MOD004498 Financial Reporting Assignment Sample
Introduction
Discussion of main requirements for the mentioned standards
Based on the company financial statement illustrated above the researcher has selected 25 listed companies that follow the IFRS accounting statement with respect to different countries. Following the assignment criteria, the researcher has not selected any of the banking and financial organization. In addition to these, the researcher has highlighted and reflected the above mentioned annual financial statement of 25 listed companies and thus showcased the theoretical concepts as per asked questions.
Moreover, in context to the above companies mentioned the researcher has discussed the major requirements of the IFRS as mentioned below:
- IAS 1: Financial statement presentation: In this standard, the presentation of profit and loss account, financial analysis (position) and the income statement of an organizationalmanagementare being prepared. It also includes the prescribed assets, liabilities, expenses, incomes, cash flows, contributions and company equity (Dai and Vasarhelyi, 2017).
- IAS 16: Plant, property and equipment: In this prescribed standard, it generally needs a testing of impairment, property recognition and recognition of equipment and plant respectively. Moreover, an item of equipment or plant should not be carried out at an increasing amount of a recovered rate. The assessment of assets and liabilities is being proposed and computed on the basis of this standard (Kiesoet al. 2020).
- IAS 36: Assets Impairment: In this standard, it ensures that assets of an organization must be on a limited rate of level; so that it does not cross the existence of a recovered amount respectively. The main requirement is company assets and liabilities from its financial analysis of balance sheet (Datar and Rajan,2018).
- IAS 38: Intangible assets: In this IFRS accounting standard, the main requirements include company intangible assets and non-financial assets. In general, the assets which cannot be identified and touched in terms of an organizational management. Examples of such company assets includecopyright, copyright, property and plant (Kornbergeret al. 2017).
- IAS 40: Property investment: In this standard, the company property that has been listed in its financial accounting analysis is being taken as a non-financial asset and hence for further computation the amount is being measured and calculated (Miet al. 2016).
Conduction of research
With respect to the above listed 25 companies; in this section the researcher has taken the 2019-year annual statements of the mentioned companies and answered the following queries to the asked questions mentioned below:
| Serial No: | Name of the selected companies | Sector | Highlights of 2019 financial statement | IAS 1 (Form of company income statement) | IAS 1 (Format of company statement) | IAS 16 (Type of measurement model) | IAS 36 (Impairment) | IAS 38 (Measurement Model) | IAS 40 (Measurement Model) |
| 1 | Wipro | Information Technology (IT) | 2% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By function. | Format of company statement: Income – Single statement. | Cost Model | No, there is no existence for accounts impairment | Cost Model | Cost Model |
| 2 | Infosys Technologies | Information Technology (IT) | 1.5% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By nature. | Format of company statement: Income – Two statement. | Evaluation Model | Yes, the company has made impairment of its plant | Cost Model | Cost Model |
| 3 | Mahindra and Mahindra | Automobile Sector | 2.33% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By nature. | Format of company statement: Income – Two statement. | Cost Model | No, there is no existence for accounts impairment | Cost Model | Cost Model |
| 4 | Tata Motors | Automobile Sector | 4% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By nature. | Format of company statement: Income – Two statement. | Evaluation Model | No, there is no existence for accounts impairment | Cost Model | Fair Value Model |
| 5 | Tesco PLC | Retailing Industry | 3.65% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By function. | Format of company statement: Income – Two statement. | Evaluation Model | No, there is no existence for accounts impairment | Revaluation Model | Fair Value Model |
| 6 | Wal-Mart | Retailing Industry (Online e-commerce) | 3.47% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By function. | Format of company statement: Income – Single statement. | Evaluation Model | Yes, the company has made impairment of its trademark | Revaluation Model | Fair Value Model |
| 7 | Deloitte | Audit consultancy | 5% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By nature. | Format of company statement: Income – Two statement. | Evaluation Model | No, there is no existence for accounts impairment | Revaluation Model | Fair Value Model |
| 8 | Sainsbury’s | Retailing Industry | 2.58% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By function. | Format of company statement: Income – Two statement. | Cost Model | No, there is no existence for accounts impairment | Revaluation Model | Fair Value Model |
| 9 | Amazon | Retailing Industry (Online e-commerce) | 7.56% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By function. | Format of company statement: Income – Two statement. | Cost Model | No, there is no existence for accounts impairment | Revaluation Model | Fair Value Model |
| 10 | Bombay Dyeing | Textile | 1.15% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By function. | Format of company statement: Income – Single statement. | Cost Model | No, there is no existence for accounts impairment | Revaluation Model | Cost Model |
| 11 | BHP | Mining and Metals | 3.66% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By nature. | Format of company statement: Income – Single statement. | Cost Model | No, there is no existence for accounts impairment | Revaluation Model | Fair Value Model |
| 12 | Samsung | Telecommunication | 2.88% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By function. | Format of company statement: Income – Two statement. | Evaluation Model | Yes, the company has made impairment of its machinery | Revaluation Model | Cost Model |
| 13 | Royal Dutch Cell | Oil and gas | 1.5% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By function. | Format of company statement: Income – Single statement. | Evaluation Model | Yes, the company has made impairment of its machinery | Revaluation Model | Fair Value Model |
