UMACTT-15-M Advanced Corporate Reporting Assignment Sample
Module Code And Title : UMACTT-15-M Advanced Corporate Reporting Assignment Sample
Introduction
The Britvic PLC is a British producer soft drinks based company it is situated in Hemel Hempstead in England. The organization is mainly listed on the London stock exchange and it mainly depends on the constituent of the FTSE 250 indexes. The most dynamic soft company determines the organisation. In this context, the company is also concerned with providing quality services to the consumer, which is very crucial for the organization to maintain the brand value along with the business. This study is mainly based on that Britvic Company’s financial plans and policies which is very crucial for this organization to enhance its organizational development.
The management of the organization makes some bunnies plans, which are very crucial for the organisation along with the business. The FTSE 250 sindexes is mainly determined by capitalising on a weighted index based on the stock exchange in London. This index helps to identify the financial statement of the company based on the present market condition.
Question A
Company division into the cash-generating unit
.In this context, the Britvic PLC cash-generating units which are most significant for this organization identify the financial issues of the organisation (Aarar and Werner, 2021). The IAS 36 impairment is ensuring that the recoverable amount which is mali associated with eh organization and development of the organization.
It is most significant for this organization to evaluate the fair values along with the less cost and disposal value. It is very essential for the organization to amplify the annual report of the organization. The indication of the impairment report is the most significant for this company to know the market value and the decline.
Assessment of the cash flow
The assessment of thy cash flow ratio, which is most vital for this organization to determine with company’s working capital requirement, is the major component of this organisation to enhance the competitive advantage of the market for their business expansion. The organization needs an amount of capital that is most vital for the company to maintain the case flow to the proper running of the business (O’Connor, 2018).
The cash flow statement of the company helps opt this organization to maintain the calculation of the financial statement of why the company makes profit along with the business. In this context, higher capitalism is the basic need of this company to make high turnover along with the growth of the business.
Indication of impairment
The Britvic PLC management of the organization takes business strategy which is most significant for this organization to enhance the efficiency of the business. In this context, the FTSE 250 index is most reliable for this organization to identify the obstacle of the organization along with their business development. In this context, The indication of the impairment unit is most vital for this organization to identify the gross market interest for their business expansion.
It is determined with the company’s assets are higher than the market statement. In this context the annular report of the Brivic PLC company it is identified that th company makes a high turnover of approximately 1.405. 1 million of revenue in the year 2021.
Estimating value
The estimating gross value according to this Briotvidc PLC is then the process of the findings of the approximation of capital values and which is most important for the organization to enhance ht profit of the business (Parker, 2020). In the annual report of this organization is identified that the organization enhance its gross profit by 103.2m in the year 2021. The organization makes initial plans based on its annual report of the company. The communicative and collaborative approach of the organization helps to obtain sustainable business growth.
Key assumptions
In this context, the organization also focused on the quality of the service to give the proper service to their consumers (Haslam et al. 2021). The organization might provide the quality of the product as well as service to maintain the brand value of the organization. The management of the company might be maintained relationships with the stakeholder and the organization it is most significant for the organization to gain different types of supplier chains along with organizational development (Palermo, 2019). The organization take a policy that is most relevant for that organization to create customers based associated with their business.
Sensitivity Analysis
The financial models of the company it is very crucial for this organization to identify the financial issues and challenges to enhance the organizational development (Palermo, 2019) mainly determine the sensitivity analysis. This analysis is mainly concerned with the input variables and the other variables to enhance the informative data analysis along with the growth of the bunnies. Goodwill of the company
In this context, the organization is also concerned with to gives the quality of the product it helps to maintain the brand value of the company. The offer plans and policy of the organization help to grab the customer’s attention, which is most significant for the organization to make efficient the business.
