Management Accounting and Finance for Decision Making

MANAGEMENT
ACCOUNTING
AND
FINANCE FOR
DECISION MAKING

Contents
QUESTION 1..................................................................................................................................3
1.1 Judgementally assess the International Financial Reporting Standards (IFRS) acceptance
from the viewpoint of encouragement accounting practice coordination:..................................3
1.3 Calculate the working capital, working capital requirement and remaining cash:................8
1.4. Calculate the common-size revenue accounts for the 2017-2020 periods:..........................9
1.5 Assessment of Balance sheet and revenue statement:.........................................................10
1.6. Calculate Profitability Ratios and examines them from the viewpoint of gaining insight
into competence of use of corporation funds:............................................................................11
Question 2:.....................................................................................................................................14
2.1 Cash budget of Alpha limited:.............................................................................................14
2.2 Scrutinise how corporate reliance on budgets are affected by foremost variations in the
monetary situation:....................................................................................................................16
REFERENCES..............................................................................................................................20

QUESTION 1
1.1 Judgementally assess the International Financial Reporting Standards (IFRS) acceptance
from the viewpoint of encouragement accounting practice coordination:
International Financial Reporting Standards is global accounting approaches wherein file of
monetary statistics is prepared. These monetary statements may be comprehensible and similar
throughout the country. Such monetary statements are primarily based totally on proportion of a
organisation that are indexed in public inventory alternate and organisation’s statements. Many
accounting requirements are changed whilst global Financial Reporting Standards are carried out
however it isn't always changing United kingdom's separate accounting preferred “GAAP”. This
framework is needed in extra than a hundred and twenty countries. International Financial
Reporting Standards is a framework that's used as a not unusual place international language for
enterprise affairs. The principal reason to undertake those preferred is to recognize any
organisation money owed throughout all around the world. Companies are requiring to make
monetary reviews and consequences the usage of International Financial Reporting Standards
(Ahn, Clermont, and Schwetschke, 2018).
Here are some objectives of International Financial Reporting Standards:
 The important item is to undertake International Financial Reporting Standards is to
understand, evaluate and preserve transparency withinside the monetary statements of an
employer that is located everywhere withinside the world.
 To set up insurance of International Financial Reporting Standards for excessive pleasant
solutions.
Importance of International Financial Reporting Standards:
1. Transparency: International Financial Reporting Standards are assisted to preserving accuracy
and transparency withinside the economic statements which can be organized via way of means
of companies, authorities and organizations etc. The essential reason is to hold consistency and
readability of their statements.
2. Security and Flow: IFRS assist in recording and monitoring economic transactions. It Provide
safety to the countrywide investments of any country (Alsaifi, Elnahass, and Salama, 2020).
3. Accountability: International Financial Reporting Standards offer help and power via way of
means of lowering the distance of unqualified economic reporting.

Advantage and Disadvantage of International Financial Reporting Standards:
Benefits Limitations
Companies the usage of the IFRS can examine
its economic reviews with the alternative
companies.
Some international locations nevertheless
now no longer undertake such framework
wherein United Kingdom is included.
It assists businesses to decide in which their
investments quantity need to gone
Companies has to make sort of record
wherein one is the use of IFRS and any other
with American typically accepted accounting
principles.
Difference between Generally Accepted Accounting Principles and International Financial
Reporting Standards
International Financial Reporting Standards states that the monetary reporting preferred which
can be observed with the aid of using globally and encompass policies and law concerning
monetary transactions and monetary statements. Where generally common accounting ideas
refers an ordinary set of all accounting preferred and techniques which can be observed with the
aid of using an agency on the time of making ready monetary statements. Generally common
accounting ideas are coming below ministry of cooperate affairs however International Financial
Reporting Standards are coming below global accounting requirements board. International
Financial Reporting Standards is observed with the aid of using one hundred forty-four nations
internationally in different hand International Financial Reporting Standards are observed with
the aid of using most effective United Kingdom. Companies are making ready their monetary
record in keeping with the International Financial Reporting Standards. United Kingdom
Companies no want to use International Financial Reporting Standards due to the fact they have
got their very own country preferred. International Financial Reporting Standards encompass
Statements of monetary position, declaration of earnings and loss, declaration of extrude fairness
for a period, Statements of coins flows for the period. Generally common accounting ideas
consists of earnings statements, stability sheet and the Cash glide statements (Araz, Choi, and
Salman, 2020).

