Financial accounting and reporting

Topics: Balance sheet, Financial ratios, Generally Accepted Accounting Principles, Financial ratio, Financial statements / Pages: 39 (4100 words) / Published: Dec 4th, 2014
Contents
Task 1 1
Q: 1.1 1
Types of Stakeholders 1
Internal Stakeholder 1
External Stakeholders 2
1.2) 2
1.3) 2
1.4) (a) 3
1.4) (b) 3
1.4) (c) 3
Task 2 5
Q2.1 5
Q2.2 6
Q2.3 7
Q2.4 8
Task 3 8
Q 3.1) 8
3.2) 9
3.3) 9
3.4 (a) 10
Income Statement 10
Statement of Division of Profit 11
3.4 (b) 11
Task 4 11
4. A 11
Profitability Ratios 12
Liquidity Ratios 12
Solvency Ratio 13
Asset Management Ratio 13
Assessment of Market Value 14
4. B 14
Comparison of Liquidity Ratio 14
Asset Management Ratio 15
Profitability Ratios 15
Solvency Ratio 16
Decision of Selection 16

Task 1
Q: 1.1
A single person or group of person who are concerned with the day to day operations and performance of a company are termed as stakeholders of that company. A list of possible stakeholders of a company may include employees, company management, company suppliers, stockholders, customers, distributers and local society. All the above discussed stakeholders look for different kind of information in the annual books of the company. The internal management of the company try their level best to boost the revenues and profitability of the organization, company suppliers generally look for the level of liquidity in the company ranks, shareholders look for dividend paying policies of the organization and its future growth plans and investors search for the debt in company’s balance sheet and its ability to pay the debt. We can reach a consensus statement that all the participants of the company have different motives and they look for their own particular type of information to fulfill their respective desires (Jackson, 2008).
Stakeholders Types
Generally a company or organization has two basic types of stakeholders’ i.e. internal stakeholder and external stakeholder.
Internal Stakeholder
The internal stakeholders of a company are all those individuals who have some kind of benefit attached to that company and are present inside that company for example.
1. Stockholders
2. Employees
3.



References: Epstein, M. (2010). Advances in Management Accounting. Emerald Group Publishing. gross profit margin ratio. (n.d.). Retrieved May 02, 2014, from investopedia: http://www.investopedia.com/terms/g/gross_profit_margin.asp Heath, J IFRS and US GAAP: similarities and differences. (n.d.). Retrieved April 12, 2014, from PW: http://www.pwc.com/us/en/issues/ifrs-reporting/publications/ifrs-and-us-gaap-similarities-and-differences.jhtml Jackson, S LIQUIDITY RATIOS. (n.d.). Retrieved April 12, 2014, from .midcapcpas: http://www.midcapcpas.com/liquidity_ratio.htm Peavler, R Post, J. E. (2002). Redefining the Corporation: Stakeholder Management and Organizational Wealth. Stanford University Press. Stickney, C. (2009). Financial Accounting: An Introduction to Concepts, Methods and Uses. Cengage Learning. UK regulatory bodies. (n.d.). Retrieved May 2, 2014, from icaew: http://www.icaew.com/en/library/subject-gateways/accounting-standards/knowledge-guide-to-uk-accounting-standards Appendices

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