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Question: Using the statement of accounts and published performance information for two companies of your choice operating i - Essay Example
Finance & Accounting
Pages 4 (1004 words)
Practical Analysis In order to analyse how information is useful to different parties to financial statements, this paper makes use of two companies operating in the UK retail sector. These include Marks and Spencer Plc and Tesco Plc. According to Accounting Theory, financial statements are useful to a number of parties who can be subdivided into internal and external parties…
Despite a tough market, Marks and Spencer was able to make progress on a number of fronts. Sales rose by 2%. These results were in line with the strategic goals of the company. Significant improvements were made in Marks and Spencer’s U.K business in that the company was able to enhance its stores and products. In addition, Marks and Spencer was able to strengthen its brand name (Marks and Spencer, 2012). The multichannel business outperformed the rest of the market with double digit growth recorded in its priority international markets. During the year 2012, Marks and Spencer was committed to delivering consistent returns to its shareholders. The company plans to pay a final dividend of 10.8 per share which is in line with the dividend policy put in place last year (Marks and Spencer, 2012). Marks and Spencer made a profit of ?486.9million in 2012. This is as opposed to ?598.6million the previous year. Shareholders are interested in profit because the overall objective of the company is to maximise the value of shareholders because they are the ones who provide capital for the business. ...