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Financial Reporting Assignment - Marks and Spencer

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Added on  2020-10-22

Financial Reporting Assignment - Marks and Spencer

   Added on 2020-10-22

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FINANCIAL REPORTING
Financial Reporting Assignment - Marks and Spencer_1
Table of ContentsINTRODUCTION...........................................................................................................................41. Context and purpose of financial reporting.............................................................................42. Requirement of conceptual and regulatory framework and importance of qualitativecharacteristics..............................................................................................................................53. Benefits of financial information to stakeholders....................................................................64. Value of financial reporting for organisational growth and objective.....................................75. statements analysis...................................................................................................................8(a): Income statements.................................................................................................................8(b): Changes in equity..................................................................................................................9(c) Balance Sheet of Godwin PLC...............................................................................................9(d): Statement of cash flow........................................................................................................106. Interpretation of Financial Statements of Marks and Spencer...............................................117. International Accounting Standard (IAS) vs International Financial Reporting Standards(IFRS)........................................................................................................................................128. Benefits of International Financial Reporting Standard (IFRS)............................................139. Varying degrees of compliance with IFRS............................................................................14CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................17APENDIX......................................................................................................................................18
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INTRODUCTIONIn any industry, whether manufacturing and service, multiple departments work forbusiness to achieve its objective and every department is connected with finance department.Financial reporting helps to keep financial and accounting aspects of each and every departmentof business. Financial reporting is a process of producing financial statements that disclosesfinancial status of business. Financial status helps to make decision to management and also tointerested investors. These statements show financial growth of business and also how well fundsare utilised in business to generate revenues. Every organisation works to earn revenues andmanaging funds helps to earn more with financial reporting (Bertoni and De Rosa, 2012). Marksand Spencer is working towards effective financial reporting and to achieve it a report whichconsist of various things is prepared. This report consists of purpose of financial reporting,conceptual and regulatory framework of financial reporting. This also includes qualitativecharacteristics that improve financial reporting, stakeholders that are benefited by financialreporting. Values and objective. Importance and benefits of IAS and IFRS. 1. Context and purpose of financial reportingFinancial reporting is described as disclosure of financial results and related informationto management and external shareholders. Financial status of an organisation can be measured byvarious financial statements that represent financial condition of business. These statements areprofit and loss account, balance sheet, cash flow statements. General purpose of financialreporting is to provide information about results of operations, financial position and cash flowof organisation. This information is used by the readers of financial statements to make decisionregarding allocation of resources. Financial reporting plays a vital role in words economies. Its primary purpose is toprovide financial information to owners of company when there is division in management andownership of company. This occurs in companies like Marks and Spencer which is a publiclimited company that means share capital of company is collected from public at large. Thesecompanies trade in shares through stock exchange (Nobes, 2014). There is geographical disparityin shareholding pattern and that restricts owners to involve in management of company.Directors are appointed by shareholders who takes decision about all the aspects in company.Owners receive annual financial statements that describes them about financial performance of4
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