Corporate Reporting Essay example -- essays research papers fc

ToElizabeth Bruce railroad line ManagerFromCharvin Ebanja Accountant Date 7 November 2002SubjectIntroduction and reciprocation of Directors (Pentium plc) concerns about the use of published financial statements for evaluating the success of a company. You should hold forth the purpose of financial statements for respective(a) stakeholders. You should also discuss the impact the contrasting accounting policies take for on the final published figures.The company we have chosen to focus on is the Selfridges Group plc. In this report we leave behind look at the published financial statements to analyse their financial mathematical operation and positioning. We allow for also focus on the objectives, limitations and users of financial statements. As healthful as the how the various accounting policies impact on these statements. Before discussing directors concerns we must(prenominal) look at the objectives of the financial statements. The ASB states in their statement of principles, that the objective of financial statements To provide information about the reporting entitys financial implementation and financial position that is useful to a wide range of users for assessing the stewardship of concern and for making economic decisions. It rotter usu eachy be presumed that this objective can be met by focusing exclusively on the information necessarily 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 skill to gene regularize cash ( including the timing and the certainty of its generation) and assessing the entitys financial adaptability financial 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 find out bespoke financial information to suit their particular requirements th e vast bulk will have to rely on the published financial statements. Although 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 pace had increased to 3 = 1. Euroself decided to sell their asset for 96000. With the return they repaid their loan, and returned Selfridges sign 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) 32 make out Capital 24 8Loan (3=1) 24 2448 32Exchange gain/(loss) 12 (4)Under the blase method Selfridges will receive 8000 back of their original investment and will show a loss 16000. While under the Closing rate method the company receive nothing bac k 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 account 6th Edition, Alexander & BrittonACCA Study Text, Advanced Corporate Reporting BPP printACCA Accounting Handbook 1999/2000GAAP Handbook 1999/2000The Magic Circle account statement JuneGood Report For Governance Accountancy December 2001