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Financial Reporting in Global Market

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Added on  2023/01/09

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This document provides an introduction to financial reporting in the global market, including regulatory frameworks and governance of financial accounting. It also discusses the purpose of financial reporting for meeting organizational objectives, development, and growth. Additionally, it covers the interpretation of profit & loss, balance sheet, and cash flows. The document includes information on the subject of financial reporting, course code, course name, and college/university.

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Financial Reporting in
Global Market

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INTRODUCTION...........................................................................................................................................4
TASK 1..........................................................................................................................................................4
P1 Regulatory frameworks and governance of financial accounting:......................................................4
Governance of financial reporting...........................................................................................................6
P2 Purpose of financial reporting for meeting organisational objectives, development and growth:.......7
P3 Interpretation of profit & loss, balance sheet and cash flows..............................................................9
P5 Benefits of International Accounting Standards (IAS) and International Financial Reporting
Standards (IFRS)...................................................................................................................................12
P6 Models of financial reporting and auditing.......................................................................................14
P7 Critically evaluate the differences and importance of IFRS in different countries............................15
Factors influence the international differences in financial reporting....................................................16
Models of financial reporting and auditing............................................................................................16
CONCLUSION.............................................................................................................................................16
REFERENCES..............................................................................................................................................17
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INTRODUCTION
Financial reporting can be considered as a system of displaying to employees and senior
interested parties the financial reports and details. The primary function of these documents is to
raise awareness among citizens about a corporation’s financial over a given time period. There
are a large variety of decisions and processes produced by various agencies in the context of the
organization (Aifuwa and Embele, 2019). Awareness of the results of all the operations in terms
of benefit is important here and that this is achieved with the aid of annual disclosures. The
annual reports are finally drawn up and published at the end of each accounting period. This
report based on the Tesco Company which is established in UK and large sector organisation.
Now this Financial Reports report format, conceptual and regulatory structure is described.
Including the advantage of those findings to the stockholder is also addressed. In addition to this,
the report contains variations between the international accounting standard and the international
financial reporting requirement. From the background of provided details and data, various types
of financial reports and statements, including such P&L account, balance sheet etc. are prepared.
TASK 1
P1 Regulatory frameworks and governance of financial accounting:
Financial reporting: This includes the submission to the managers and the holders i.e. the
investors of the company’s financial statements for the purpose of obtaining information the
financial condition of the corporation. It is the assessment of audited financial statements in an
organization that consists mainly of statement of revenue &spending, report of financial position
and income statement. It is a legal duty for the company to report to its creditors and
stakeholders and what overall monetary condition is. The institution's compliance with financial
reporting guarantees that perhaps the interested parties, most pertinently the stockholders, are
cared for properly of their investments. This is an integral part of effective financial regulation.
Government and political review of accurate financial reports helps companies develop an
enforcement relationship together with consumer dependency. That is accompanied by the core
objective of financial reporting:
1. Reporting to management employees who analysis in operational preparation and decision-
making for TESCO.
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2. Offering supporters, creditors, shareholders and other stakeholders with suitable
documentation and knowledge to allow people to make reasonable and rational funding and
financial choices.
3. To transmit the true and truthful picture of a business organisation to stakeholders and the
world at large (Alzeban, 2019).
4. To assess whether companies use their financial and other business resources efficiently.
5. To provide detailed reports on the corporate growth and growth to the diverse stakeholders.
6. Assessing and reporting the effectiveness of initiatives faced by business organizations to
diverse participants.
