Financial Resources and Performance Management in Bentley Motors

Financial Resources and Performance Management

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
1. Evaluate the impact of the decision on the organization’s financial statements and the relevance of
this impact on the decision......................................................................................................................3
2. Critically analyze the role and limitations of budgets in managing and controlling expenditure.
Approaches to driving value through better budgeting............................................................................5
3. Appraise the role of activity based approaches and strategic management accounting in analyzing the
decision...................................................................................................................................................7
4. Assess the potential for and use of best-in-class benchmarking to support the decision process.........9
5. Appraise the role of treasury management in supporting the decision...............................................10
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13

INTRODUCTION
The term financial resources can be defined as those resources that consists all monetary
aspects such as cash, funds, loans and many more. These financial resources are too crucial for
companies in order to perform range of business activities (Salehi, Mahdavi and Tarighi, 2019).
In the absence of proper financial resources this may become difficult for companies to sustain in
competitive environment. Performance management is the process to ensure that the sequence of
functions and inputs meets the goals of the enterprise in an effective and timely way.
Performance management is focused on the performance of organizations, a unit, a worker, or
the procedures in needed to handle specific task. The project report is based on a company that
is Bentley Motors which is a British manufacturer and marketer of luxury cars. This company
was founded in year 1919 and located in London, United Kingdom. The project report covers
detailed information about impact of decision on companies as well as limitations of budgets.
Along with role of treasury management is also explained in the report.
MAIN BODY
1. Evaluate the impact of the decision on the organization’s financial statements and the
relevance of this impact on the decision.
Financial accounting enables an enterprise to keep records of all money transfers. It is the
responsibility of the business documents and reviews all the financial information that goes into
and out of its operational activities. The financial reporting data are collected on a series of
financial declarations such as the balance sheet, assertion of revenue and statement of cash flow.
Companies adhere to a sequence of accounting standards in their financial reporting. Most U.S.
publicly traded companies’ follow the generally accepted accounting principles (GAAP), a
common set of auditors follow when completing their income reports. Except the U.S.
corporations typically adopt certain global standards which differ by area and culture. Financial
planning is a way for companies to track their operational activities but also to include a picture
of their economic condition. A company gives shareholders and borrowers more authority in

their decision-making by providing information via a wide range of declarations such as the
financial statements and statement of comprehensive income. Financial statements relates to
common procedures to give stockholders an accurate representation of a company ’s financial,
such as their revenues , expenses, earnings, capital and working capital, as structured documents
that can provide in-depth insights into financial data. When analyzing the financial statements,
the most obvious feature is that it gives investors the opportunity to invest about choosing to
invest their money in a particular company. Analysis of financial results is important for policy
departments in determining the taxes owed to the business (Khan, Yang and Waheed, 2019).
There are three main areas where financial accounting helps decision-making:
 It gives stakeholders with a base point of assessment for the fiscal viability of financial
assets-issuing corporations — and comparisons between them.
 It helps lenders evaluate corporate solvency, cash flow and financial health.
 It lets companies make choices on whether to distribute finite money, along with its
relative, administrative accounting.
Investing decision- Fundamental modeling is highly based on a company's balance sheet, cash
position and revenue statement. All financial reports for publicly listed enterprises are formed
and confirmed in accordance with the Financial Accounting Standard Board (FASB) norms.
Investors use the financial reporting details to make assumptions about a share profits and
financial health. Despite the details presented by the financial statements, creditors will have no
knowledge of the stock and bond issuers' past and overall financial performance. The FASB’s
responsibilities standardization phase in the scheduling and appearance of accounting records,
meaning investors are less susceptible to financial reports that has been processed depending on
the latest situation of a firm.
Lending decisions- Cost reporting also represents a key for lending institutions. Even though
financial reports outline all of its resources and short- and long-term debt, borrowers get a clearer
idea of the credit ratings of a corporation. A number of major financial ratio on which lenders
rely, including the debt-to - equity (D / E) ratio and the quick ratio reasonable alternative, are
extracted from the financial statement. Even for privately run enterprises that do not inherently