The capital structure of the company
In the annual report of the Britvic PLC, it is identified that the organization makes high revenue approximately 1.405. 1 million of revenue in the year 2021. The management of the organization makes a communicative approach between the organization and staff it is vital for both organization and employees to increase the productivity system for business growth. The company enhances the cash flow by approximately 132.7 million in the year 2021.
Historical impairment loss record
In this context, the organization has also faced business loss it gives an impact on their business. In the annual report of Britvic Plc, it is identified that the company has faced high losses in the year 2019 during the covid19n pandemic situation. In this context the organization takes some business strategy it helps to give the proper service to the customer along with the organizational development. The company enhances the low revenue in the year 2019 during the covid 19 pandemic situation.
Company’s impairment policies
The Britvic company impairment policy is mainly concerned with the market values and decline which is the most significant for this organization to make a profit. This policy is mainly associated with identifying the interest market rates it helps to identify many problems and challenges of the company. A long term relationship with the stakeholders and organization is vital for the company to gain a competitive advantage along with the present market condition.
Question B
Types of financial instruments
The company might behave the money market instrument it is one of the crucial financial in the instrument of this organization it h helps to make competitive advantage along with the organization development. Debit security is the most vital financial instrument of the organization it helps to expand their business in the global market.
Main financial risks
The organization had faced financial risk along with a competitive market in the global market. Consumer behavioral changes are one of the major issues of this organization it gives an impact on the business (Ruhanen, 2021). The management of the organization might take some initial ideas to overcome the challenges of the company.
Managing the main financial risks
A strong reaction with the stakeholders and organization is vital for the organization to gain different types of the supplier chain along with the organizational development.
Financial risks and its effect on the company
In the Annual report to Britvic plc, it is identified that the organization has faced huge financial loss in the year 2019 during the covid19 pandemic situation. It gives a negative impact on their business and also decreases the gross revenue of this organization.
Material sensitivity
In the annual report of this company, it is infused that the company does not have the materials issues along with the organizational development. The material sensitivity that is associated with the company is the reduction of the brand image.
Financial instruments
In this context, the company have debt security that is the most significant for their organisation to enhance the efficacy of the business (Quinlan and Hill, 2020). This analysis might be helpful for this organisation to explore the simulation along with the financial challenges of the organisation.
Assumptions
The strategic plans of the management of the organisation help to enhance the productivity system of the organisation along with the organisational development.
Provisions for impairment and its measurement
The company is also concerned with the impairment policy it is most crucial for the organisation to gain the present market value and decline of the company along with the business.
Affect of policy on the company
The management plans of the company gives a positive impact on the business to gain a competitive advantage for expanding their business.
Differences in industry practice
The company enhances the plan and policy of the organization it helps to maintain the cash flow of the business.
Hedge accounting and the way it is affect the company
In the annual report of the company, it is identified that the organization has suffered hedge issues during the covid 19 pandemic situation, which gives an impact on their business.
Question C
- Accounting policies of the company
The management of the British PLC has provided a pension plan with the benefits of the unemployed individual. The management plan of stewardship helps the company to monitor the activities of the manager more closely (Dong and Zheng, 2019). Moreover, the engagement policies of the company help to exercise responsibility as well as rights more elaborately.
- Principal assumptions and its realism
The management of the company is trying to adopt advertising as well as a marketing activity to promote the brand value more effectively. The management also provides special attention on the health and well-being of the employee. However, the obligation of the taxation problem is creating additional challenges for the company. The management is also facing additional problems due to time management s well as a finance costs. The pension plan of the company gets affected because of this reason.
- impact of the assumptions
The asset, as well as the liabilities of the company, gets affected due to the impact of the assumption. The balance estimation and the project duration strategy are not able to provide fruitful results as a result of it. Confusion also arises in the economical climate of the organization because of this reason.
- discount rate and its realistic view
How does the company determine the discount rate on the plans? How realistic is it?
