Financial Accounting Report: Acacia Mining Financial Analysis

This report provides a detailed financial analysis of Acacia Mining plc, a gold mining company operating in Tanzania. It examines the company's financial statements, including income statements and balance sheets, to assess its financial performance and stability. The report identifies various user groups of financial statements, such as investors, management, employees, lenders, and government bodies, and explains their respective interests in the company's financial information. It includes calculations and analysis of relevant financial data, and offers insights into Acacia Mining's financial strengths and weaknesses. Furthermore, the report presents income statements and balance sheets for both Acacia Mining plc and 1Spatial plc, enabling a comparative analysis of their financial positions. The report concludes that financial information is crucial for assessing a company's financial health and its ability to meet its financial obligations.

FINANCIAL ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................................................................3
ASSIGNMENT TASK ...............................................................................................................................................................................3
CONCLUSION .........................................................................................................................................................................................17
REFERENCES..........................................................................................................................................................................................18

INTRODUCTION
Financial accounting is related to the specialized branch of accounting in which track of company's financial transactions are
analysed. With the help of standardized guidelines, business transactions of organisation are recorded which are presented in the
financial report such as income statement or balance sheet. The present report is based on Acacia mining plc which is a gold mining
business that is operating in Tanzania with having their exploration properties in Kenya, Burkina Faso and Mali. Company is listed in
London Stock Exchange (About us, 2016). The report gives a detailed idea about different user groups and their purpose of using
financial statements. Other than this, calculations and analysis of relevant financial information of companies has been collected to
find out their financial strengths. Graphs and charts have also been used to show the financial condition of company.
ASSIGNMENT TASK
Different user group of financial statements:
Different people are there who need details regarding financial information of company. They use the data of firm for their
own purpose (Finnerty, 2013). Major group of people who need financial statements of Acacia mining plc are described as follows:
Internal user: Owners and investors: Stockholders of organisation need financial information of company for making decisions of holding,
buying or selling of shares and stocks. Through this, they will be able to find out the returns that they can get from the
organisation (Kiymaz and Baker, 2011). Management: Management of Acacia mining plc includes owners of business and the hired professionals who can entrusted
with the responsibility of operating business (Petty and et. al., 2011). They need information for taking economic decisions of
organisation like the quantity in which raw material should be purchased to run operations.

 Employees: Employees of Acacia mining plc are also interested in identifying profitability and stability of business through
which they can know about the capacity of company of paying salary and employee’s benefits. Other than this, they also need
financial information to know about the expansion possibilities of firm through which they can know about their career
development opportunities (Ismail and Mohsin, 2013).
External users: Lenders: Lenders of Acacia mining plc are banks and other financial institutions through which company can take funds to
expand their business activities. This financial information is needed for them to find out the ability to repay its liabilities
(Gudov, 2013). Trade creditors or suppliers: Same as lenders, trade creditors and suppliers are also the people who are interested in capacity
of Acacia mining plc to repay the liabilities. They are mainly interested in liquidity of company to pay the short term
obligations. Government: Governing bodies are also there in which mainly tax authorities are interested in the financial information of
Acacia mining plc for the purpose of taxation and regulatory issues. Calculations of tax are based on the financial information
of organisation (Hale and Long, 20111). General public: The outside people of company such as researchers, students, analysts and others are interested in financial
information of Acacia mining plc for some valid reason. They need information for the research purpose.
Income statement and balance sheet of Acacia mining and 1Spatial plc:
Income statement is a financial report that helps to find the present economic condition of organisation. It gives a detailed idea
about financial performance of company (Akortsu and Abor, 2011). Income statement of Acacia Mining will help to know about the

