation can be
gathered from Plan A report and not in the annual report (M&S, 2019). The quality of
information on this element is ugly.
Brands & IA
Figure 11: Details regarding the brand value of M&S
(Source:https://corporate.marksandspencer.com/annual-report-2018/
mands_annualreport_2018.pdf)
Comprehensibility
A brand is generally described as a distinguishing factor which differentiates one product to
another. It means the brand is considered as an identifying mark that is used on products or
services in order to differentiate it from other products provided by a different company. As
opined by Taştan and Davoudi (2017, p.468), brand value is an important performance metrics
which determines the worth of an organisation within an industry. The brand is basically
measured in a quantitative form, which is shown under intangible assets in financial assets.
Information regarding the brand value of M&S can be gathered from its balance sheet as well as
from notes to financial statement. As it is measured quantitatively, the content for the brand is
not that much comprehensive. However, from its value performance of brand name of M&S can
be determined. In addition to this, the brand can is quite independent in nature, and it may not be
connected with other elements of the value framework.
Accessibility
Accessibility of performance information brand element is not comparatively restricted, and it
can be easily gathered from the annual report published by the company. According to Uadiale et
al. (2019, p.32), the brand is term as quantitative performance metrics, which can be measured
and compared easily. The brand is considered as an intangible asset of the company, and its
information can be retrieved from the balance sheet as well as notes to financial statements.
There is no such qualitative description mentioned about brand apart from its disclosure of total
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brand value amount at the year ending annual report of 2018. The quality of information on this
element is bad.
Processes & supply chain
Figure 12: information regarding supply chain of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensibility
Supply chain & processes include a description of operational activities of an organisation that
takes place starting from acquiring to raw materials to delivering finished items in a market. In
the retail sector, effective supply chain management is required as it deals with a huge quantity
of products on a daily basis. In addition to this, companies catering to the retail sector need to
maintain a warehouse as well as a distribution centre where the applicability of supply chain
management is indispensable. The efficiency of the supply chain will be dependent upon
strategic plans and techniques used in handling inventory stored in a warehouse (Cooper et al.
2016, p.18). In the case of M&S, the company has various ranges of products, which makes them
use strategic supply chain process to make sure that the stock level of each store is well
maintained. Information related to the supply chain is not comprehensive, and the content is
quite less. However, they have specified the methodology for dealing with the maintenance of
stock level in every store, which makes the information quite precise and short.
Accessibility
Information of supply chain included in the annual report of the company can partially be
obtained. It means that due to the lack of detailed information on supply chain activity of the
company, performance evaluation of the company on the basis of supply chain activities cannot
be determined accurately. In addition to this, information of the supply chain was provided in the
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annual report in bits and pieces as a result of which accessibility of information was
compromised. In order to improve the accessibility of supply chain activities, the company could
have provided a diagram of how products move from their warehouse to stores. The quality of
information on this element is bad.
Performance
Operational
Figure 13: Operational cost of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensibility
Operational department of an organisation includes all business activities such as marketing,
production, store staffing, and many more. Hahn et al. (2015, p.302) mentioned that operational
activities are considered to the main function of business entities that are directly related to
delivering products or services to market. The operational department is such a vast aspect due to
which information related to operational activities is quite comprehensive in nature. In order to
gather information about operational performance, analysis of income statement, strategies of
supply chain management, and marketing activities of M&S need to be conducted. In the annual
report of M&S, information regarding the performance of the operational department can be
obtained from its financial review as well as from non-financial information section of the report
(M&S, 2019). Furthermore, operation performance is directly related to the resource element of
the value framework, which facilitates in providing a more detailed overview of the subject.
Accessibility
Based on the analysis of the annual report of M&S, it can be observed that accessibility for this
specific element is not as easy as it seems. This is because, in order to gather information about
operational performance, it would be essential to study various other elements which are directly
17

linked with the operational department. Information retrieved can be comprehensive; however; it
will become hard to understand operational performance (M&S, 2019). It will require strong
analytical skills to interpret such vast information. Improvement of accessibility of information
on operational activities can be made by using heading properly and correctly in order to
organise report structure. The quality of information on this element is bad.
Economic
Figure 14: Economic factor of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensibility
The economic factor of an organisation is considered to be external factors which have a direct
impact on internal business activities. It has an effect on key functional areas such as operation,
production, financial, and human resources of business entities. Some of the key economic
factors which have a direct impact on business organisation include labour cost, tax rates, interest
rate, and government policy (Dastmalchian et al. 2015, p.398). Content for information on the
economic factor of M&S is not provided comprehensively. It means that there is some
information which is not added in the annual report, which would make the analysis more
constructive. It did not mention specifically about any government policy which can impact the
growth of the business. However, economic factors are directly linked with remuneration policy
and tax contribution by the company, which can facilitate in providing performance information
about economic activities.
Accessibility
Information on economic factors mentioned in the annual report of M&S cannot be gathered
easily as information is scattered and not provided specifically. It is essential to obtain
information regarding the economic performance of the company in order to assess economic
viability in the external market. On the basis of the analysis of the annual report of M&S, it can
be observed that economic information can be gathered from their tax contribution, consideration
of interest rates, and remuneration policy (M&S, 2019). All this information is not presented in a
precise manner as a result of which accessibility of economic information has been
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compromised. Accessibility of information on economic performance can be improved if it had
designed its information structure in a more effective way. That means the company could have
highlighted its key economic performance in the non-financial information section. The quality
of information on this element is good.
Social
Figure 15: Social factors of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensibility
Profit making huge corporations has responsibilities towards its community in terms of
supporting the interest of the social community. Whenever the organisation has attempted to
conduct some activities which did not withstand social norms, it has incurred huge losses by
losing its valuable customers. This is why it is essential for business entities to conduct corporate
social responsibilities in order to maintain a healthy relationship with their external stakeholders.
M&S is a big multinational company who indulges themselves in having a strategic approach
that addresses social issues in the market. It can be observed that information related to the social
approach of the company is not explained comprehensively in an annual report. The content is
small as a result of which evaluation of its social performance cannot be determined properly.
However, it has mentioned direction from where relevant information on social approach can be
obtained. Nonetheless, obtaining less information on social approach taken by M&S will affect
the quality of performance information.
Accessibility
Gathering information on social factors of the company is as important as obtaining information
about other broader factors as it will facilitate in assessing organisational performance more
comprehensively. In the annual report of M&S, the social approach of the company has not been
broadly explained as a result of which performance information on social approach has not been
19

