Financial Analysis of Skanska Plc

Financial Decision Making
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Table of Contents
Introduction................................................................................................................................3
Task 01.......................................................................................................................................4
The importance of accounting functions in Skanska Plc...........................................................4
The importance of financial functions in Skanska Plc...............................................................5
The duties and roles of accounting functions in Skanska Plc....................................................6
The roles and duties of financial functions in Skanska Plc........................................................8
Task 02.....................................................................................................................................10
Determining the ratios of Skanska plc.....................................................................................10
The evaluation of the performance Skanska Plc......................................................................12
Conclusion................................................................................................................................14
References................................................................................................................................15
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Introduction
The report is prepared on the financial decision making of the company. A business
organisation has to take many decisions which are related to do the business organisation.
Accounting functions refer to the accumulation of terms that are used in an organisation to
record the transaction, book-keeping, and help an organsiation to get a summary of the whole
transaction of the organisation. Financial decision-making is the method of taking the
decision related to the financial management of an organisation. For this report, the chosen
company is named ‘Skanska Plc’ which is a famous construction and project development
company in the United Kingdom. The various components of the organisation are evaluated,
while the financial decisions are taken by the business organisation. The report is divided into
two sections. The first part has related the importance of the accounting department and
financial department of the company. There are discussions on the financial accounting of the
company, accounting function of a company, and so on. The roles and duties of accounting
and financial function have been also discussed in the report. On the other part of the report,
various financial ratios of Skanska plc have been determined. Finally, the evaluation of the
performance of Skanska Plc has been discussed in the report.
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Task 01
The importance of accounting functions in Skanska Plc
Accounting functions refer to the accumulation of terms that are used in an organisation to
record the transaction, book-keeping, and help an organsiation to get a summary of the whole
transaction of the organisation (Bangma, 2019). The accounting functions have great
importance in the organisation. They help an organisation to keep track of the financial
position of an organisation. The accounting functions help on organisation to measure the
performance level of the employee, and also help an organisation to make a proper financial
plan of an organisation. Skanska Plc is one of the famous construction companies in the
United Kingdom. The importance of accounting functions in Skanska are discussed below-
Figure-01: Skanska Plc (Chukwudi, 2018)
Provide financial information: Accounting functions are very important for an
organisation. They help an organisation keep track of the transaction of an
organisation. They help to provide correct financial information to stakeholders
including shareholders, suppliers, distributors, and so on (Frydman, 2016). Skanska
will get a lot of advantages by using accounting functions in the organisation.
Measure performance: Another vital purpose of accounting functions is measuring
the performance of the employee. Accounting functions help an organisation to
measure the performance level of workers. A company can evaluate the performance
level of the workers through accounting functions (Greenberg, 2019). Skanska will
also able to evaluate the performance of workers using accounting functions.
Control of expenditure: Control of expenditure is one of the most important purposes
of the accounting function. Accounting functions refer to the accumulation of terms
that are used in an organisation to record the transaction, book-keeping, and help an
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