Advanced Management Accounting: Coca-Cola HBC Financial Presentation

This presentation analyzes the purpose and presentation of financial information, using Coca-Cola HBC as a case study. It examines the company's financial statements, including the balance sheet, profit and loss account, and cash flow statement, and explains how these statements support financial planning and decision-making. The presentation highlights the needs of different stakeholders, such as company managers, shareholders, and investors, and how they utilize financial information to assess performance, make investment decisions, and manage the business effectively. The presentation concludes by emphasizing the importance of accurate, up-to-date financial reporting that adheres to relevant regulations and meets the diverse needs of stakeholders to facilitate informed decision-making. The document also addresses the application of accounting techniques to support organizational performance, including cost analysis, cost allocation, and the analysis of actual and standard costs to control variances. It also reviews how the changing business environment impacts management accounting.

Developing and presenting
financial information
COCA COLA HBC

Introduction
 This presentation include an analysis of the purpose and
presentation of financial information in relation to different
stakeholders.
 The need for developing the financial statements in support of
financial planning and decision making.

Overview of the Company
 Coca – Cola HBC also known as Coca – cola Hellenic Bottling
Company.
 This is world’s 3rd largest Coca – cola anchor bottler.
 The head office of the company is in Zug, Switzerland.
 This company is a constituent of the FTSE 100 Index of London
Stock Exchange.
 The company operates under the beverage sector
 And present is more than 28 countries.

Developing Financial Statement
Organisations generally produce 3 key financial statements:
 Balance Sheet
 Profit and Loss Account
 Cash Flow Statement

Balance Sheet
 The purpose of the balance sheet is to present the organisation’s
asset.
 The balance sheet consists two parts. The top part consider the
assets of the firm and other part consider the liability of the firm.
 This statement provides solvency information of the organisation.
 This statement provides the basic understanding of the company’s
operation to the investors.

Profit and Loss Account
 The profit and loss account consist of two parts.
 One part consider all the income while another consider all the
expenses incurred to regenerate the such income.
 This provides the amount of net profit before tax.
 This consider both direct as well as indirect cost to calculate the
gross and net profit of the firm.

Cash Flow Statement
 The purpose of the cash flow statement is to report the company’s
profit and cash.
 This also provides the details that from where the money is
generated and where is used.
 The cash flow includes certain information, which profit and loss
account does not includes.
 This is not compulsory to send the cash flow statement to the
Companies house, hence investors need to request it.

Purpose of financial information
 The financial information is used by the range of stakeholders.
There for the information must be accurate but also as per the
regulations.
 The different stakeholders have different needs from the
organisation’s financial information
 The main stakeholder’s are:
 Company Managers
 Shareholders
 Investors

Company managers
 The manager need the financial information to analyse the financial
performance of the company
 To manage the efficiency of the business.
 To make future decision.
 To make the further plans.

Shareholders
 The shareholders of the company need the financial information of
the company to assess the performance effectiveness of
management.
 To ascertain the amount of the dividend.
 To make the investment decisions.
 To know the profitability and the liquidity of the company.

Investors
 The investors of the company need the financial information to
determine the liquidity of the company.
 Investors like banks and financial institution need the financial
information to analyse whether the company is capable to repay the
loan or not.
 To analyse the profitability of the company.
 To make the investment related decision.

Conclusion
The presentation concludes:
 That the company need to report their financial information in form
of the financial statements.
 That the financial statement must be accurate, true and up to date.
 That financial report must satisfies the requirements of the
Companies Act.
 That the need of the financial information differs from stakeholder
to stakeholder.
 That thee stakeholders need the financial information to make
various decisions.