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Financial Statements of Dalata Hotels Group

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Added on  2020-06-05

Financial Statements of Dalata Hotels Group

   Added on 2020-06-05

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Financial statementsIncome statementThis is also known as Profit & Loss Account. 1.Purpose 2.Content 3.Format Purpose of preparing an income statement is to measure whether the company has made a profit or a loss for a particular period. The companies must prepare this statement annually for every financialyear. For example, for the period ending 31st March2018. Dalata Hotels Group PLC uses January to December as its financial year for reporting purpose.Content of an Income statement1.Sales (Revenue) 2.Profit (Gross Profit, Operating Profit, PBT& PAT) 3.Expenses (Cost of sales, operating expenses, finance Costs, and taxation.) Different types of profits1.Gross Profit = Sales – Cost of sales £40M= £140M - £100M2.Operating profit = Gross Profit – Operating Exp. (Admin Exp.)£15M = £40M - £25MOperating profit is the profit before interest and tax (£15M). Profit Before Taxation = Operating Profit – Finance Costs (Int.)£14M = £15M - £1MProfit After Taxation = PBT – Taxation £10M = £14M - £4MPAT of £10M is the net profit attributable to the equityShareholders
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Format of income statementIncome Statement For The Year Ended 31st March 2018£MSales Revenue 140Less: Cost of sales(100)Gross profit 40Less: Operating (admin) expenses(25)Operating profit 15Less: Finance costs(1)Profit before taxation (PBT)14Less: Taxation(4)Profit after taxation (attributable to equity holders)10Balance sheetIn addition to an Income Statement, the companies are Required to prepare a balance sheet on the last date of Each financial year. For example, Balance-sheet as at 31st March 2018. Balance sheet is also known as statement of financial Position (Balance sheet). A balance sheet is based on a basic accounting equationWhich is also known as balance sheet equation. A = C + L£340M = £200M + £140M1,101,088 = 737,393 +363,695 A = Assets = what are owned and controlled by the company.Examples of assets are: Land and buildings, Plant & Machinery,Furniture and fittings, Motor vehicles, office equipment, Investments, debtors, cash in hand and at bank etc. C = Capital or Equity = £200M = This is owners’ equity which Solely belongs to the shareholders of the company. L = Liabilities = £100 = are Owings to the 3rd parties such as
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Banks – bank loan, mortgage, leaseTrade payables (creditors), tax payableStatement of cash flowsThis is a statement prepared by the companies to show cash inflows, cash outflows, net cash flow, increase/decrease in cash and cash equivalents and the year end balance of the same. There will be three net cash-flows (NCF) in a Statement of Cash Flows: 1.Net cash flow from operating activities (£95.207Mor net cash used in operating activities 2.Net cash flow from investing activities orNet cash used in investing activities (-£134.794M)3.Net cash flow from financing activities or Net cash used in financing activities (-£23.310M)VARIANCE ANALYSISWhat is a variance? Variance = Standard cost – actual costIf the answer is positive, it is favourable and If it is negative unfavourable (in general). Management accounting provides information About positive and negative variances at the end of A production cycle and the management to measureThe performance of the relevance staff and for the Control purposes. The analysis of the variances can help to identify the causes of the variances and recommend remedial actions to minimise the variances in the future.
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