7. To prove that Tesco is completely compliant with multiple governmental laws and regulations.
Regulatory framework of financial reporting
In order to manage processes and tracking within financial reports, a common system is
used by many individual business organizations to cover all aspects of financial reporting in
depth. The approving process ensures the far more detailed and suitable financial statements for
an organisation. It emphasizes compliance with generally accepted regulatory requirements to
allow uniform monitoring. IFRS (International Financial Reporting Standards) and GAAP
(Generally Accepted Accounting Principles) are part of the legislative framework, which
provides a collection of criteria, ideas, laws and concepts that accountants can follow when
working on different concerns. The legal framework is a series of phases that government
regulators are starting to take in order to increase the awareness various legislation. It is essential
for TESCO to comply with the legal framework, as it ensures that sufficient customer
information is exchanged with people and corporations. The main aim of the legal environment
is to provide continuity in accounting systems adopted by different business organizations
(Amidu, Yorke and Harvey, 2016). IFRS is a key component of the regulatory component, since
it offers specifications that assist in the sharpness of accounting records. The legal framework is
defined by government agencies and follows all the rules and legislation is also an objective. The
trust of shareholders and investor in companies like TESCO is powerful despite regular
accordance with statutory structure. Such structure is necessary for all publicly traded companies

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accepting digital payments in order to attract potential shareholders. This also helps to address
different problems that can occur during the course of financial statements and increase
transparency. Prepared to follow are some major characteristics of the Financial Reporting
regulatory system including the following:
IFRS: International accounting principles are known as financial reporting guidelines for
publicly listed firms. The committee of the International accounting standard established certain
principles. These are key components of the complex legal framework for accounting. These
standards are agreed internationally by the organizations listed for conducting out financial
accounting and recording issues. These values act as a shared language for the valuation of the
company on a world basis, and as such the current share cost can be clearly understood and
comparable to all customers around the world. These criteria regard both benefits and drawbacks
of the corporation's organisation (Balsmeier and Vanhaverbeke, 2018).
GAAP: It means that business organization must be practiced when accounting standards
in a collection of generally accepted accounting principles, policies and practices. GAAP
provides a standardized basis for the disclosure of potential consumers of business issues.As per
general standards and regulation, GAAP helps regulate the field of finance. It aims to standardize
and control in all sectors the concepts, principles, and procedures used during reporting. GAAP
includes such issues as identification of sales, identification of balance sheets, and materiality.
GAAP's ultimate objective is to guarantee that the financial statements of a corporation are
accurate, accurate, and equivalent. This makes it possible for investor to make and derive
valuable information, particularly pattern items over a period of time, from either the financial
statements of the company. It also involves the evaluation of financial data across various
businesses.
Governance of financial reporting
In the current business climate, government regulators are focusing their efforts into
reinforcing executive compensation requirements for financial statements, with public companies
facing cash problems. Financial reporting laws specifically involve the owner, who is quite
responsible for giving views on the financial statements of the companies. The auditor may be an
internal auditor or a statutory auditor as per their responsibilities. Audit committee may be
employees of the government and are independent public inspectors. For the efficient
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performance of corporate statements, internally and externally or statutory accounting
professionals are important within TESCO. The powers of internal auditing are, therefore,
minimal comparable to external investigators (Hadi, Suryanto and Hussain, 2016). Many other
regulatory agencies, such as the IAB, the ASB, etc., are also committed to good financial
statement accounting, but these bodies have specific standards and regulations for proper
management compliance. Furthermore, regulatory authorities specify the laws and duties of
relevant stakeholders such as accountants. Effective financial reporting governance provides an
actual picture of the efficiency of the company in order to protect stakeholder interest. Tesco has
following the rules and principles of IAS regulatory framework.
P2 Purpose of financial reporting for meeting organisational objectives, development and
growth:
Financial statements, such as revenue and balance sheet reports, offer a true picture of
company goals by income statement. The corporate accounting position for a corporate
corporation, as it ensures long-term success and growth. In TESCO, cash revenues are recorded
by administrators under the financial accounts, income statement, of the financial reporting
system to show their true performance over a particular period (Kimbro and Xu, 2016). Other
significant financial investigation benefits, listed further below, were prepared to take:
• It assists managers to take in-depth organizational plans for future objectives by having to rely
mostly on monetary information provided by declarations that reveal the present position. It
knowledge helps administrators build a base table of estimates for the potential. Data
relevantness provides a pathway to emancipate prospective corporate strategy.
• The second most influential objective of financial statements is to reveal to shareholders that
have provides extra opportunities for growth the key attributes and risk and effects. To do this is
both an obligatory and moral practice.To protect investors' interests from illegal activities
including securities trading, economic scandals etc., and each country has adopted some business
legislation allowing corporations to report information to the community and government.
Following revenue recognition requirements promotes legislative auditing by supplying
excellently-crafted review relevant documentation. This allows it easier for the firm to raise
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money from foreign and regional markets relative to non compliance entities as it fascinates a
good reputation to the business(Lewis and Young, 2019).
