logo

Financial Reporting Assignment - Mark and Spencer

15 Pages4197 Words177 Views
   

Added on  2020-11-12

Financial Reporting Assignment - Mark and Spencer

   Added on 2020-11-12

ShareRelated Documents
FINANCIAL REPORTING
Financial Reporting Assignment - Mark and Spencer_1
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY ..................................................................................................................................11. Explanation of Financial Reporting and its purpose in business entity..................................12. Description regarding the requirement, purpose and principles of the regulatory andconceptual framework ................................................................................................................33. Identification of the different stakeholders of the organisation and analysing the benefits offinancial information ..................................................................................................................44. Examining the meaning of financial reporting for meeting organisational objectives andgrowth ........................................................................................................................................55. Interpretation of the financial statements of the business entity.............................................66. Evaluation of last two years of financial statements of company and their use to interpretand communicate the financial performance..............................................................................87. Differentiation between IAS and IFRS.................................................................................108. Evaluation of the benefits of International Financial Reporting Standard (IFRS)................119. Ascertainment of varying degree of compliance associated to IFRS ..................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
Financial Reporting Assignment - Mark and Spencer_2
INTRODUCTIONThe financial reporting refers to the process of preparing statements that depicts thebusiness entity's financial status to management, investors and the government. It involves thecommunication of the financial information, such as financial statements to its internal andexternal users. Financial reporting comprises with the preparation of the financial statements anddisclosure of the financial statements according to the International Financial ReportingStandards. Reporting involves the financial statements like balance sheets, income statement,statement of owner's equity and statement of cash flows. But the financial reporting is broaderconcept than the preparation of the financial statement (Bertoni and De Rosa, 2012). Moreover,the financial reporting pertain communication of all financial facts from the business to internalusers (it includes managing directors, BOD' s, equity shareholders etc.) and external users (itincludes the tax authorities, potential investors, government authorities, financial institutions). This report pertain the information about the Mark and Spencer of United Kingdom. Thepurpose of this report is show the context and aim of the financial reporting, requirements as wellas the principles of conceptual framework, stakeholders of the business entity, preparation andthe disclosure of the financial statements and their objectives. Along with this, the report alsopertain the context of benefits of International Financial Reporting standards (IFRS) andInternational Accounting Standards (IAS). Although the difference between the IFRS and IASalso mentioned in the report. MAIN BODY 1. Explanation of Financial Reporting and its purpose in business entityFinancial Reporting is the form of financial results of a business entity to its useful users.Financial reporting encompasses the financial statements which involves the consolidate incomesstatement, consolidate statement of balance sheet and consolidate statement of cash flows, alongwith these statements the report pertain the footnote notes for more details regarding the relevantaccounting framework and events occurs after the preparation of financial statements of thebusiness entity like Mark and Spencer (UK). These financial statements are to disclose for itsuseful users like the tax authorities, investors, managing directors, BOD' s, equity shareholdersetc. Moreover, the financial reporting consists disclosure of financial statements, press releasesand conference calls about the earning of quarters and other business entity's relevant1
Financial Reporting Assignment - Mark and Spencer_3
information. Along with this, the annual or quarter reports of stockholders, disclosure offinancial report online on entity's website, disclosing reports to the government authorities aswell as the reports to the securities exchange commission (SEC). Overall, the Transparency offinancial records are beneficial in accomplishment of desired organisational goals that arerequired to execute organisational operations(Nobes, 2014). Marks and Spencer is prepares andreports the financial statements in order to make smooth functioning of business entity and toperform all the business operations effectively. Purpose and importance of financial reporting isas follows: Financial reporting provides the financial information and helps the mangers of thebusiness entity like Marks and Spencer in performing their daily management activitiesand the business operation. It is beneficial in evaluating the market value, financial performance of the businessentity like Mark and Spencer for performing the management functioning like planningand decision making. Financial reporting ensures the transparency of the financial statements of the business bythe disclosing the annual reports to its internal and external users (Zimmerman, 2013).Beneficial for managers in process of planning and controlling the future businessactivities. Financial reporting facilitates the annual results of the entity's operational work toexternal stakeholders to increase sales with the motive to increase revenues and profit andthe market share. Financial reporting helps the business entity in getting the funds or loans from thefinancial institutions, as the reporting shows the financial position and the market share ofthe entity so it helps in acquiring loans from the financial institution. Importance of the Financial Reporting to the business entityFinancial reapportion is essential part of the accounting, as the report is use to analyse thefinancial as well as the operational performance of the business entity. Financial reporting is crucial for targeting the large number of potential investors. It is inevitable in the process of decision making and planning for the future businessoperations (Flower, 2016).2
Financial Reporting Assignment - Mark and Spencer_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Financial Reporting of Marks And Spencer
|12
|3969
|327

Financial Reporting Assignment - Marks and Spencer
|19
|4936
|487

Report on Conceptual and Regulatory Framework of Financial Reporting
|18
|4548
|201

Financial Reporting Answers Assignment
|16
|4490
|68

International Accounting Standard Board
|9
|896
|64

Purpose of Financial Reporting - PDF
|13
|3727
|149