FACULTY OF ECONOMICS AND MANAGEMENT SESSION: 2013/2014 SUBJECT: INTERMEDIATE FINANCIAL ACCOUNT (ACT 3121) LECTURER: DR. ZAIDAH BINTI TURMIN GROUP MEMBERS: 1) MOHD DANIAL ZULFARIS BIN MOHD YAZID (173567) 2) MUHAMMAD HAIKAL HAFIZ BIN MOHD RAZALI (175555) 3) MOHAMMAD LUQMAN NUL-HAKIM BIN CHE MANSOR (175862) 1.0 Annual Report The annual report is a report of the company's activities during the previous years. Generally, items that will be included in annual reports are general corporate information, accounting policies, balance sheet or statement financial position, cash flow statement, profit and loss account and many more. Objectives of Annual Report: 1. To inform the interested people about the company's performance The company can use the annual report to inform the interested people as shareholders, investors, corporate bankers and many more about their performances. 2. To promote the company's image to the public The company can use the annual report to promote their public image and allow the public to know more about them. This will help the company to grow their popularity and will be well-known. 3. To provide the company's financial information The company uses the annual report to provide the financial information of the company. Annual reports include financial statements such as statement of comprehensive income, statement of financial position and cash flow statement. 4. To highlight the company's achievements The company uses the annual report to highlight the company's achievements and performances. The company can show their achievements to the public and their previous success. 1.1 Function of Annual Report There are many functions of annual report: 1. The... ... middle of paper ... ...d at the same to produce much more product from the company. In addition, the managers of the company need to make sure the financial reports should make comparisons with budget forecasts and the statement of changes in financial position. Furthermore, to reduce the of the products, the company need to look for what are spending money and the managers decide it can reduce without effect to retails. But for increase the price, the company need to look at what are the competitors charging if they mark up the price. Next, in order ways for improve net profit margin, the company need reduce the costs that involved in creating the revenue. Finally, the most important here, The Store Corporation Berhad need to is avoid from extend the credits to slow payers of the loan, decrease the credits terms and offers to the customers about discounts just only for earlier payers.
The objective of financial reporting/statements is to provide information about the reporting entity’s financial performance and financial position that is useful to a wide range of users for assessing the stewardship of the entity’s management and for making economic decisions.
The Securities and Exchange Commission requires that publicly owned businesses provide annual reports, which are available to the public. Many different people use annual reports, to make informed business decisions. Management from the company uses the information to determine a number of items. Some of these items are the profitability of the company, the inventory turnover rate, and the accounts receivables rate. Creditors use the annual report to determine how well a company can satisfy its current liabilities, as well as, how the company is doing in the aspect of long tem survival. Another group of people who use the annual reports furnished by companies are the investors, who can purchase shares of stock from the publicly company. Annual reports are very important to these people, because they are an over all picture to help them determine the over all stability and reliability of the company’s financial outlook. These annual reports are important because they do not only contain the financial statements of the company, but there is a management ‘s note to discuss reasons for any unexpected numbers, and an auditor’s report, from an independent accounting firm, who either agrees or disagrees with the financial numbers. Market reporter Matt Krant said, “Ignoring these reports is akin to driving down the freeway blindfolded.”
The annual report or 10-K of a company is a useful source of information for many agents outside of the corporation. Shareholder’s can view the contents of an annual report to get a more comprehensive idea of what the company is built upon. Additionally, annual reports show a company’s progress over the past financial periods and give a detailed breakdown of company investing and operations. The 10-K and all related documents are easily accessible on a company’s website for the public to view. i
The annual report of the company shows status of the company’s business. Through the annual report of the company, creditors, investors, and everyone else can see the financial health of the business for the company. Fords and General Motors are two competitors in auto mobile industry area, and these two companies are most famous automobile companies that United States manufacturing businesses. Since these two companies are in same industry area, the investors compare these two companies which company is more worthy to invest their money. Annual report is financial certification that how a company was financially. Liquidity, solvency, and profitability are three way to compare these two companies financially.
