Importance of Finance and Accounting Functions in SKANSKA PLC

FDM

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
TASK 1.......................................................................................................................................................4
Importance of accounting functions and duties & roles...........................................................................4
Importance of finance functions and roles & duties.................................................................................6
TASK 2.......................................................................................................................................................8
a) Calculating ratios of SKANSKA PLC.............................................................................................8
b) Explaining the financial performance of company along with causes and impact.........................11
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Financial decision making is method of recording, analyzing and summarizing large
monetary transactions into structural pattern. It is crucial to adopt in current scenario as
competition has increased due to lack of barriers to enter into industry. For this purpose it
becomes important for firm have significant characteristics that are different from other similar
firms. The current case study is based on the SKANSKA PLC. (SP). Present report will involve
importance of finance and accounting functions by specifying these areas responsibilities and
roles. The present report will show computation of ratios metrics for analyzing the financial
performance of SKANSKA PLC. Present report will involve the causes, reason and impact of
changes in ratio for having deep insight into company.
MAIN BODY
TASK 1
Importance of accounting functions and duties & roles
Accounting function is adopted to accomplish some business objectives so that it can move
towards success and stability. There are various functions of accounting which helps in gaining
benefits. Importance of accounting function is as followed:
 Accounting enable the organization to avoid errors and misstatement involvement
situation by detecting and checking the lacking areas in each step which helps in getting
accurate information and data (Accounting functions, 2021). This as will permit to
prepare reconciliation statements for overcoming the prevailing mistakes of SKANSKA
PLC.
 This helps in maintain proper records and account so that future needs like formulation of
policies, structures can be exerted by referring the specified terms. It assists in avoiding
legal obligations that can harm credit and trustworthiness of SP.
 Another importance of accounting function is to help current and potential investors to
determine SKANSKA PLC. growth and profitability.