Working capital is the measure of liquid assets at the disposal of an organization that can be availed for the purpose of expansion or growth related investment (Atril, P. 2004). Working capital is equal to current assets less current liabilities.
Inventories - The total items that constitute of an organization commercial assets.
The total amount is $10493m. They are collectable within a year.
Current liabilities - is another balance sheet item. It is the sum of money owed by an organization that is due for payment within a period of one year. For GlaxoSmithKline, current liabilities for year 2005 as given in the financial statements include elements such as: -
Trade and other payables - trade payables, wages and salaries, social securities, other payables, deferred income, customer return and rebate accruals, other accruals, dividends payable, derivative financial instruments - $1,0091.7m
Financial regulators such as IFRS body are seen as international marks quality and transparency and thus boost the image of the reporting Entity (Michael W. Maher, William N. Lanen, Madhav V. Rajan. 2004).
4. Mitigation of risks. Effective control also ensures that risks are identified early and assessed properly inorder to come up with timely mitigation plans. This is because it is not possible to completely eliminate risks in such areas as research and development where it's not certain whether investment will bear significant returns..
7. Control programs also ensure group's compliance with audit functions, as well as regulations and ethical codes of practice. This ensures the integrity of financial statements (Horngren, C., Sundem, G. and Elliott, J. (1991).
(i) GSK has ...