Main users of financial statements or statistics are usually people in the shares of the
company or expenditure carrying significant insurable interest in business entity. In addition,
there are a few foreign markets worried with the long term operations and success anticipated of
the corporation. As decision makers are considered those human beings, peoples, collection of
individuals who've been explicitly or implicitly satisfied with the results, performance, financial
status or actual or prospective development of an organization. TESCO main stakeholders
include proprietors, upper executives, suppliers, clients and stockholders. The key importance of
financial details to the diverse participants as mentioned here are:
Internal stakeholders: those were people or companies of people who have been from
within connected yet are also now able to serve institutions such as boards of directors, inner
staff, volunteers and other staff. A few of these team members are addressed following, and their
benefits:
• Shareholders: investors are big TESCO owners and board members. Business is strongly
influenced by investor judgments and they affect organizational net worth. Investors hold a
shareholding in the revenue or net earnings of the organization in the form of earnings and value
of the company.
• Employees: Workers at TESCO would gain from ever using monetary information of the
products because it can help predict their potential development in the business and measure
their own results (Omran and Ramdhony, 2016).
External stakeholders: Groups of people, individuals, groups or organizations are not
actively engaged in Tesco but are interested or involved about the productivity, outcomes,
reports and statement of financial position including such investors, lenders and creditors,
suppliers, ruling party and regulatory bodies. Following are some of them mentioned:
• Investors: While using the monetary reports of the company, investors decide to invest in
the market and to retain an interest in the form of a return on capital in the earnings of the
company. They are often helping organizations in achieving the situation of profit margins.

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• Suppliers: Distributors are stockholders which impact or predict the production and
consumption estimates. Wholesalers profit from association by marketing their goods or product
in large quantities (Perera and Chand, 2015).
TASK 2
P3 Interpretation of profit & loss, balance sheet and cash flows.
Profit & loss account
As per the above report it has been interpreted that revenue of the company is 25000 and
less the amount of cost of sales in order to get the amount of the gross profit which is 120000
that presents the profitability of the business. To calculate the actual amount of the net profit of
the company requires to less the amount of administrative expenses, selling and distribution cost
and net interest payable. After all the deduction from the gross profit get the amount of 67000 of
profit before tax which is 67000. From the profit less the amount of tax get the amount of profit
after tax 46900. The financial situation needs to be presented to the businesses and interpreted.
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Interpretation: As per the above statement it has been analysed that total assets and liabilities
present the actual financial health of the business in accurate manner. In the year of 2019,
company have the non-current assets 411750 and total current assets 103250. Thus, corporation
have total assets 515000. On the other side, analysis liability of business 355000 accumulated
profits, non-current liabilities 125000. Current liabilities of business 35000 in which includes
payable and bank overdraft.
On the basis of above financial statement analysis the actual financial performance of the
business and take investment decision for shorter and longer period of time.
Liquidity ratio- It's a type of ratio that describes the cash reserves-liabilities relationship. It is
separated into two sections that are present ratio and rapid ratio. Below is the Total's Plc
liquidity.
Current ratio- This ratio is evaluated by utilizing the method: Current asset / Current liability.
The relationship between current assets and liabilities is established (Pelger, 2016)
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Particular 2019 (in £)
Current assets 103250
Current liabilities 35000
Current ratio 2.95
Interpretation- Based on the details above, it is analysed that company have current ratio is 2:95
which is close to ideal ratio. This result presents good performance of the business and able to
pay debt in shorter period of time. The optimal current ratio is essentially 2:1 that also indicates
that the organization has the double profit to cover the obligations. Therefore it can be observed
that the company will have fewer funds to pay its loans.
Quick ratio- This equation points out the balance between some of the current liabilities and the
immediate properties. This calculation = [current assets- (stock + accrued expenses)] / current
liability is determined too though. Below the Total Plc corporation's Quick Ratio for 2019 as
shown below:
Particular 2019 (in £)
Quick assets 57750
Current liabilities 35000
Quick ratio 1.65
Interpretation- Based from the above knowledge of the company's quick ratio, it can be
analyzed that quick ratio of the company is 1:65. It is good outcome that presents good liquidity
position of the business and near to ideal ratio. The company capable pay loan immediately
without any problem. The ideal fast ratio is essentially 1:1, which implies that the business ought
to have fast resources equal to the maximum obligations. Thus it can be perceived how the above
business does not have sufficient quick profit to cover its obligations.
