Financial Decision Making: Conceptual Framework, Evaluation and Interpretation of Financial Statements

FINANCIAL DECISION
MAKING

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Conceptual framework of accounting and finance department...................................................3
TASK 2............................................................................................................................................7
Evaluation and interpretation of financial statements.................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The use of a combination of approaches and techniques to make rational and accurate
attitudes and practice is referred to as financial decision-making (Barth, Papageorge and Thom,
2017). Accounting companies should also verify that nearly everyone around the business
understands how to make smart choices based on such philosophies. Skanska PLC seems to be
the basis for this article. It's a British building company based in the UK. During the next 2
decades, it intends to extend its activities in Europe. It must then assess the present position in
order to make strategic decisions. As a consequence, it must determine its purpose for all of this
reason so that constructive action can be taken throughout the potential time. The relevance of
monitoring and financing activities, obligations, and roles within Skanska PLC will be
thoroughly examined in this article. Ratios are mostly used throughout this context to accurately
calculate market productivity by measuring the combination between revenue and spending.
TASK 1
Conceptual framework of accounting and finance department
Financial management is important because it was being used to change the overall
evaluation of a company's financial condition in a reliable and cost-effective manner. It is
important for business leaders to be well trained in particular positions so that the capital system
can be handled effectively as well as the strategic goals can be achieved. When making choices,
it can be very beneficial. Accounting's role in corporate organisations cannot be overestimated. It
is critical to manage such tasks in the sense of Skanska PLC. Controlling certain roles is critical
throughout the view of Skanska PLC. The underlying should be used to understand the value of
such a procedure. It really is critical that perhaps the finance manager of SKANSKA Plc focus
on the group's strategic planning (Bouzguenda, 2018). The accounts payable collects and
analyses a firm's cash balance payments. This division adheres to a variety of filing, cost accrual,
pay and revenue documentation, and accounting principles. Records, documents, feedback,
detailed resource estimates, loans, interest, and profitability are only a few of the users for such a
company's operation.
Importance’s of Accounting department
SKANSKA Plc requires the finance department to determine sufficient resources for
effective operation support as well as for agencies to carry out their obligations and goals. Cost

management, accurate financial planning, meeting success targets, and such are also major issues
throughout this finance manager. Another of the Company's key responsibilities is to make sure
employees and recruitment have sufficient banking expertise before making any further
decisions. It would be easier to do this if you have spent in financial reporting and have prepared
for object application and tracking (Chen, 2018).
The summary is valuable because it helps in the accurate recording of all types of
transactions and assures that now the limited partnership conducts payments in a fair manner.
Skanska PLC must really be sufficient to retain detailed reports of commercial activities by
monitoring, and also increase the quality and integrity of information usage.
• Facilitates decision-making – Accountability is critical for businesses because it helps
them to schedule their activities in the small, intermediate, as well as long term, along
with implement the most effective tools and practises. It's also important for businesses
like Skanska PLC to have been in a greater position to prosper quickly and immediately
and that they're bigger and stronger.
• Record-keeping is useful for ensuring that data collected in value correspondence is
monitored effectively. Leaders of Skanska PLC should also be able to share findings in a
succinct manner such that they might make the best decisions possible.
• Program formulation of laws and regulations - Personal accountability allows a business
to determine whether it is in accordance with a set of legal requirements. Compliance
including all legal standards is also critical for the Skanska PLC Business. To guarantee
that operating requirements are met, Skanska PLC management need to use reporting on
a daily and efficient basis (Cook and Sadeghein, 2018).
• Data review and analysis - An information appraisal must be conducted in order to
accurately judge as well as report the performance. That may be very useful to them in
terms of implying that the standard of decision could be met using proof and as such the
final observations are indeed very true. The fundamental assessment of results, which
contributes to the decision-making process, is absolutely critical at Skanska PLC. It is
important to apply this proof correctly.
• Having a decision- Accounting can assist businesses in making a variety of critical
choices over period. Managers must, however, use accounting practises to safely
monitor accounts, reports, and documents, and also make correct and timely decisions.