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Financial Accounting coursework - Essay Example
Finance & Accounting
Pages 5 (1255 words)
Financial Accounting coursework Table of Contents Relevance of Accrual Accounting 3 Assumptions related to Going-Concern for preparing financial statements 3 Key accounting concepts used in preparation of financial statements 4 Marks and Spencer Group Plc: Accounting policies 5 Marks and Spencer Group Plc Financial statements: information on assets and liabilities 6 Marks and Spencer Group Plc: Impact of impairment 6 References 8 Relevance of Accrual Accounting The method of accrual accounting is one of the most commonly used methods of accounting adopted by multinational companies like Marks and Spencer…
Thus the accrual method of accounting measures the position and performance of the company based on the transactions made in the course of business irrespective of the cash receipts and payments done for the business transaction. The accrual method of accounting combines the current and expected cash inflows and outflows to determine the consolidated financial position of the company (Sofat and Hiro, 2008, p.36). Marks and Spencer has used the accrual method to determine the expected value of the cash flows based on the historical sales returns so that the accrued figures could be allocated accurately in the financial statements. Assumptions related to Going-Concern for preparing financial statements The assumptions related to going concern for preparing financial statements are that the company would continue its business in near future unless the management decides to liquidate the company or decides to stop operations. ...
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