Profitability ratio- there is a type of ratio being measured to determine the profit-generating
ability of a company. It also includes different kinds of ratios that are gross profit ratio, net profit
ratio, etc (Powers, Robinson and Stomberg, 2016). Below is Total's Plc profitability Ratio
following companies listed:

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Gross profit- This ratio is computed by taking the gross revenue through the sale. Its formula is
such as: Gross profit/ salesx100.
Particular 2019 (in £)
Gross profit 120000
Sales 250000
Gross profit 48%
Interpretation- Based on the above Total Plc company information, it can be analyzed that
perhaps the purchases and gross productivity of the business are going to increase. Along with,
growing the gross profit ratio 48%. As such, this can be perceived that the monetary situation of
the company is nice.
Net profit ratio- This ratio is calculated by this formula which is as follows: net
profit/sales x 100.
Particular 2019 (in £)
Net profit 46900
Sales 250000
Net profit ratio 0.19
Interpretation- Based on Total Plc Corporation’s earlier in this thread-mentioned financial
results, it is calculated that the revenue of the company is consistently rising. Net profit in 2019
was 46900 and sales 250000. After all the calculation get results 19%. Then it can be perceived
that even after deduction of all of the taxation, the business generates a healthy profit.
Return on capital employed: Return on used capital (ROCE ) is a financial ratio that could be
used to determine the strong financial efficiency of the organization. In other terms, the ratio will
help to explain how well a business produces its total revenue.
EBIT / Capital employed * 100
Particular 2019 (in £)
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EBIT 120000
Capital employed 480000
Return on capital employed 25%
Capital employed = Total assets – current liabilities
= 515000 – 35000
= 480000
Interpretation: From the above table analysed the return on capital employed of the company in
the year of 2019 which was 0.16. A higher ROCE means a higher proportion of the valuation of
the firm will eventually be distributed to shareholders as income. As a basic guideline, the ROCE
should be equivalent to at least two times the current valuations to suggest a business makes
relatively productive use of resources.
Cash flow statement: From the cash flow statement of Tesco Plc, it is analysed that net
operating cash flow 2.61 billion in 2019 and 98 million in 2020. It was lower in 2020 as compare
of 2019 due to paid loan on interest. By comparing cash from operating activities to the
operating earnings of the corporation, an examination of cash flow statements will show several
items, such as the quality of financial information. For instance, when cash from operating
activities is greater than net earnings, profits have been shown to be better. By the analysis of
investing activities it is getting that in 2020 get positive results from the investment.
P5 Benefits of International Accounting Standards (IAS) and International Financial Reporting
Standards (IFRS)
Financial statements refer to the amount of the business object's rules, theoretical methods,
concepts and rules for correctly reporting financial acumen and records. In an effort to ensure
continuity in financial reporting across the globe, certain standards encourage common processes
and strategies that different foreign business entities need to adopt. A corporate entity intends or
produces a financial statement by enforcing financial reporting standards that help create trust
among customers and companies. TESCO has acknowledged several relevant criteria for
financial reporting, as follows:
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International accounting standards: These are the initially implemented International
Accounting Rules. Those specifications are currently being replaced by global standards for
financial reports. Those requirements are published by the international Accounting Standards
Committee (IASC)(Zainudin and Hashim, 2016). The key aim of this would be to reach better
integrity and accountability and the outcome of financial statements. These requirements are also
improving growth of international trade.
IFRS: It serves as a common system of regulations used by businesses that run their business
worldwide to start preparing accurate, equivalent and consistent financial reports. Popular
guidelines are laid down by the International Financial Reporting Standards (IFRS) so that
financial statements can be reliable, accessible and equivalent globally. The International
Accounting Standards Board (IASB) issues IFRSs. They determine how businesses need to
manage and monitor their records; classify kinds of payments, and other economic effect
occurrences. In order to provide a generally accepted accounting framework, IFRS has been
developed so that companies and their financial statements can be precise and reliable from
employees and external partners to nation.
