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Financial Reporting of Marks And Spencer

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Added on  2020-10-05

Financial Reporting of Marks And Spencer

   Added on 2020-10-05

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Financial Reporting
Financial Reporting of Marks And Spencer_1
Table of ContentsINTRODUCTION...........................................................................................................................3TASKS.............................................................................................................................................31. Financial Reporting and its purposes:......................................................................................32. Requirement, purpose and key principles of regulatory and concept framework:..................43: Main stakeholders of an organization and their advantage from financial data:.....................64: Analysis of value of financial reporting for meeting organisational growth and purpose:.....75. International Accounting Standards (IAS) and International Financial Reporting Standards(IFRS) and their benefits:.............................................................................................................76. Critical evaluation of the financial reporting in Marks And Spencer Group Plc through theapplication of theories and models to support judgments and conclusions:................................87. Identify the differences in financial reporting across the world and evaluate the factors thatinfluences these differences.........................................................................................................98. Evaluation of degrees of compliance with IFRS by different origination across the world.:....................................................................................................................................................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................12
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INTRODUCTIONFinancial Reporting is a organised field of accountancy that handles activities relatedwith recording of financial events or accounting and, preparation and presentation of variousreports called financial statements. The financial statements exhibits a business organisation'sactual financial condition, outcomes of different operations, performance of functions and tasks,cash flows, ratios and other information. Financial statements contains statement of financialposition or balance sheet, profit & loss account, income statement, statement of changes inequity, cash flows statement and other relevant notes (Bagdonaite, 2014). The main objective offinancial reporting is to furnish relevant information related to financial performance andposition, and significant changes in financial conditions of entity like Marks And SpencerGroupplc that is beneficial to wide range of users in effective decision making. This report coversanalysis of definition of financial reporting and its purpose, conceptual and regulatoryframework and the governance of financial reporting, key accounting principles and theirpurpose and requirement, key stakeholders and their need for financial reports, value of financialreporting for meeting organizational objectives and growth, explanation about IAS and IFRS anddifferences in financial reporting across the world. This report also evaluates financial reportingin Marks And Spencer through application of theories and models to support judgments andconclusions.TASKS1. Financial Reporting and its purposes:Financial reporting refers to systematic disclosure or presentation of financialperformance, outcomes and related information to top management and internal or externalstakeholders such as shareholders, suppliers, investors, customers, regulators etc.) about mannerin which business organization is performing over a particular period. For a business entity, it issignificant to adopt an appropriate reporting systems that helps to achieve business objectivesand goals. In “M&s” financial reporting provide its investors, shareholders and other businessstakeholders about idea of performance, integrity, viability of different running projects andworth of the company. Through results of financial reporting process company can develop aframework for effective decision-making and assess its own management performance, liquidityposition, gearing and potential or existing risk factors (Lu and Fang, 2013).
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According to International accounting standard board companies like “M&S” required tofollow all IAS and IFRS as the case may be for reporting and accounting purposes to makeuniformity and enhance credibility of financial statement. Financial reporting ensures necessarydisclosures to maintain transparency in final accounts. It also helps to avoid window dressing inpreparation of financial statement and presents true and fair view of business organization.Purpose of financial reporting: Following are the key purposes of financial reporting inUK, as follows:Main purpose of Financial Reporting is to report financial data or information ofreporting business organization that is significant of potential and existing investors,creditors or lenders and other parties having substantial interest in reporting entity, intaking vital decisions related to investment and providing resources to organization.It assist in determining compliance of various laws, regulations and policies.It provides accountability to investors, donors, shareholder and other stakeholders.It helps to develop a framework for assessment of actual performance of entity and tocompare actual performance with budget (Singh, 2015). To help managerial personnel of M&S to design appropriate strategic plan in a mannerthat company can achieve targeted sales and profits to gain competitive advantage.2. Requirement, purpose and key principles of regulatory and concept framework:Regulatory Framework of Accounting refers to set of policies. rules and guidelinesrequired for preparation of financial statements. Consideration of these set of rules and guidelineby business organization helps to easily compare financial statements. Regulatory Framework ofAccounting primarily includes International accounting standards and international financialreporting standards for Financial Reporting. Different have been introduced to provideframework for producing fair accounts. In UK main standards are: Statements of StandardsAccounting Practice (SSAP) and Financial Reporting Standards (IFRSs). These both standardsemphasizes on maintaining consistency while preparing different reports for limited publiccompanies. Whereas International Accounting Standards (IASs) and International FinancialReporting Standards (IFRSs) have been introduced to maintain conformity in reports related tolarge international companies.A conceptual framework is set of principles providing universal or generally acceptedguidance to build new reporting practices for latest and new challenges, and to evaluate existing
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