revenues and expenses of organization which is helpful in finding relevant information of firm. The below stated income statements of
Acacia Mining explains their financial condition which are like:
Income statement and balance sheet of Acacia Mining:
Income statement of Acacia Mining will help to know about the income and expenditure of company. Through these
reports, it will be easy to know about the liquidity position of organisation (Financial information of Acacia Mining plc, 2016).
(in thousands of United States dollars, except per share amounts) Notes
For the
year ended
31 December
2014
For the
year ended
31 December
2013
Continuing operations
Revenue 5 930,248 929,004
Cost of sales 6 (688,278) (713,806)
Gross profit 241,970 215,198
Corporate administration (32,685) (32,157)
Share-based payments (8,388) 1,813
Exploration and evaluation costs 9 (18,284) (16,927)
Corporate social responsibility expenses (10,787) (12,237)
Impairment charges 7 - (1,044,310)
Other charges 10 (47,921) (30,424)
Profit / (loss) before net finance expense and taxation 123,905 (920,857)
Finance income 12 1,324 1,670
Finance expense 12 (10,043) (9,552)
(8,719) (7,882)
Profit / (loss) before taxation 115,186 (928,739)
Tax (expense) / credit 13 (25,977) 187,959
Net profit / (loss) from continuing operations 89,209 (740,780)

(in thousands of United States dollars, except per share amounts) Notes
For the
year ended
31 December
2014
For the
year ended
31 December
2013
Discontinued operations
Net profit / (loss) from discontinued operations 3 726 (57,653)
Net profit / (loss) for the year 89,935 (798,433)
Net profit / (loss) attributable to:
Owners of the parent (net earnings / loss)
–– Continuing operations 89,209 (740,780)
–– Discontinued operations 1,193 (40,321)
Non-controlling interests
–– Discontinued operations (467) (17,332)
Earnings / (loss) per share:
– Basic and diluted earnings / (loss) per share (cents) from continuing operations 14 21.8 (180.6)
– Basic and diluted earnings / (loss) per share (cents) from discontinued operations 14 0.3 (9.8)

thousands of United States dollars) Notes
As at
31 December
2014
As at
31 December
2013
Assets
Non-current assets
Goodwill and intangible assets 21 211,190 211,190
Property, plant and equipment 20 1,425,315 1,280,671
Deferred tax assets 22 50,852 50,787
Non-current portion of inventory 17 90,006 72,689
Derivative financial instruments 31 1,806 3,253
Other assets 23 133,020 137,191
1,912,189 1,755,781
Current assets
Inventories 17 265,526 253,676
Trade and other receivables 18 34,989 24,210
Derivative financial instruments 31 1,040 1,366
Other current assets 18 75,822 113,945
Cash and cash equivalents 19 293,850 282,409
671,227 675,606
Assets of disposal group classified as held for sale - 596
Total assets 2,583,416 2,431,983
Equity and liabilities
Share capital and share premium 24 929,199 929,199
Other reserves 1,068,168 992,915
Total owners’’ equity 1,997,367 1,922,114
Non-controlling interests 4,781 5,248
Total equity 2,002,148 1,927,362

thousands of United States dollars) Notes
As at
31 December
2014
As at
31 December
2013
Non-current liabilities
Borrowings 27 127,800 142,000
Deferred tax liabilities 22 61,904 35,862
Derivative financial instruments 31 4,079 1,207
Provisions 28 155,601 132,237
Other non-current liabilities 29 17,365 10,101
366,749 321,407
Current liabilities
Trade and other payables 26 174,254 147,896
Borrowings 27 14,200 -
Derivative financial instruments 31 13,729 5,074
Provisions 28 4,617 1,028
Other current liabilities 29 7,719 12,456
214,519 166,454
Liabilities of disposal group classified as held for sale - 16,760
Total liabilities 581,268 504,621
Total equity and liabilities 2,583,416 2431983
Income statements and balance sheet of 1Spatial plc:
Income Statement: 31/01/2016 31/01/2015 31/01/2014 31/01/2013 31/01/2012
£ (Millions) £ (Millions) £ (Millions) £ (Millions) £ (Millions)
Revenue: 20.74 19.60 17.27 12.10 5.23
Operating Profit / (Loss): (0.34) (1.47) (2.23) (4.79) (1.60)