International Financial Reporting Standards Adoption process:
Term Adoption is used whilst a business enterprise makes use of accounting rule and law of
different USA. Financial Reporting Standards is a totally complicated and worldwide governance
procedure. Adoption of International Financial Reporting Standards happens at nation's courts
and annual and quarterly said with the aid of using nation's entities. Country has to undertake
International Financial Reporting Standards for first time to make a economic assertion. In first
economic assertion business enterprise has to use equal accounting regulations for the duration
of the year. International Financial Reporting Standards offer restrained exemptions for
restrained regions wherein fee of gazing booms the person economic advantages. National
regulations are set to undertake International Financial Reporting Standards. Every USA has to
enforce International Financial Reporting Standards withinside the equal way observed with the
aid of using worldwide accounting trendy board. It is likewise implied that a business enterprise
has placed their USA economic regulations apart and forcefully use different USA's regulations
and regulations (Baker, Kumar, and Gaur, 2018).
Prompting accounting exercise harmonization:
Harmonization refers to growing the requirements of accounting and exercise among nations.
The well-known eye-e book author Christopher and Robert outline Harmonization of their eye-e
book which call is “Comparative International Accounting”. The foremost cause of
harmonization is to create higher expertise of economic reviews and results. There are many
businesses like economic accounting trendy board, worldwide accounting trendy board and
accounting trendy codification are the usage of the procedure of harmonization of accounting
reviews. Harmonization is a procedure which boom the functionality of accounting practices due
to constant limits of variations. Harmonization isn't always simplest preserving uniformity with
the aid of using reducing options comes among the processes however it has to mix the factors of
accounting practices of many nations into orderly structure. Harmonization assists in making
first-class economic reporting. After Adoption of International Financial Reporting Standards,
the primary attention is to push nations toward internationalization of accounting requirements.
International Financial Reporting Standards provide advantages to enterprise and USA are low
fee of capital, go border making an investment expanded, appropriate comparison amongst
economic reviews and overseas evaluation of funding expanded. Use of harmonising accounting
trendy and worldwide Financial Reporting Standards the same old of comparison of indexed

business enterprise's economic statements is expanded and stepped forward. worldwide Financial
Reporting Standards and harmonising accounting trendy triggers hobby of overseas buyers and
analysts. Both the requirements enhance the go-border economic transaction efficiency. It
additionally stepped forward comparison and transparency (Buchheit, Doxey, and Stinson,
2018).
1.2 Generate an abridged balance sheet with three groupings in the assets and three groupings in
the equity and liabilities:
Balance sheet of the company for the year ended 2018 and 2019.
December 31( in millions of $) 2019 2018
Current Assets
Cash and cash equivalents
Marketable securities
Trade accounts receivable (less allowances)
Inventories
Prepaid expenses and other assets
2126
219
2097
1294
1616
1866
68
1882
1055
2300
Total Current Assets 7352 7171
Investment in Marketable securities
Equity method investments:
Honey Badger Plc Enterprises Inc.
Honey Badger Plc Hellenic Bottling Company S.A.
Honey Badger Plc Amatil Limited
Other, principally bottling companies
Cost method investments, principally bottling companies
Other Assets
972
872
492
2401
254
2694
788
791
432
3117
294
2792
Other Current Assets 7685 8214

Management Accounting and
Finance for Decision Making

Table of Contents
Introduction......................................................................................................................................1
Functional areas in business organisation....................................................................................2
Types of skills..............................................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6
1

Introduction
Business functions refer to activities which are being carried out by the organisation it can be
divided into different forms (Cui, 2017). Business function is necessary to run the overall
working of the business effectively. This report focuses on providing in-depth information about
the prime business functions of the organisation. This report also States about different skills
which is important for the employees so that they can perform enthusiastically in all these
business function. This report will assist the management about the business functions and
necessary skills so that organisation can achieve immense success and milestones.
Functional areas in business organisation
Business has to perform different functions such as operational functions managerial functions
marketing accounting and Finance functions. When the business perform all the functions
effectively than only organisation can achieve all the predetermined goals and provide
profitability to the organisation. This case study business must follow all the functional areas in
effective way so that all set goals can be obtained. The major functional areas of business
organisation are being mentioned below:
Management
This function is the most important in the overall business and helps the business to achieve all
the objectives and goals. Management can become possible when there are highly skilled and
knowledgeable managers work so the primary role of managers in the entire business is to
supervise and provide guidance to their employees and help them to improve their overall
performance. Apart from this manager has to perform a lot of responsibilities within the business
organisation such as
Planning
This organisation can only attend goal when the managers make proper planning and Strategies
for the long term as well as short term goals for that by executing the strategies this business can
attend good profit for long run.
Organising
Managers are liable for organising all the operations within the business in the effective manner
so that it can provide best outcome.
Controlling
2