Financial Accounting Report : Assignment
Added on 2020-01-28
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Financial accounting report1
TABLE OF CONTENTSTable of Contents..................................................................................................................................2Introduction..........................................................................................................................................3Accounting ratios Analysis..............................................................................................................3Share price analysis of Persimmon over the 12 months..................................................................5Trend analysis of financial statements of Persimmon.....................................................................7CONCLUSION ...................................................................................................................................9REFERENCES...................................................................................................................................122
Illustration IndexIllustration 1: Ratio analysis.................................................................................................................5Illustration 2: Share price analysis.......................................................................................................7Illustration 3: Interactive chart of Persimmon......................................................................................8Illustration 4: Income statement of Persimmon....................................................................................9Illustration 5: Balance sheet of Permission PLC................................................................................113
INTRODUCTIONFinancial accounting is recording of financial transactions by preparing financial statementsavailable for public to review the performance of the business which helps in taking decision toinvest in the company. Financial accounting is governed by the local and and internationalaccounting standards. Financial statements prepared under this head according to the GenerallyAccepted accounting principles from beginning till its end. Persimmon company has been selectedfor this project report and it is listed in London stock exchange. It is public limited company whichis a British housebuilding company located in York in England. It is a former constituent of theFTSE 100 index in the London stock exchange market.Accounting ratios AnalysisRatio analysis is an quantitative analysis of financial information contained in the financialstatements of the company (Wessels 2012). It is based on line items in financial statements like thebalance sheet income statement and cash flow statements as these are the standard forms of thefinancial statements. These are also known as mathematical comparisons of financial statementsaccounts or categories. It defines the relationship between the financial statement accounts withdifferent stakeholders such as investors, creditors and internal management to understand thebusiness activities. It also denotes different areas in the company which requires improvements.Following are the ratio analysis of Persimmon company of Two years 2014 and 2015 given beloware:4
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