Corporate Reporting Essay example -- essays research papers fc

ToElizabeth Bruce Line ManagerFromCharvin Ebanja Accountant Date 7 November 2002SubjectIntroduction and discussion of Directors (Pentium plc) concerns about the use of published financial statements for evaluating the achiever of a beau monde. You should discuss the purpose of financial statements for various stakeholders. You should also discuss the impact the different accounting policies have on the final published figures.The company we have chosen to focus on is the Selfridges Group plc. In this report we will port at the published financial statements to analyse their financial cognitive operation and piping. We will also focus on the objectives, limitations and users of financial statements. As well as the how the various accounting policies impact on these statements. Before discussing directors concerns we must look at the objectives of the financial statements. The ASB states in their statement of principles, that the objective of financial statements To provide i nformation about the reporting entitys financial performance and financial position that is profitable to a wide range of users for assessing the stewardship of management and for making economic decisions. It can usually be presumed that this objective can be met by foc victimisation exclusively on the information needs of the defining class of user, investors. Investors need information about the reporting entitys financial position and performance that is useful to them in evaluating the entitys ability to generate cash ( including the timing and the certainty of its generation) and assessing the entitys financial adaptability pecuniary information regarding the operations of and resources controlled by an entity will be of interest to a wide range of stakeholders (user groups). Although, various stakeholders will be able to obtain bespoke financial information to suit their particular requirements the grand majority will have to rely on the published financial statements. Al though the various user groups will have different requirements it does not follow that financial statements are not designed to meet the specific needs of all interested parties. The Statement of Principles identifies seven user groups. These being, investors, customers, employees, lenders and other creditors, suppliers, gov... ...r accounts the exchange rate had increase to 3 = 1. Euroself decided to sell their asset for 96000. With the return they repaid their loan, and returned Selfridges initial investment of 24000 at an exchange rate of 3 = 1.This can be calculated using both methodsTemporal Closing Rate000 000Non-Monetary Asset Exchange Rate (2=1) 48(3=1) 32Share Capital 24 8Loan (3=1) 24 2448 32Exchange gain/(loss) 12 (4)Under the temporal method Selfridges will receive 8000 defend of their original investment and will show a loss 16000. While under the Closing rate method the company receive nothing spinal column and Euroself would still be 4000 behind in the deal.Again we see how the different methods demonstrate how a different outcomes can be depending on the method of calculation.BibliographyFinancial Reporting 6th Edition, Alexander & BrittonACCA Study Text, Advanced Corporate Reporting BPP PublishingACCA Accounting Handbook 1999/2000GAAP Handbook 1999/2000The Magic Circle account statement JuneGood Report For Governance Accountancy December 2001