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Project Report on Financial and Management Accounts

   

Added on  2020-06-04

11 Pages2965 Words30 Views
Finance
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MFR
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Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1: Comparison among financial and management account .....................................................31.2: Identify and make analyse of vital objectives of using financial statements.......................51.3: Various group of stakeholders and evaluating their vital data.............................................6TASK 2............................................................................................................................................8a): Calculation of various ratios..................................................................................................8b): Compare the overall performance and present position .......................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
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INTRODUCTIONNowadays, it has been seen that finance is an essential aspect that is associated withlearning of every capital investments. It deals with dynamics of assets and debts over the timeunder the given situations of various stages of uncertainty present in any decision-making. It hasbeen found that without having proper availability of funds, a business cannot survive for longerperiod of time. This project report provides crucial information about financial and managementaccounts. Moreover, the purpose of using financial statements in both profit and non-profitorganisations has been described in the assignment. Evaluation of different group of stakeholdersand make analysis of required data. The overall data of “Stratford Yachts Ltd” will be analysedby using various types of ratios (Allen, 2012). TASK 11.1: Comparison among financial and management account Illustration 1: Comparison of financial and management account(Source: Jackie, 2012)It has been seen that every business organisation needs to make use of accountinginformation in order to have proper evaluation of current year performance of the company. Asper the mentioned case study of “Stratford Yachts Ltd”, they are not able be introduce newproduct lines. Traditional products are the major aspects of this company but in recent time, theyhave generated maximum turnover to maintain their overall performances. After making properoverview regarding various departments and other essential things, they have decided to appoint3
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a new management consultant who can assist the company to increase its growth and overallperformances (Cascio, 2018). It is necessary for Stratford Yachts Ltd to manage their financial statements in moreeffective ways so that chances of getting maximum benefits can be enhanced. In accordance toevaluate performance of an organisation, it is necessary to make use of both financial as well asmanagement details at the same time. They are happens to be more vital part of any businessenterprise. By they do have certain similarities which will be explain underneath:Basic Financial accounts Management accountsDefinition The financial statements are acrucial aspects of every businessconcern that provide overallperformance of the company. Whereas management may use thefinancial statements for the futuredecision-making or analysing the overallprofit and losses they are incurred duringand accounting duration.MotiveThe primary objective is to deliverdata to external parties. It totallyfocuses at assisting stakeholders inorder to make effective decision.The vital aims varies as per the situationof companies financial statements. Thisinformation is necessary for evaluatingbusiness decision for future.RegulatoryrequirementsIt is mandatory need for everypublic sector organisation. It isfollowed by using accountingstandards and laws.They do not have to follow any kind ofset format because rule are being alreadyprepared by the company itself.GoverningprinciplesThese are formulated on the basisof Accepted accounting principles.There is no any set standard format forpreparing management accountingstatements.Time HorizonIt has been seen that time horizonfor financial accounting is based onpast mainly for one financial year.It does not have particular time horizonbut the primary focus is on futureestimation.ReportingpartiesThis type of financial data is beingprepared by outside and externalparties. For example, shareholder,suppliers, customers, banks etc.Reports are formulated under internalmanagement guidance which is helpfulfor CEO, director and other promoterthose are crucial part of an organisation.4
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