| 14 | Coca Cola | Customer staples | 2.66% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By nature. | Format of company statement: Income – Single statement. | Evaluation Model | Yes, the company has made impairment of its trademark | Cost Model | Fair Value Model |
| 15 | Disney | Entertainment | 4.59% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By nature. | Format of company statement: Income – Two statement. | Cost Model | No, there is no existence for accounts impairment | Revaluation Model | Cost Model |
| 16 | Intel | Information Technology (IT) | 2.22% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By function. | Format of company statement: Income – Two statement. | Cost Model | No, there is no existence for accounts impairment | Revaluation Model | Fair Value Model |
| 17 | Verizon | Telecommunication | 4.63% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By nature. | Format of company statement: Income – Two statement. | Cost Model | No, there is no existence for accounts impairment | Cost Model | Cost Model |
| 18 | Merck and Company | Pharmaceuticals industry | 3.57% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By function. | Format of company statement: Income – Two statement. | Cost Model | No, there is no existence for accounts impairment | Cost Model | Fair Value Model |
| 19 | United Health | Health care industry | 4.58% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By function. | Format of company statement: Income – Single statement. | Cost Model | No, there is no existence for accounts impairment | Revaluation Model | Cost Model |
| 20 | Apple | Information Technology (IT) | 4.55% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By nature. | Format of company statement: Income – Two statement. | Evaluation Model | No, there is no existence for accounts impairment | Revaluation Model | Cost Model |
| 21 | BP | Oil and gas | 2.50% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By function. | Format of company statement: Income – Single statement. | Evaluation Model | No, there is no existence for accounts impairment | Cost Model | Cost Model |
| 22 | Microsoft | Information Technology (IT) | 3.24% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By nature. | Format of company statement: Income – Two statement. | Evaluation Model | No, there is no existence for accounts impairment | Cost Model | Fair Value Model |
| 23 | Procter and Gamble | Customer goods | 1.25% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By function. | Format of company statement: Income – Two statement. | Evaluation Model | No, there is no existence for accounts impairment | Cost Model | Fair Value Model |
| 24 | Caterpillar | Equipment engines | 0.25% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By function. | Format of company statement: Income – Single statement. | Cost Model | No, there is no existence for accounts impairment | Revaluation Model | Cost Model |
| 25 | McDonald’s | Restaurants | 0.1% sales revenue raised as compared to last year accounting data. | Form of company statement: Expenses – By nature. | Format of company statement: Income – Single statement. | Cost Model | No, there is no existence for accounts impairment | Revaluation Model | Fair Value Model |
Preparation of tables
| Name of the selected companies | Sector |
| Wipro | Information Technology (IT) |
| Infosys Technologies | Information Technology (IT) |
| Mahindra and Mahindra | Automobile Sector |
| Tata Motors | Automobile Sector |
| Tesco PLC | Retailing Industry |
| Wal-Mart | Retailing Industry (Online e-commerce) |
| Deloitte | Audit consultancy |
| Sainsbury’s | Retailing Industry |
| Amazon | Retailing Industry (Online e-commerce) |
| Bombay Dyeing | Textile |
| BHP | Mining and Metals |
| Samsung | Telecommunication |
| Royal Dutch Cell | Oil and gas |
| Coca Cola | Customer staples |
| Disney | Entertainment |
| Intel | Information Technology (IT) |
| Verizon | Telecommunication |
| Merck and Company | Pharmaceuticals industry |
| United Health | Health care industry |
| Apple | Information Technology (IT) |
| BP | Oil and gas |
| Microsoft | Information Technology (IT) |
| Procter and Gamble | Customer goods |
| Caterpillar | Equipment engines |
| McDonald’s | Restaurants |
Presentation of findings
| Name of the selected companies | Highlights of 2019 financial statement |
| Wipro | 2% |
| Infosys Technologies | 1.5% |
| Mahindra and Mahindra | 2.33% |
| Tata Motors | 4% |
| Tesco PLC | 3.65% |
| Wal-Mart | 3.47% |
| Deloitte | 5% |
| Sainsbury’s | 2.58% |
| Amazon | 7.56% |
| Bombay Dyeing | 1.15% |
| BHP | 3.66%. |
| Samsung | 2.88% |
| Royal Dutch Cell | 1.5% |
| Coca Cola | 2.66% |
| Disney | 4.59% |
| Intel | 2.22% |
| Verizon | 4.63% |
| Merck and Company | 3.57% |
| United Health | 4.58% |
| Apple | 4.55% |
| BP | 2.50% |
| Microsoft | 3.24%. |
| Procter and Gamble | 1.25%. |
| Caterpillar | 0.25% |
| McDonald’s | 0.1%. |
Brief summary of the findings
The presentation is done by referring to different websites like yahoo, Bloomberg and google. These websites were very useful in gathering data about 25 companies. The findings clearly indicate that every company has increased in terms of sales. The minimum growth is 0.1% that is concerned with the Mc Donald’s and the highest rate of sales is 4.63% and that is achieved by Verizon.
Conclusion
This is a financial report, and in this financial report all over 25 companies are analyzed and the analysis is made on the sales revenue of 2019. The analysis also focuses on different sectors like the incomer statement, company statement, different measurement models and impairment of the companies. The data provided are original and this report can further help in development of the companies by making new strategies.
References
Dai, J. and Vasarhelyi, M.A., 2017. Toward blockchain-based accounting and assurance. Journal of Information Systems, 31(3), pp.5-21.
Datar, S.M. and Rajan, M., 2018. Horngren’s cost accounting: A managerial emphasis.
Karabarbounis, L. and Neiman, B., 2019. Accounting for factorless income. NBER Macroeconomics Annual, 33(1), pp.167-228.
Kieso, D.E., Weygandt, J.J. and Warfield, T.D., 2020. Intermediate accounting IFRS. John Wiley & Sons.
Kornberger, M., Pflueger, D. and Mouritsen, J., 2017. Evaluative infrastructures: Accounting for platform organization. Accounting, Organizations and Society, 60, pp.79-95.
Mi, Z., Zhang, Y., Guan, D., Shan, Y., Liu, Z., Cong, R., Yuan, X.C. and Wei, Y.M., 2016. Consumption-based emission accounting for Chinese cities. Applied energy, 184, pp.1073-1081.