The management of the company has done an impairment analysis of the financial condition before estimating a discount rate (Bian et al.2018). The rate of assumption of the product is also considered by the management during this phase. The management also hired various analysts to identify the future demand of the market. It helps the company to construct an effective plan for the growth in future.
- Difference of assumptions
There are certain differences between the assumption and the historical result. It can be said that the management often considers the historical forecast to identify the assumption (Wang et al.2019). The accuracy of the data gets enhanced due to this reason. The equity index of the company is completely dependent on the historical result of the company. It helps the management to make financial planning more effectively.
- material sensitivity
The main raw material for the company is water sugar and other individuals. The management also provides attention to the recycling procedure to analyze the waste management more elaborately. The brand value of the company also gets promoted because of this reason.
- current financial status and its improvement requirement
The revenue of the company is approximately 1400 million pounds. The profit tax of the company is approximately 103.2 million pounds (Dong and Zheng, 2020). The ratio of water intensity is approximately 2 cubic meters of paper tone. The management needs to provide more attention to recycling as well as eco-friendly process to enhance growth.
- Effects of actual and forecasted parameters
The management is providing attention to the plantation of plug plan to enhance the growth. The ecological preserve can be also considered with help of it. Healthy nutrients such as vitamins and minerals are also implemented in the product.
- Impact of pension contributions
The net charge of the pension plan for the employee is approximately 15.9 million pounds. Moreover, the restructuring cost is approximately 6.7 million (Cronqvist et al. 2018). The bond between the management as well as the employee gets strengthened with its help fo it.
- Impact on the current and future financial position
The brand value of the company has increased by approximately 6.6% in the modern days. The cash flow of the company is approximately 700 million pounds. The foreign investors can be allured by the management because of this reason.
Conclusion
On the concluding note, it can be said that “Britvic PLC cash-generating units” have a greater role to maintain the financial market. The company’s continuous attempt is to improve the market by reporting the company’s existing situation. The company through the years has done a lot in the financial segment and therefore the company has the potential to improve its operations based on the issues. The company therefore in the upcoming years will adopt such strategies that will help the company to face future challenges. The financial instruments of the company in the future time will help other companies to gain the benefits of finance in the future.
Reference List
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Cronqvist, H., Thaler, R.H. and Yu, F., 2018, May. When nudges are forever: Inertia in the swedish premium pension plan. In AEA Papers and Proceedings (Vol. 108, pp. 153-58).
Dong, Y. and Zheng, H., 2019. Optimal investment of DC pension plan under short-selling constraints and portfolio insurance. Insurance: Mathematics and Economics, 85, pp.47-59.
Dong, Y. and Zheng, H., 2020. Optimal investment with S-shaped utility and trading and Value at Risk constraints: An application to defined contribution pension plan. European Journal of Operational Research, 281(2), pp.341-356.
Haslam, C., Leaver, A., Murphy, R. and Tsitsianis, N., 2021. Assessing the Impact of Shareholder Primacy and Value Extraction: Performance and Financial Resillience in the FTSE350.
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Palermo, D., 2019. Studies investigating dietary changes during fixed orthodontic treatment and food advertisement content analysis. The University of Liverpool (United Kingdom).
Parker, J., 2020. Ethnic diversity enriching business leadership. The Parker Review.
Quinlan, R. and Hill, J.A., 2020. The efficacy of tart cherry juice in aiding recovery after intermittent exercise. International Journal of Sports Physiology and Performance, 15(3), pp.368-374.
Ruhanen, L., 2021. Cancelled M&A deals and target shareholder returns.
Wang, H., Huang, J. and Yang, Q., 2019. Assessing the financial sustainability of the pension plan in China: The role of fertility policy adjustment and retirement delay. Sustainability, 11(3), p.883.
Will Johansson, E. and Will Johansson, O., 2018. The Effect of Terminated Bids in Mergers & Acquisitions-A study on the effect of terminated bids’ buy-and-hold abnormal returns in a short-and long-term perspective on the European market 1990-2015.
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