Financial Accounting .

This article discusses the financial and non-financial factors affecting the financial performance of Green King and Young and Co’s Brewery Plc.

Running head: FINANCIAL ACCOUNTING
Financial Accounting
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1FINANCIAL ACCOUNTING
Table of Contents
C. Performance Factors...................................................................................................................2
Green King Plc............................................................................................................................2
Young and Co’s Brewery Plc......................................................................................................2
References........................................................................................................................................4

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C. Performance Factors
Green King Plc
There are certain financial as well as non-financial factors that have affected the financial
performance of Green King Plc. There is decrease in the gross profit of the company and
decrease in total revenues and operating profit can be considered as the factors responsible for
this. According to the annual report of Green King Plc, factors affecting the operating profit of
the company are increased cost pressure and the investment in value, service and quality
(greeneking.co.uk 2018). It can be seen from the balance sheet of Green King Plc that there is
huge decrease in the current assets of the company in 2018 from 2017; and it is a major financial
factors that has affected the liquidity position of the company. Moreover, the balance sheet of the
company shows decrease in the total assets of the company in the year 2018 as compared to
2017; and it can be regarded as a major factors having impact on the overall financial position of
Green King Plc (Weil, Schipper and Francis 2013). Apart from these financial factors, some non-
financial factors have also affected the business performance of Green King Plc. For example,
the presence of snowy weather during the year affected the trading of the company during the
second half of the year. At the same time, it needs to be mentioned that Green King Plc has to
comply with certain revised accounting policies that have impact on the financial performance of
the company during the year; such as amendments in IAS 7, IAS 12 and IFRS 12
(greeneking.co.uk 2018).
Young and Co’s Brewery Plc
In case of Young and Co’s Brewery Plc, the presence of some financial and non-financial
factors can be seen affecting the financial performance of the company. It can be seen that there

3FINANCIAL ACCOUNTING
is significant increase in the borrowings of the company in 2018 as compared to 2017. At the
same time, Young and Co’s Brewery Plc registered decrease in the total asset position in 2018 as
compared to 2017 (youngs.co.uk 2018). These are two major financial factors having impact in
the financial performance of the company. Moreover, increase in non-current borrowings led to
the increase in the interest expenses of the company in 2018 from 2017 that affected the
profitability position of the company. According to the non-financial factors, Young and Co’s
Brewery Plc has adopted certain new standards for their financial reporting; and these standards
led to increased disclosure and classification of the financial factors; they are IFRS 16, IFRS 2,
IFRS 15, IAS 12 and others. This factor has impact on the financial performance of the company
(youngs.co.uk 2018). At the same time, the revenue of Young and Co’s Brewery Plc has been
affected by the spending habits of their customers. In addition, the new introduced Government’s
rule of the National Living Wage leads the extra payment to the labors by the company. It affects
the financial performance of the company by decreasing the profit level. Some other factors are
business taxes, duty on alcoholic drinks and business rates as these have impact on the financial
performance of Young and Co’s Brewery Plc (McLaney and Atrill 2014).

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References
Greeneking.co.uk., 2018. Annual Report 2018. [online] Available at:
https://www.greeneking.co.uk/media/4029/greene-king-plc-annual-report-2018.pdf [Accessed 24
Nov. 2018].
McLaney, E.J. and Atrill, P., 2014. Accounting and finance: An introduction. Pearson.
Weil, R.L., Schipper, K. and Francis, J., 2013. Financial accounting: an introduction to
concepts, methods and uses. Cengage Learning.
Youngs.co.uk., 2018. Annual Report for the 52 Weeks ended 2 April 2018. [online] Available at:
https://www.youngs.co.uk/youngs/uploads/sites/2/2018/08/59_resultsDocument.pdf [Accessed
24 Nov. 2018].