Financial Reporting Master Research Paper Example | Topics and Well Written Essays - 4250 words

Financial Reporting Master - question Paper ExampleThe observance of accounting standards in reporting is mandatory in all countries as per the direction of Accounting Standard Board (ASB). All countries have developed their own accounting standards and in the absence of a standard in any occasion, Generally Accepted Accounting Standards (GAAP) can be followed. This report has four sections, namely A, B, C, and D. dent A deals with the specific accounting policies adopted by Tesco, Sainsbury and Morrison, followed by the comparison of the same between one another. It also throws light on whether there are any differences in the accounting policies followed by these companies and if any, what are they. Section B is meant to present the fiscal analysis of all the collar companies financial statements for a 5 year period using profitability ratios, liquidity ratios, debt ratios, activity ratios, gearing. Section C is for detailing the major limitations of ratio analysis in the light of given companies. Section D provides a report on the performance of a company of Morrison Plc. Based on the ratios calculated in Section B.The company prepares and presents it financial statements comprising of income statement, balance sheet and cash flow statement in concurrence with applicable accounting standards, under the historical cost convention, and are in accordance with the Companies Act 1985 (Accounting... base of ConsolidationThe company prepares its consolidated financial statements comprising of statements of parent company and that of its subsidiaries. It has been made mandatory for the Continental European companies to prepare financial statements prior to the preparation of the same of the group so as to ensure timely preparation and reporting. As regards the excess/deficiency of purchase consideration is concerned, it shall be adjusted in reserves. It is therefrom necessary for all subsidiaries to adhere to the accounting policies of the group with the aim of attaining consistency in the accounting policies. StocksStocks in stores are calculated at retail prices and reduced by appropriate margins to the lower of cost and realise realizable value. Money market investmentsMoney market investments are shown at cost price. All income certain from these investments is included in the profit and loss account. Fixed assets and depreciationDepreciation is provided on an equal yearly installment basis over the anticipated useful working lives of the assets, after they have been brought into use, at the pursuance ratesLeasingitems such as plant, equipment and fixtures and fittings are shown in the financial statements as tangible assets. These assets are adequate to(p) to depreciation as per the depreciation policy of the firm. Sainsbury Plc.International Financial Reporting Standards (IFRS)Sainsbury will follow IFRS for financial reporting though it will have a small adverse impact on describe profit after tax. This impact excludes the e ffect of IAS 32 and IAS 39 - the Group has elected to take a one-year exemption in implementing these standards as allowed under IFRS. Morrison Plc.Basis of