Benefits of International Accounting Standards and International financial reporting
standards:
Therefore, the therefore are some of the main advantages of international financial reporting
standards:
Provides comparability- In financial statements, the international financial reporting standards
deliver reliability to the organisation. In particular, in preparing financial statements with such an
equivalent standard, certain businesses that have situated in various nations will then be
beneficial for them.
Flexibility- IFRS gives businesses versatility to comply with the rules as needed by them. There
are, however, some provisions that are obligatory to be met, but in preparation of the financial
statements it provides some versatility for the entities.

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Improves foreign investment- One of the major benefits of the IAS is that foreign development
is increased. It is therefore convenient for shareholders to determine the financial position if
businesses apply the rules and regulations of global accounting standards.
Beneficial for existing and new companies- For new and small companies, the international
financial reporting principles are helpful. That's why it will assist the new organisation with
greater precision and consistency in the preparation of financial results. Along with, directing the
micro and experimental company to follow a clear financial statement rule and format. While the
financial services are not a new enterprise, it helps them reasonably and correctly prepares their
financial reports.
• Financial information provided by businesses with the implementation of these criteria allows
firms to maximize deliberate expenditure.
• Such criteria provide versatility to compensate for any unforeseen or predicted position in the
external business climate, as they are based on specific concepts (Hong Hung and Zhang, 2016).
• Companies benefit from these requirements in increasing their resources with minimal costs in
the international economy.
P6 Models of financial reporting and auditing.
There are several methods of financial reporting and auditing which are used by the
organizations and some of them are as follow:
Equity theory: This was a promoter of ongoing enhancement of the financial reporting
principles and procedures. It concluded that the primary purpose of financial reporting would be
to include knowledge that can be helpful in decision making process of organization regarding
several investments.
Pros: With the help of this theory, every person gets the opportunity to share their views
or thoughts which further helps the managers to make effective decisions.
Cons: It is one of the effective theories but it will take enough time to consider
everyone’s view on particular mater in order to provide equality in decision making
process. Basically it is time taken as well as costly process to implement.
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Contingency theory: This is a theoretical viewpoint on organizational activity that
underlines how contingencies or constraints, such as age, economic uncertainty, technologies and
environmental stresses, influence the creation and operation on organizations.
Pros: The approach is complex in nature. So, it varies depending on the circumstance. It
helps managers to adjust their strategies as per the scenario.
Cons: The suggestion of an approach is quite simple, however when it comes to
sustainable matters it becomes more complicated. Often the control of conditions
becomes complicated for the manager.
Legitimacy theory: The legitimacy theory in our conceptualization is a method which
fundamental frequencies in the implementation. Develop voluntary social and environmental
disclosures are for the fulfilment of their enabling social contract.
Pros: Company is operating in long run or for the stakeholders of the company instead of
providing bad impact upon them.
Cons: If there is a wide gap among legitimacy, it could be said that it could threaten the
credibility and reputation of the company that would bring an end to the business
operations.
By using above mentioned theories, managers of Tesco effectively complete their financial
reporting and auditing process with the help of contingency theory. It further leads to achieve
business goals & objectives.
The three statement model is a type of model concerned with the planning of the
balance sheet, income statement and working capital in combination. Finally, this model is
beneficial for businesses and shareholders since all three claims can be interpreted in a
consolidated statement because of this method. Essentially, through the use of relevant
equations, this method is used on Excel board. The Tesco Plc is using this type of financial
reporting to collectively plan the cash position, sales statement and cash flows.
Merger model- The merger model is helpful in evaluating the integration of two or more
firms into a joint venture. This model is an innovative framework that illustrates the combining
and acquisitions of companies. In addition, this model describes all financial data, namely the
combined companies' assets, liabilities, revenue, taxes, etc. The Tesco Plc will be using this
model if they integrate into some other business.
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P7 Critically evaluate the differences and importance of IFRS in different countries
Every organization in modern environment needs a set of predetermined rules and
regulations to implement its financial transaction and record then in proper way or produce
several financial reports (Roychowdhury, Shroff and Verdi, 2019). This allows company to add
productivity to their market processes and create more income. As a result, large numbers of
investors are attracted and long-term market share is improved. The International Accounting
Standard (IAS) is considered to be the series of qualified standards or principles that support
companies in recording each company transaction at the correct place. On the other hand, IFRS
are the recently formulated laws that direct the business accountant to hold a straightforward
financial statement in order to prevent the risk of false reporting. It is noted that the definition of
IAS and IFRS has been misunderstood for several times by accounting professionals. There is a
fundamental difference which is discussed below:
International accounting standard International financial reporting
standard.
