Financial Accounting Assignment - “Dixons Carphone”
15 Pages4365 Words378 Views
Added on 2020-11-12
Financial Accounting Assignment - “Dixons Carphone”
Added on 2020-11-12
ShareRelated Documents
FINANCIALREPORTING
Table of ContentsINTRODUCTION...........................................................................................................................1LO1..................................................................................................................................................1P1: Analysis of context of financial reporting including regulatory frameworks andgovernance of financial reporting...............................................................................................1P2: Analysis of purpose of the financial reporting for meeting organisational objectives,development and growth.............................................................................................................2LO2..................................................................................................................................................3P3: Interpretation of profit and loss, cash flow and balance sheet..............................................3P4: Financial ratios for organisational performance and investments........................................4LO3..................................................................................................................................................6P5: Benefits of International Accounting Standards (IAS) and International FinancialReporting and Standards (IFRS) ................................................................................................6P6: Evaluation of models of financial reporting and auditing....................................................7LO4..................................................................................................................................................8P7: Differences and importance of financial reporting across different countries:.....................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONFinancial reporting means disclosure of the financial results and other relatinginformation of management and the external stakeholders like investors, customers etc. relatingto the company's performance over a specific period of time. Financial reports include statementof financial position, income statement, statement of change in equity and cash flow statement.The primary motive of financial reporting is to provide information which are relating to thefinancial position and changes in the financial position in the business of organisation like“Dixons Carphone” that is useful in making effective economic decisions. This report is dividedinto four tasks. First task contain analysis of context of financial reporting framework and itspurpose for meeting organisational objectives. Second task contains interpretation of financialstatements, third task defines the financial reporting standards and its theoretical models andstandards. Last task contains evaluation of international differences in financial reporting.LO1P1: Analysis of context of financial reporting including regulatory frameworks and governanceof financial reportingFinancial reporting is the process in which financial statements of the organisation aredisclosed for management, investors and the government. Regulatory framework provides rulesand regulations for the purpose of accounting(Alyousif and Kalenkoski, 2017). The InternationalAccounting Standards Broad (IASB) provides a regularity frameworks for accounting in form ofinternational accounting standards(Feng, 2018). Regulatory framework combines the legalobligations and regulations which are set by the UK higher authority for accounting which areused by companies like Dixons Carphone. Regulations of IABS which are helpful forstakeholder which are imposed in specific format of IFRS are as follows:International Financial Reporting Standard(IFRS): These are introduced throughIASB. This body is responsible for formulating the principles and regulatory norms. Some of theprinciples are:IFRS 1: It is used in initial implementation of IFRS, on which companies IFRS will beadopted. It would have related to the Dixons Carphone for preparation and presentation offinancial statements.1
IFRS 3: It is used in merger and acquisition. It would assist organisation to sell ortransfer assets and liabilities in case of amalgamation and merger. Regulatory frameworks and governance of financial reporting:It is a responsible for guiding organisation and helps in attaining overall aims andobjectives of Dixons Carphone during future time. The main purpose of these framework is toexamine business performance, which helps the stakeholders to take decisions regardingcompany (Hung and Chuang, 2012). The objectives of regulatory frameworks and governancerelated to international regulations are:Quality of financial statements: This means specific features of the financial statementsand information that assist to make reliable decision.Relevance: Actual and correct data are recorded by the organisation helps theorganisation to achieve its goal.Faithful representation: The financial information used in preparation and presentationof financial statements helps in making financial decisions for stakeholders.Effect of financial reporting on government, investors and directors:Government: Financial reporting includes financial statements that discloses financialresults and related information to management and stakeholders. Government being an externalstakeholder gain true and fair information regarding financial position of Dixons Carphone.Calculation of tax imposed by government is calculated on this information and this serves asmain source of revenue for government. Investors: Financial information of an organisation provides real situation and conditionof the Dixons Carphone. This gives a fair chance to investors to analyse different investmentoptions and select most productive. For this analysis financial statements are used that givescorrect information required in decision making. Directors: Directors are the one who operates business functions in Dixons Carphoneorganisation. Before performing multi-pal business activities planes and policies are designedthat gives basis to set objects for business that will be achieved in long run. Directors byanalysing the financial statements decides that company is performing as per plans or not andcorrective action are taken. 2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
International Financial Reporting Standards: Doclg...
|22
|3336
|34
Financial Reporting in Global Marketslg...
|18
|5597
|90
Purpose of Financial Reporting - Doclg...
|16
|3312
|175
Financial Reporting and Analysis (doc)lg...
|14
|3356
|434
International Financial Reportinglg...
|17
|4122
|28
Financial Reporting: Assignmentlg...
|18
|4797
|439