Financial statements are those statements which provide information about profitability and financial position of a business. It includes two statements, i.e., profit & loss a/c or income statement and bal...
Data on the income statement includes quarterly (one-year) time range and discloses the costs and revenues of the company, net income and deductions from it in the reserves, the payment of dividends and so on. From these data it is possible to obtain information about the value and dynamics of the value of output, its cost and the financial condition of the company and for the previous reporting
out to stockholders. Within this section of the annual report there is also a company stock performance graph. This shows a
Due to the use of the company’s annual report for users to make decisions, ensuring that the financial reports convince the objective of general purpose financial reporting and qualitative characteristics of useful financial information as outlined in the IASB September 2010 ‘Conceptual Framework for Financial Reporting’ (CF) have become extremely important. Such failure of disclosures can mislead information on the company’s financial statements.
“The objective of financial statements is to provide information about the financial strength, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions.”
Financial Statements and Notes on Financial Statements: This is the most important section for any user of the annual report. Greencore started this section with the company’s 2014 and 2015 Income Statements. These statements give us information regarding Greencore’s sales revenues, its cost of sales, operating costs, income before tax, data about the company’s taxation, its net profit for 2 years, and Earnings Per Share. The readers can get an idea about the company’s profitability for the last 2 years from these statements. Next we have the ‘Group Statement of Recognised Income and Expense.’ Then there are the 2014 and 2015 Balance Sheets of the company. The balance sheet works as the mirror of the company. It portrays the exact financial condition of the company at the end of the year. The side-by-side presentation of 2 years’ balance sheets gives the users an idea about where the company is improving and it is lagging behind. Greencore’s balance sheet gives us an idea about the company’s liquidity, its capital structure, and its financial strengths and weaknesses. After that, we have the Cash Flow Statement, which illustrates the company’s cash inflows and outflows through its operating, investing, and financing activities. This statement reveals how liquid the company is, and how capable it is to meet its short-term obligations. There are some other financial statements like the ‘Statement of Changes in Equity’ presented in this section that provides the users with additional information . Finally, we have the notes on financial statements part that shows us what kind of accounting practices (accrual or cash basis) the company has been following, what accounting and financial reporting policies and standards it has been following and implementing, and how the company is adhering to the recognised accounting and financial reporting
It is of utmost importance when operating a company or business that all financial statements are accurate. Accurate financial data is needed to get a good picture of how the company is handling its revenue and show how well the company has done in the past. This information is helpful to managers running the company, to investors that may invest in the company, and to creditors who may extend credit to the company. The financial information is also helpful in the company acquiring revenue in the future.
Financial statements include information that can help a firm or business know the stability of their organization. Financial statements
A business uses accounting to determine operational plans in the future, to review past performance and to check current business functions. Management and financial accounting have different audiences, as investors are not usually involved in the day-to-day operations of the business but are concerned about their investment, whereas managers need information quickly to make daily business decisions. Financial accounting produces information that is used by external parties, such as shareholders and lenders yet management accounting produces information that is used within an organization, by managers and employees. The main objectives of financial accounting are to disclose the end results of the business, and the financial condition of the business on a particular date. The main objective of management accounting is to help management by providing information that is used to plan, set goals and evaluate these goals. Besides that, financial accounting is legally required to prepare financial accounting reports and share them with investors and management accounting reports are not legally required. In addition, financial accounting is more focuses on history and reports on the prior quarter or year however management accounting focuses on the present and forecasts for the future. Financial accountings are reported in a specific format, so that different organizations can be easily compared. Format of management accounting is informal and is on a department or company basis as needed. The reporting frequency for financial accounting is either annually, semi-annually, quarterly or yearly and for management accounting is daily, weekly or
The major objectives of financial statement analysis are reviewing the company’s performance over past periods, assessing the current financial position, forecasting profitability trends and forecasting financial failure (Fazal, 2011). These objectives in turn satisfy the ultimate objective of providing
To entice new investors, most companies assemble their financial statements on fine paper with pleasing graphics and photos in an annual report to shareholders, attempting to capture the excitement and culture of the organization in a "marketing brochure" of sorts.