Those have been accepted as being the
traditional and main accounting theory practiced
by corporations.
It is classified as the new fully-specified
concept that is accompanied by
approximately every big and small
company at international level. These
standards have ability to report company
purchases at the right moment into final
account.
The International Standard Accounting
Committee analyzes all relevant decisions if any
business uses IAS in its accounting treatment
The International Accounting Standard
Board is the constitutional justification for
conducting an analysis and measuring
business performance if IFRS is enforced
to record transactions.
IASC established by the International
Accounting Code in 1973. Therefore all of these
are redundant and business shifts to IFRS.
In 2001 IASB set the International
Financial Reporting Code. They are now
internationally recognized and each country
has embraced they values.
The main three advantages of IAS are that, it Benefits include the improved

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provides competitive advantages, reducing the
cost of preparing financial records and improved
reliability and credibility of financial reports.
comparability with other businesses in the
industry, potential increased business
follow-up and more effective pricing of
resources. Unfortunately, in the cost /
benefit analysis of IFRS adoption,
advantages are less observable than
expenses and more hard to measure.
There is a disadvantage to the versatility that
IFRS allows businesses can only use methods
they choose, enabling financial statements to
display only the expected results. It can lead to
manipulation of sales or profit, could be used to
mask financial issues in the business and can
even promote fraud. For example, adjusting the
inventory valuation method will add more
revenue to profit and loss statement for financial
year, making the business future to create wealth
than it actually is.
It will raise the cost of compliance for
small companies, concentrate on standards
abuse, demand global consistency in
auditing, and raise the quantity of work
being performed on accountants.
Factors influence the international differences in financial reporting
There are several factors which influence the financial reporting such as accounting
standard which are used by the different companies to record their business transactions. For
example: in the UK, mostly organizations follow the GAAP or IFRS principles but in US, almost
every company implement GAAP accounting principle which includes several standards which
organizations has follow for accurate financial report (Stolowy and Paugam, 2018). In addition,
Australia follows AASB standards which stand for Australian Accounting Standards and that is
similar to the IFRSs. These financial reporting standards create international differences which
influence the decision making process of international investors. GAAP accounting principles
followed by the several countries organizations such as US, UK, Europium Union etc. but
conceptual framework of IFRS used in US GAAP but not in practical. On the other side, UK
GAAP used such IFRS concept in practice to evaluate true or fair view. In US GAAP,
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organizations can show their format in single or multiple format, but in case of UK GAAP there
are specific four alternative format which specified in Company Law.
CONCLUSION
It can be inferred on the basis and the above-mentioned project study that financial reporting
is very critical to the organizations. In the end, the main objective of these findings should be to
provide businesses with the crucial data. The precision, reliability and transparency are among
some of the quality dimensions of the results described in the study. Including this article, it
focuses on the introduction of International Financial Reporting Standards (IFRS) for income
statement planning. This is so even though IFRS has a number of significant advantages in
finding out the level of consistency in any organization worldwide.
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REFERENCES
Books and Journals
Aifuwa, H.O. and Embele, K., 2019.Board Characteristics and Financial Reporting. Journal of
Accounting and Financial Management. 5(1). pp.30-44.
Alzeban, A., 2019. Influence of internal audit reporting line and implementing internal audit
recommendations on financial reporting quality. Meditari Accountancy Research.
Amidu, M., Yorke, S.M. and Harvey, S., 2016. The effects of financial reporting standards on tax
avoidance and earnings quality: a case of an emerging economy. Journal of Accounting
and Finance. 16(2).
Balsmeier, B. and Vanhaverbeke, S., 2018. International financial reporting standards and private
firms’ access to bank loans. European Accounting Review. 27(1). pp.75-104.
Hadi, A.R.A., Suryanto, T. and Hussain, M.A., 2016.Corporate Governance Mechanism on the
Practice of International Financial Reporting Standards (IFRS) among Muslim
Entrepreneurs in Textile Industry-The Case of Malaysia. International Journal of
Economic Perspectives. 10(2).
