Application of IAS-36 by Reckitt Benckiser Group PLC: Impairment of Goodwill and Financial Risk Management - UMACTT-15-M

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Written Assignment – Component B
Advanced Corporate Reporting
Instructor:
Word count: 2060

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Executive Summary
Reckitt Benckiser Group PLC commonly known as Reckitt is a multinational consumer goods
corporation headquartered in England that produces nutrition, hygiene and health products. The
report has shed light on the application of IAS-36 by the “Reckitt Benckiser Group PLC” to
“value its assets” and “impairments of goodwill” in the firm. The firm has been reflecting,
“Impaired value of goodwill” to “985 million pounds” at the end of financial period of 2020.
The report also includes the information’s related to the financial instruments used by the
company. In the analysis report, the financial risk management analysis of Reckitt is mentioned
along with critical revelation of their benefits pension plans that are impaired with IAS 39 and
IFRS 9. These financial statements are impaired with the IASB conceptual framework that
reflects the qualitative characteristics.

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Table of Contents
1. Introduction..............................................................................................................................4
2. Analysis and discussion of the accounting policy....................................................................6
2.1 Depth analysis and synthesizing question 2 (a).....................................................................6
2.2 Depth analysis and synthesizing question 2 (b).....................................................................9
2.3 Depth analysis and synthesizing question 2 (c)...................................................................12
3. Conclusion..............................................................................................................................15
References......................................................................................................................................16

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1. Introduction
“Reckitt Benckiser Group PLC” commonly known as Reckitt is a multinational consumer
goods corporation headquartered in England. The market capitalization of Reckitt is 54.935
Billion along with a “Forward Dividend & Yield” of 0.47 and market volume of 299,562. Based
on the financial highlights of the last released annual report of 2020 this company has revealed
its revenue generation to be £14.0bn (Reckitt.com, 2020). The regulatory framework of Reckitt
is impactful regarding the funding basis that will be caused by the changes in regulations, which
are objectified to keep consistent and transparent by Reckitt. The regulatory framework of the
company consists of corporate governance, environmental issues, interim reporting and even
social disclosure reports.