found easily. Due to restriction in the scope of gathering information from the annual report, it
was being instructed to obtain information from Plan A report of the company. In addition to
this, the absence of comprehensive information on social approach has made the report less
understandable in the case of assessing social performance. The quality of information on this
element is ugly.
Environmental
Figure 16: Environmental approach of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensibility
Sustainability of business organisation depends upon taking care of all necessary factors which
can impact on the external environment of a company. One such factor is the environmental
factor that has a direct effect on the prosperity of the growth of business activities.
Environmental factors are associated with the functionality of living organism present in the
environment. At the time of measuring the performance of an organisation, it is essential to
evaluate environmental factors in order to make sure that business entities have complied with
environmental laws provided by government bodies. Content included in the annual report with
respect to environmental factors of M&S is productive as well as it is explained both in
qualitative and quantitative ways, which makes the information more precise and constructive.
Environmental factors are well connected with corporate governance element of value
framework due to the fact that top-level managers are responsible for making sure that each
business activity is abiding environmental laws. In addition to this, the company has also
mentioned about approaches taken by management to support its environmental factors, which
makes the quality of information good (Refer to appendix 1).
Accessibility
It has been identified from the annual report of M&S, information associated with its
environmental factors are well defined and constructed, which makes it easily accessible in terms
20

of obtaining that particular information. It has been mentioned about the carbon emission
percentage, which specifically describes how the company has performed with respect to its
environmental factor. Due to its well-articulated description about environmental approach, the
information obtained can be easily understandable as well as it can be used in evaluating the
overall health of M&S. The quality of information on this element is good
Segmental
Figure 17: Segmental information of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Comprehensibility
Segmental information is termed as one such type of reporting which discloses information on
operating segments accompanying its financial statements. As opined by Bititci et al. (2015,
p.3063), segmental information is generally used by public entities rather than private entities.
Basically, in segmental reporting, revenue generated from each of the segments of a business
operation is being mentioned. Based on the information revealed in the annual report of M&S, it
can be observed that the company has comprehensively explained its segmental revenue that it
has generated throughout the financial year. In addition to this, the company has also mentioned
additional tangible asset bought total assets, as well as depreciation and amortization. It has been
analysed that, the content of information related to its segmental performance is shown fully as a
result of which overall organisational performance can be determined accurately.
Accessibility
Segmental information provided by M&S is fully explained to the extent of its operational
performance. Information obtained related to segmental revenue is displayed in a well-structured
manner, thus resulting in too easy accessibility of information. In addition to this, the company
has mentioned the revenue generated under each segment. As for example, UK gross profit of
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the company under management segment has amounted to 3945.4 million GBP whereas UK
gross profit collected under logistic adjustment segment is recorded at (370) million GBP (Refer
to appendix 2). Due to such clear specification of information on segmental factor, performance
evaluation can be easily understandable, thus resulting in providing better decision making
choices. The quality of information on this element is good
Materiality
Figure 18: Materiality of M&S
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
Materiality is one of the important aspects of audit function related to the recording of financial
statements of an organisation. Materiality includes misstatement where the business organisation
uses it in order to influence economic decision of users of financial statements. In the case of
M&S materiality is used for avoiding the situation of arising misstatement that is the omission of
any relevant information in order to present correct financial figures so that external investors
can make sound financial decisions. It has been identified that in books of accounts of M&S
materiality has been recorded at 24.5 million GBP on the basis of adjustment made to profit
before tax by 5%. The materiality of financial statements has not been capped at a high range as
it may affect the overall financial performance of the company. In addition to this, the amount
materiality has been set as per figures disclosed in the previous financial year in order to
maintain the accuracy of financial results. Materiality is an important factor while making a
decision as it is directly linked with the main operating activities of the business organisation.
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Reference list
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Cooper, S., Watson, D. and Worrall, R., (2016). Managing Supply Chain Networks: A
Framework for Achieving Superior Performance through Leadership Capabilities Development
in Supply Chain Node, 48(5), pp.17-50
Dastmalchian, A., McNeil, N., Blyton, P., Bacon, N., Blunsdon, B., Kabasakal, H., Varnali, R.
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Appendices
Appendix 1: Environmental approaches
(Source:
https://corporate.marksandspencer.com/annual-report-2018/mands_annualreport_2018.pdf)
25

Appendix 2: Segmental information
(source:https://corporate.marksandspencer.com/annual-report-2018/
mands_annualreport_2018.pdf)
26