Kimbro, M. B. and Xu, D., 2016. Shareholders have a say in executive compensation: Evidence
from say-on-pay in the United States. Journal of Accounting and Public
Policy.35(1).pp.19-42.
Lewis, C. and Young, S., 2019.Fad or future?Automated analysis of financial text and its
implications for corporate reporting. Accounting and Business Research, 49(5), pp.587-
615.
Omran, M.A. and Ramdhony, D., 2016. Determinants of internet financial reporting in African
markets: the case of Mauritius. The Journal of Developing Areas. 50(4). pp.1-18.
Pelger, C., 2016. Practices of standard-setting–An analysis of the IASB's and FASB's process of
identifying the objective of financial reporting. Accounting, Organizations and Society.
50. pp.51-73.
Perera, D. and Chand, P., 2015. Issues in the adoption of international financial reporting
standards (IFRS) for small and medium-sized enterprises (SMES). Advances in
accounting.31(1).pp.165-178.
Powers, K., Robinson, J.R. and Stomberg, B., 2016. How do CEO incentives affect corporate tax
planning and financial reporting of income taxes?. Review of Accounting
Studies.21(2).pp.672-710.
Zainudin, E .F. and Hashim, H. A., 2016.Detecting fraudulent financial reporting using financial
ratio. Journal of Financial Reporting and Accounting.14(2).pp.266-278.

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Hong, H.A., Hung, M. and Zhang, J., 2016. The use of debt covenants worldwide: Institutional
determinants and implications on financial reporting. Contemporary Accounting
Research. 33(2). pp.644-681.
Roychowdhury, S., Shroff, N. and Verdi, R. S., 2019. The effects of financial reporting and
disclosure on corporate investment: A review. Journal of Accounting and
Economics. 68(2-3). p.101246.
Stolowy, H. and Paugam, L., 2018. The expansion of non-financial reporting: an exploratory
study. Accounting and Business Research. 48(5).pp.525-548.
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APPENDICES
Operating Activities
Fiscal year is March-February. All values GBP
millions. 2019 2020
Net Income before Extra ordinaries 2.65B 2.52B
Depreciation, Depletion & Amortization 2.05B 2.16B
Depreciation and Depletion 1.75B 1.79B
Amortization of Intangible Assets 295M 367M
Deferred Taxes & Investment Tax Credit - -
Deferred Taxes - -
Investment Tax Credit - -
Other Funds (1.44B) (1.05B)
Funds from Operations 3.26B 3.63B
Extraordinaries - -
Changes in Working Capital (648M) (3.53B)
Receivables (1.47B
) 612M
Accounts Payable 1.04B (4.24B
)
Other Assets/Liabilities (222M
) (82M)
Net Operating Cash Flow 2.61B 98M
Investing Activities
2019 2020
Capital Expenditures (1.29B) (1.2B)
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2019 2020
Capital Expenditures (Fixed
Assets) (1.1B) (1B)
Capital Expenditures (Other
Assets)
(191M
)
(201M
)
Net Assets from Acquisitions (715M) -
Sale of Fixed Assets & Businesses 294M 4.25B
Purchase/Sale of Investments 511M (694M)
Purchase of Investments (133M
)
(702M
)
Sale/Maturity of Investments 644M 8M
Other Uses - -
Other Sources - -
Net Investing Cash Flow (1.2B) 2.35B
Financing Activities
2019 2020
Cash Dividends Paid – Total (357M) (656M)
Common Dividends (357M) (656M
)
Preferred Dividends - -
Change in Capital Stock (146M) (149M)
Repurchase of Common &
Preferred Stk. (206M) (149M
)
Sale of Common & Preferred
Stock 60M -
Proceeds from Stock Options 60M -

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2019 2020
Other Proceeds from Sale of
Stock - -
Issuance/Reduction of Debt, Net (1.5B) (456M)
Change in Current Debt - -
Change in Long-Term Debt - -
Issuance of Long-Term Debt - -
Reduction in Long-Term Debt - -
Other Funds 35M (17M)
Other Uses - (17M)
Other Sources 35M -
Net Financing Cash Flow (2.57B) (1.91B)
Exchange Rate Effect 15M (42M)
Miscellaneous Funds - -
Net Change in Cash (1.14B) 492M
Free Cash Flow 1.51B (905M)
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