Accounting

Topics: Balance sheet, Generally Accepted Accounting Principles, Financial statements Pages: 8 (2569 words) Published: May 7, 2013
To: Carminho Building Products Ltd

From: Rodrigues Accounting

Dear Sir/Madam,
We are submitting herewith our report entitled UK Subsidiary Expansion. The main purpose of this report is to help Carminho Building Products Ltd decide the potential and suitable site for the formation of a public listed subsidiary. This report will include United Kingdom’s current financial reporting environment and other information that Carminho Building Products Ltd would need in order to make a sound decision with regards to its expansion. We hope that this report will merit your approval.

Respectfully yours,
Rafaa Hamami

Executive summary

The executive summary offers the reader with an overview of the report’s critical information. It is intended to be read by people who will not have time to read the entire report or are deciding if this is necessary. The executive summary should concisely outline the topic substance, the background problem, the method of inquiry, the important findings opinions and important issues elevated in the discussion, the conclusion and endorsements. It is also should not just be a summary of the points to be covered in the report with no detail of the analysis that has taken place or assumptions that have been reached. The executive summary stands as an indication at the front of the report but it is moreover intended to be read alone without the additional report, therefore, you need to make sure it is independent and can be understood. < http://unilearning.uow.edu.au/report/4bi.html >

Table of Contents:

Detail| Page number|
Introduction| 3|
FindingsCurrent financial reporting in UKCultural influencesPolitical processesFinancial reporting analyses (Table 1)| 3345| Conclusion and recommendationTable 2 | 67| References| 8|

Introduction

The aim of this report is to investigate aspects which Carminho Building Products Ltd (CBP Ltd) should keep in mind when considering its expansion. This report will enlighten the procedures of financial reporting in the United Kingdom and what cultural influences and political processes affect those procedures. Depending on the financial reports of the chosen publically listed company in United Kingdom, operating in a similar environment to CBP Ltd, a proposition will be made whether CBL Ltd should undergo expansion in United Kingdom or not. The chosen company for this expansion is Lupus Capital PLC.

As mentioned above the chosen company in United Kingdom which operates in similar environment to CBP Ltd is Lupus Capital PLC. Lupus Capital PLC is a leading international supplier of building products to the door and window industry.

Findings

Due to the aim of expanding in United Kingdom, it is very important to consider the financial reporting in that location. As Summary of ACCA Member Surveys (2011) stated the financial reporting for a publically listed company in UK is in accordance with the International Financial Reporting Standards (IFRS). IFRS is the basis for publically listed company’s consolidated accounts. IFRS is a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. As Deloitte website <http://www.iasplus.com/en/jurisdictions/europe/country55> describes the European Union (EU) adopted an IAS Regulation requiring European companies (including United Kingdom publically listed companies) listed in an EU securities market, including banks and insurance companies, to prepare their consolidated financial statements in accordance with IFRS starting with financial statements for financial year 2005 onwards.

There are many different factors that could affect financial reporting in a country. One of these factors includes cultural influences. Towards an Understanding of Cultural Influence on the International Practice of...

References: * Summary of ACCA Member Surveys 2011, ACCA, United Kingdom viewed 14 April 2013, <http://www.accaglobal.com/content/dam/acca/global/PDF-technical/financial-reporting/tech-tp-fofr3.pdf>.
* Greenwood, M.and De Cieri, H 2005, STAKEHOLDER THEORY AND ETHICS OF HUMAN RESOURCE MANAGEMENT, Monash University Business and Economics, Melbourne, viewed 14 April 2013, < http://www.buseco.monash.edu.au/mgt/research/working-papers/2005/wp47-05.pdf>.
* Deegan, C 2009, Financial Accounting Theory, McGraw- Hill Australia Pty Limited, Australia.
* Gaffikin, M 2005, Regulation as Accounting Theory, School of Accounting and Finance, Australia, viewed 14 April 2013, < http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1049&context=accfinwp>.
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