Accounting for Business: Financial Report Analysis of RB Group

This report critically examines financial reports and their impact on businesses, using Reckitt Benckiser Group plc as a case study. It begins with an introduction to the importance of financial reporting in business, followed by an overview of Reckitt Benckiser, its stock exchange listing, and the various types of financial information. The report then delves into how different non-management users, including owners/investors, lenders, the government, employees, and customers, utilize this financial information for decision-making. It highlights the benefits of financial reports for stakeholders and concludes with a summary of the key findings, emphasizing the importance of accurate financial reporting and its impact on various stakeholders. The report also provides references to relevant books and journals.

Accounting for
Business

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Overview of the company:...................................................................................................3
Stock exchange:....................................................................................................................3
Financial Information and how its used by different non-management users:..............4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
In business, it is essential to be aware of recording of transactions and which can be done
through preparation of financial reports. These reports help in providing a clear image about the
operations and the position if the business compared to that of other businesses in the respective
industry. Main benefit of this financial report is that they help businesses to maintain and manage
all the financial activities. Main aim of this report is to critically understand the financial reports
and its impact on business. For this article Reckitt Benckiser Group plc has been taken as an
example, this case study will help in understanding the use of financial information for its
various users.
TASK
Overview of the company:
Reckitt Benckiser Group plc is a British multinational organisation which focuses on
distribution of consumer goods. It is headquartered in Slough, England. Reckitt Benckiser
produces products related to health, hygiene and home. The company was established in March
1999 by the merger of British company Reckitt & Colman plc and Dutch company Benckiser
N.V.
Reckitt Benckiser's products include the disinfectant brand Dettol, the anodyne Disprin,
the sore throat medicine Strepsils, the hair removal brand Veet, Airborne dietary supplements,
Gaviscon for ideigestion remedy, baby food brand Mead Johnson, the air fresher Air Wick, Cillit
Bang, Enfamil, Nutramigen, Durex, Calgon, Clearasil, Lysol, Mycil and Vanish (Najjary,
Jahanshad and Haydarpor, 2020).
Stock exchange:
It is defined as a place or a distribution channel from where stocks are traded, soled and
purchased. Main aim of stock exchange is to assist firm to raise capital from investors who have
it. There are various types of stock exchange such as New York Stock Exchange, CBOE, Nasdaq
etc. The working procedure of stock exchange is quite simple as they list shares on stock and
exchange them through a process known as initial public offering.
Link between different non-management external users:

Reckitt Benckiser is listed in London Stock Exchange as RB. The company has a share
volume of 775,867 as on 04th February 2021, each share priced at 6,258 GBP (3rd February
2021).
Financial Information and how its used by different non-management users:
Financial Information is used by: the management, the government, owners and
investors, lenders, suppliers, employees, customers and the general public.
1. Owners and Investors: These financial records assist the stockholders and the
owners of the equity capital of the company in making decisions related to their
investment (Safkaur and et. Al, 2021). This makes them evaluate the return on
their investment and helps to take decision like: to buy or sell or hold the shares of
the company or any other financial instruments of the company. Financial
credentials assist prospective investors to assess entity's potential and capabilities
to be successful and profitable. RB group provides its investors and shareholders
with financial information which helps them to make such decisions. In the same
way, small business owners need these financial records to evaluate the
profitability of the business, and whether he should continue it, drop it or make
some improvements or changes.
2. Lenders and Financiers: This financial information is used by Lenders or
Financiers of financial institutions, like banks, use to assess the ability of the
company to pay its liabilities upon maturity. Financial institutions determine the
solvency of the company, analyse it and then take the decision of lending finance
to the company, if the company does not qualify; finance won't be given to the
company (Biggerstaff and et. al, 2019). RB's financiers use financial information
of the company to evaluate its solvency and its capacity to pay its liabilities.
Although the company has a low debt equity ratio, that means the company have
a strong financial position with low debt to pay as liabilities and also the company
has high solvency ratio.
3. Government: The credential and data delivered by firm is used by government in
secured way. The bodies of government uses these information such as tax
authority, regulatory proposes etc. So, supervisors and bodies of government are
interested in knowing and examining of how much a firm earns and how they

generates sources from market or other gate ways. In context of RB Group PLC,
finance department of firm make assure that all legal rules and regulations are
properly accepted as well as followed. Through this, it assist entity in keeping all
the proof and avoiding of risks.
4. Employees: Personnel of a firm are also important and they focuses in
determining of a enterprise capability of earning profit as because they are relying
on organisation salary and perks or growth. It is duty of firm to make assure that
information is passed in safe as well as secure manner. In viewpoint of chosen
firm, they deliver financial credentials to they subordinates which makes
employees safe and to complete their task in proper manner.
5. Customers and general public: Customers and public is important to the
business as they are people who purchase the product of a firm. So, customers
who are part of entity from long time takes interest in determining of a enterprise
new products strategies, offers, discounts etc. So, these needs are required to be
fulfilled at all aspects.
Opinions and reflection
From above report, it is examined that financial reports are beneficial for firm which are
needed to be prepared in correct way. According to my opinion, RBI PLC needs to focus on their
development of financial department so that best practices are used. This is becoming essential to
implement financial reports so that correct type of financial reports is implemented within
enterprise. For example, a retail businessman who buys and sell the products of manufacturing
company, is dependent upon the manufacturing company for his business as the company
provides him with the products to sell further and do business. RB has a vast consumer base, it
has operations in around 60 countries with a consumer base of nearly 200 countries these
consumers are of various types; some of them are dealers, wholesalers, retailers, general public
etc., they want the company to continue working and be stable so that the can use its products.

CONCLUSION
From the above discussion it is concluded that financial reports of any organisation is of keen
importance for their stakeholders. In this report the basic introduction about financial
information is presented and the users of it also enjoy several benefits of the data as it helps them
in various aspects and decision making. As well as a brief relation between financial information
and the non-management users of this information in reference to Reckitt Benckiser Group plc.

REFERENCES
Books and Journals
Najjary, H., Jahanshad, A. and Haydarpor, F., 2020. The Role Of Business Intelligence On the
Constraints Of User Financial Information. Strategic Management Thought.
Safkaur, O. and et. Al, 2021. The Role of Accounting Information System Afflication In
Reliability Financial Reporting. Ilomata International Journal of Tax and Accounting.
2(1). pp.97-112.
Biggerstaff, L. E. and et. al, 2019. CFO Effort and Public Firms’ Financial Information
Environment. Contemporary Accounting Research.
Belesis, N., Sorros, J. and Karagiorgos, A., 2020. Financial Market Data Versus Accounting
Data: Which Better Explains Stock Returns?. International Advances in Economic
Research, pp.1-14.