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ScenarioCorporate reporting is an area of Accounting and Finance that incorporates Regulatory Framework, Financial
Reporting and Ethical considerations.
You are required to choose a Public Limited Company on which to base your assignment. You are advised to
check with your tutor that your choice of company is appropriate.
Task 1 of 1 – Business Report (ACs 1.1, 1.2, 2.1, 2.2, 3.1, 3.2, 3.3, 4.1, 4.2, 4.3)
Prepare a formal business report, to be presented to the Directors of your chosen company.
You must include the following:
1. An explanation of the main sources for regulatory framework, accounting and corporate concepts,
principles and theories.
2. An explanation of the impact of the accounting and finance framework on business organisations in general
and your chosen company.
3. Explain and assess specific policies, practices and regulations for your business and the business sector it
operates within.
4. An assessment of areas of abuse and exploitation in accounting and financial reporting.
5. An assessment of the importance of accounting concepts, principles and theories.
6. An interpretation and assessment of the published accounting information of your chosen company. You
should prepare additional accounting information, for example ratios, in your interpretation and assessment.
You should analyse and assess the following financial statements:
a. Income Statement
b. Statement of Financial Position
c. Cash Flow Statements
Delivery:
• 1x Business Report
Submission:
• 1x Business Report – 4500 words
Referencing:
• Each section must reflect any supporting Harvard style citations.
• A comprehensive Harvard style reference list must be included at the end of the work.
Evidence to be submitted:
• Business Report - 4500 words
,INTRODUCTION
The Burberry brand has been known as one of the most seasoned and most regarded British mold brands. Over
the past three years, our objective has been to reenergize our brand, recharge our item and lift the client
encounter, whereas keeping up broadly steady deals and balanced working edge.
We have been assisting the communities that support our sector and preserving the natural resources on which
our company depends for more than ten years. Despite the fact that the luxury sector is currently dealing with
serious pandemic-related issues, there is rising optimism that it will return to 3–4 percent annual growth in the
medium to long term as international travel patterns begin to recover from 2022 onwards.
REGULATORY FRAMEWORK
This has to do with accounting and the creation and delivery of reports and statements to outside parties The
goal of an accounting regulatory framework is to assure adequate and relevant accounting information
disclosure, objectivity, and comparability for external users of financial reports.
Most governments have their own financial reporting councils or accounting standards committees. The primary
goal of the international accounting standards committee (IASC), which was established in 1973, is to harmonize
accounting standards on a global scale. The Worldwide Accounting Standards Board (IASB), which publishes its
own international financial reporting standards, took the place of the IASC in 2000.
ACCOUNTING AND CORPORATE CONCEPTS, PRINCIPLES AND THEORIES
The foundation of contemporary accounting is made up of a number of accumulated ideas and practices. These
ideas are broad, fundamental presumptions that serve as the foundation for a company's financial records.
THE BUSINESS ENTITY CONCEPT According to this theory, the company exists independently of the owner. Thus,
the transactions that are included in a company's accounting records and books are only those that have an
impact on the company; they do not include the owner's private activities.
DUAL ASPECT CONCEPT According to this concept, there are two parts of accounting. The assets of the company
represent one, while the claims against them reflect the other (capital and liabilities). According to this notion,
these two qualities will always be equal.
THE MONEY MEASUREMENT CONCEPT The business's transactions and assets must be measured consistently.
This obviously has to be monetary in nature. As a result, some commercial assets cannot be shown on a
company's balance sheet since putting a monetary value on them would be too subjective.
THE REALISATION CONCEPT This clarifies the timing of a business's accounting for a transaction and,
consequently, the transaction's associated profit or loss.
THE HISTORIC COST CONCEPT How are assets measured? Since this is the most objective value when compared
to other valuation techniques like current value or economic value, the historic cost convention mandates that
all assets be evaluated at their original cost.
THE GOING CONCERN CONCEPT According to this idea, we must assume that the firm will be operational for the
foreseeable future while creating the financial accounts. This guarantees that the methodology for estimating
and appraising assets and liabilities will stay unchanged, regardless of cost.
, ACCRUALS CONCEPT This idea serves as the foundation for profit calculation. It demands that the transactions
be recorded as they happen and reported in the financial statements for the periods to which they pertain. It
comprises two components;
When calculating net profit, expenses should be matched against related revenues.
Net profit is the difference between revenues earned (not necessarily received) and expenses charged
(not necessarily paid)
THE PRUDENCE CONCEPT The prudence concept's goal is to ensure that all asset valuations and profit
projections are reasonable and neither unduly optimistic nor pessimistic. The fundamental idea is to maintain
that income or profit should not be accounted for until the firm is almost certain to receive it, but that a
decrease in an asset's value should be accounted for as soon as it is foreseeable or possible.
THE CONSISTENCY CONCEPT According to the consistency notion, once a firm chooses an accounting treatment
for one item, it must use that same treatment to all subsequent identical things. The consistency idea seeks to
guarantee that accounts are similar from one period to the next.
MATERIALITY CONCEPT Information is considered significant if its exclusion or misrepresentation may have an
impact on the users' ability to make economically sound judgments using the financial statements as a guide.
The IASB Framework The materiality notion acknowledges that certain transactions are not significant enough to
warrant wasting time and effort on making sure the proper accounting treatment is given.
Financial Reporting Standard 18 (IFRS 18): it is based on the statement of principles for financial reporting and
discusses the selection, use, and disclosure of accounting rules. The standard describes accounting policies and
sets them apart from estimating methods. Its main objective is to ensure;
All material items adopt the most appropriate accounting policies
The policies adopted are viewed regularly
Disclosed information is only sufficient enough for financial statements.
According to the standard, accounting policies are those concepts, assumptions, norms, guidelines, and
practices that a company uses to determine how the consequences of significant events should be reported in
the financial statements. Any tangible object must first be:
o Recognized in the financial statements as, either assets, liabilities, gains, losses, and changes to
shareholders’ funds
o The measurement basis for the transaction must be selected
According iFRS 18, accounting practices that allow a company's financial statements to present an accurate and
fair picture should be used. Initially Going concern, accruals, prudence, and consistency were designated as the
four cornerstones of accounting in SSAP 2, which was replaced by iFRS 18. iFRS 18 reduces the importance of
both the prudence (now desired) and consistency concepts.
IMPACT OF THE ACCOUNTING AND FINANCE FRAMEWORK
Accounting is essential to running a business because it makes it easier to keep track of income and expenses,
ensures legal compliance, and gives investors, management, and the government access to quantitative financial
data that can be used to make decisions. These standards give a company a framework within which to function,
record daily transactions, measure assets and liabilities, and create financial statements. All around the world,
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