Net Interest: (0.03) (0.06) (0.03) 0.01 0.01
Profit Before Tax: (0.79) (1.52) (2.25) (4.78) (1.59)
Profit after tax from continuing operations: 0.01 (1.52) (2.24) (4.39) (1.42)
Discontinued Operations:
Profit after tax from discontinuing operations: n/a n/a n/a n/a 0.41
Profit for the period: 0.01 (1.52) (2.24) (4.39) (1.01)
Attributable to:
Equity holders of parent company: 0.01 (1.52) (2.23) (4.39) (1.01)
Minority Interests / Other Equity: n/a n/a (0.02) n/a n/a
Total Dividend Paid: c n/a c n/a c n/a c n/a c n/a
Retained Profit / (Loss) for the Financial Year: c n/a c n/a c n/a c n/a c n/a
Earnings per Share:
Basic: n/a -0.23p -0.41p -1.25p -0.57p
Diluted: n/a -0.23p -0.41p -1.25p -0.57p
Adjusted: n/a -0.23p -0.41p -0.08p -0.15p
Dividend per Share: 0.00p 0.00p 0.00p 0.00p 0.00p

Balance Sheet: 31/01/2016 31/01/2015 31/01/2014 31/01/2013 31/01/2012
£ (Millions) £ (Millions) £ (Millions) £ (Millions) £ (Millions)
Assets:
Non-Current Assets:
Property, Plant & Equipment: 1.64 0.55 1.71 0.27 0.24
Intangible Assets: 18.86 14.73 14.02 6.93 9.73
Investment Properties: n/a n/a n/a n/a n/a
Investments: 1.58 0.50 n/a n/a n/a
Other Financial Assets: (0.01) n/a n/a n/a n/a
Other Non-Current Assets: n/a n/a n/a n/a n/a
22.07 15.78 15.73 7.19 9.98
Current Assets:
Inventories: n/a n/a 0.01 0.01 0.04
Trade and Other Receivables: 11.21 7.59 6.90 2.89 5.61
Cash at Bank & In Hand: 5.00 8.25 11.16 3.22 2.73
Current Asset Investments: n/a n/a n/a n/a n/a
Other Current Assets: n/a 0.99 n/a n/a n/a

16.21 16.83 18.08 6.12 8.39
Other Assets: n/a n/a n/a n/a n/a
Total Assets: 38.28 32.61 33.81 13.31 18.36
Liabilities:
Current Liabilities:
Borrowings: n/a 0.24 0.05 0.05 0.05
Other Current Liabilities: 11.03 9.47 9.61 5.69 6.11
11.03 9.71 9.66 5.74 6.16
Net Current Assets: c n/a c n/a c n/a c n/a c n/a
Non-Current Liabilities:
Borrowings: n/a 0.19 0.27 n/a 0.05
Provisions: 1.12 1.70 1.76 0.75 1.03
Other Non-Current Liabilities: 0.46 n/a n/a n/a n/a
1.58 1.89 2.03 0.75 1.09
Other Liabilities: n/a n/a n/a n/a n/a
Total Liabilities: 12.61 11.60 11.70 6.49 7.25
Net Assets: 25.67 21.01 22.12 6.82 11.12
Capital & reserves:

Share Capital: 16.22 15.57 15.57 12.57 12.56
Share Premium Account: 22.26 20.61 20.61 6.50 6.46
Other Reserves: 5.71 3.43 3.02 2.40 2.36
Retained Earnings: (18.53) (18.60) (17.08) (14.65) (10.26)
Shareholders’ Funds: 25.67 21.01 22.12 6.82 11.12
Minority Interests / Other Equity: n/a n/a n/a n/a n/a
Total Equity: 25.67 21.01 22.12 6.82 11.12
Balance sheet is the assets, liabilities and capital of a business at a fixed period of time. This helps in assessing the assets and
liabilities of company through which it is possible to know the financial strengths of firm.
Above statement shows the financial condition of 1Spatial plc and Acacia Mining plc. Through this, it will be easy to know
about the financial stability of organisation in market. More than this, it will also be easy to know about the capacity of company in
repaying their liabilities which they have taken from financial institutions for the growth and expansion of firm.
Analysis and calculations for finding financial information of company:
Calculations of financial information of the firm will help to find out the financial stability of business in market as well as the
capacity of firm in repaying their liabilities.
Below described is the financial information of Acacia Mining plc.