Financial Accounting Essay Example | Topics and Well Written Essays - 2000 words

Financial Accounting - Essay Example One useful content is the report that the company was able to achieve a good set of results in the areas of sales, profits, and earnings per share growth. Another useful content is the increase of the company’s ROCE by 13 percent. The increase brings the company closer to achieving its 2014 benchmarks. Another useful content is restating the United Kingdom as the company’s outstanding core business (http://www.tescoplc.com/). Some of the contents of the chief executive officer’s report are irrelevant. Stating that the company must focus on increasing sales is redundant. All companies strive to increase sales, without exception. Another irrelevant content is the focus on climate change policies. All companies are required to implement environmental laws. (http://www.tescoplc.com/). (b). Chairman’s Statement. Some of the contents of the Chairman’s report are useful. The useful contents include reporting the company’s successful business operati on during the 2011 accounting period. Tesco’s Chairman, David Reid, emphasized favorable financial results in the 2011. Another useful content is stating the current year’s dividend is 10.8 percent higher than the prior year’s dividend distribution. Some of the contents of the Chairman’s Review report are irrelevant. ... (b) Audit Committee Chairman’s Report. Some of the contents of the Audit Committee Chairman’s report are useful. One of the useful contents is focusing on the Audit Committee’s meetings focusing on internal control matters. Another useful content is stating that the Audit Committee meetings are done five times during the year. Likewise, another useful content states that the affected departments cooperated with the Audit Committee. Some of the contents of the Audit Committee Chairman’s report are irrelevant. One irrelevant content is stating the group internal controls and risk management processes are embedded in their businesses. All businesses are required to implement internal controls to reduce or stop fraudulent and erroneous transactions. Another irrelevant content is stating the board is organized each year to one or more of the Group’s international businesses. PART TWO Background Information (a) Property Plant & Equipment IFRS compliance: Property, Plant and Equipment. Tesco Plc records the ? 24,398 m property plant and equipment at cost less accumulated depreciation. IFRS standard Section 17, Property, Plant, and Equipment, requires entities to property, plant, and equipment at cost less accumulated depreciation. Cost includes all amounts paid to put the said assets into operations. The same IFRS concept requires entities to record the same assets at carrying value (net of accumulated depreciation). The assets must be depreciation over each asset’s useful life (Mehta 2010) Intangible Assets. Tesco Plc complies with International Financial Reporting Standards (IFRS). Specifically, Tesco Plc’s ?4,338 m goodwill and other intangible assets amount complies with IFRS no. 3, Business Combinations, which states that must identify