1 M155LON Week 1 Seminar – Financial Statements
Obtain the latest M&S financial statements via the following link.
https://corporate.marksandspencer.com/annualreport
Required
If the report covers a group of companies answer for the group. The accounts may be entitled Consolidated (or Group) Balance Sheet and Consolidated (or Group) Income Statement.
In small groups of 3, attempt the following:
1. Which reporting and accounting standards does the organisation follow to prepare its financial statements?
2. Are the statements prepared under the cash or accrual accounting method?
• Look at the Income Statement
3. What period is covered by the Statement?
4. Did the organisation make a profit or a loss? How does this compare with the previous year?
5. How many different lines of text contain the descriptive term ‘profit’ or ‘income’?
6. Is it helpful to see the different points at which ‘profit’ is reported?
7. Is there any particular type of expense that has changed considerably since the previous year?
• Look at the Balance Sheet
At the foot of the statement you will see some dates and names. This information tells you when the accounts were ‘signed off’. At this date, directors and the independent auditor had to be satisfied that the statements represented a ‘true & fair view’ if reporting under UK GAAP or IAS of the position and performance of the organization.
8. Calculate the net working capital for this organisation. Has it increased or decreased in comparison with the previous year?
9. Has the Equity increased or decreased?
• Look at the Cash Flow Statement
10. Did the company experience a net inflow or a net outflow of cash from operating activities?
11. Has there been an increase or a decrease in the total cash resources held within the company over the reporting period?
You can choose another public company or an organization that you deal with or are interested in studying to work on the questions after the seminar.
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