Cookridge Carpets

Topics: International Financial Reporting Standards, International Accounting Standards Board, Accounts receivable Pages: 6 (1826 words) Published: April 10, 2012
4. Introduction to the organisation

4.1 Cookridge Carpets LTD is a large carpet, soft furnishings and bed dealership in Southampton. It is a limited company and has been trading since 2007. It was set up by two brothers: Peter Cookridge and John Cookridge.

4.2 The business has grown steadily since it has been established in 2007. In February 2010 Cookridge Carpets was asked by Memo Beds to become the main dealership for Southampton.

4.3 The business employs 20 members of staff: 9 direct sales staff, 3 internet sales staff, 2 cleaners, 2 delivery drivers, 1 accessories salesperson, and 3 part-time staff in the small accounts department. See appendix 1 for the organisational chart.

4.4 The company has a flat structure, which means that every member of staff can communicate with the owner directly. However, a all structure of an organization is more hierarchical, with more levels of authority, while a flat structure has very few different levels, but more people in each level.

4.5 The accounts department is situated on the first floor on the show room. Access to the office is by a set of stairs at the rear of the building with toilet facilities for staff and customers. The carpet showroom is open to the public seven days per week, whilst the accounts department is open Monday to Friday.

4.6 Up to 6 months ago Payroll was managed by Southampton Accountants Services the Company` s accountants. It became too demanding for Paula, the company secretary who left the firm to have her first baby. Since the hours worked each week and commissions earned were variable, the payroll was different every week. This became costly as the accountants charged for the time worked. Payroll was moved in-house, done internally by the wages clerk who starting working for the company 4 months ago.

4.7 The accounts system is a decentralised system based on four computers for every member of the accounts team. They are run under the standalone basis and all of them are linked to the same printer. Inventory, bed information, carpets, and soft furnishings are maintained and stored on excel spreadsheets. Some computers use Windows Vista and are loaded with Microsoft Office 2007. Another computer was loaded with Sage Payroll so as to be run in-house.

4.8 Computer system is password protected “Paula C” which has never been changed.

4.9 External Regulations affecting the organisation:

4.9.1 The Company` s Act 2006- This sets out the way in which financial statements should be prepared. The Act provides a comprehensive code of company law for the United Kingdom , and made changes to almost every facet of the law in relation to companies. the Act codifies certain existing common law principles, and it implements the European Union` s Takeover and Transparency Obligations Directives.

4.9.2 Accounting Standards are guidelines for financial accounting, such as how a firm prepares and presents its business income and expense, assets and liabilities. They further define the policies and approaches to the preparation of the accounting statements that the organisation must take. They are either known as Statements of Standard Accounting Practices (SSAPs) or Financial Reporting Standards (FRSs) depending on when they were issued.

4.9.3 An older set of standards stating how particular types of transactions and other events should be reflected in financial statements. In the past, international accounting standards (IAS) were issued by the Board of the International Accounting Standards Committee (IASC). Since 2001, the new set of standards has been knows as the International Financial Reporting Standards (IFRSs), and has been issued by the International Accounting Standard Board (IASB).

4.9.4 The Data Protection Act 1998 came into force early in 1999 and covers how information about living identifiable persons is used. It is much broader in scope than the earlier 1984 act, but does contain some provision for a transitional period...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about sheridan carpet
  • Essay about Carpet Weavers Morrocco A poem written by Carol Rumens Written by Marium Saud Japanwala
  • Global Database of the Top Carpet and Rug Mills
  • Cardon Carpet Mills Essay
  • Hand Woven Carpets: Major Market Facts Essay
  • Tabriz and Carpet Essay
  • Carpet Essay
  • Afghan Carpet Essay

Become a StudyMode Member

Sign Up - It's Free