Contemporary Issues in Accounting

Assignment 1 – Essay + Poster

2,000 words

Questions to be covered

How would the stakeholders of a company, listed on the London Stock Exchange, make use of the published annual report and account?

Guidance

You should focus on the statement of profit or loss, the statement of financial position, and the cash flow statement. References to the other published information are also encouraged.

Purpose of the assignment

This assignment provides an opportunity for you to reflect on your knowledge of accounting and its relevance to a wide selection of users.

This essay should be informative, easy to follow, and delivered in an interesting and clear manner. You should be able to demonstrate the extent of your understanding of the basic theory and practice of FINANCIAL accounting in the modern context, and its value to business and the wider community.

The poster should be informative, easy to understand, and visually appealing.

This assignment will assess the learning Outcomes 1,2 and 3

1. Demonstrate an understanding of the basic theory and practice of financial and management accounting and its basic terms and concepts.
2. Explain the value of the financial and management accounting process to a business.
3. Demonstrate an understanding of the current contemporary issues affecting the accounting discipline.

Assessment Criteria

The essay will contribute 80% to the overall grade (1,600 words). It will be assessed using the following weighting:

25% Clarity expression

25% Addressing the question

25% Content & range of knowledge

25% Conclusion

Assignment Requirement

• Definition of Accounting
• Definition of Annual Report
• Purpose of Annual Report
• Definition of Balance sheet, Profit & Loss and Cashflow – apply this with my choosing company (MORRISONS PLC) using third person. identify their issues of 2021 - 2022 and reflect it with annual report.
• Comparison between 2021 – 2022 of Balance sheet, Profit & Loss and Cash Flow
• What is Shareholder and Stakeholders?  Give examples
• Explain the differences between Shareholders and Stakeholders
• What are Internal and External Stakeholders?
• With the aid of the diagram, explain each example of internal and external Stakeholders and what they do.

Shows systematic and accurate knowledge and understanding of key theories beyond what has been taught. Theories are consistently and appropriately applied in the assignment.

Please use Harvard references.

Appendix

Our Writer`s Response:

Stakeholders of a company listed on the London Stock Exchange (LSE) use the published annual report and accounts as a valuable source of information to assess the company`s financial health, performance, and overall strategic direction. Here`s how different stakeholders may make use of the annual report:

1. Shareholders/Investors:
   • Financial Performance: Shareholders analyze the financial statements (income statement, balance sheet, cash flow statement) to evaluate the company`s financial performance over the past year.
   • Dividends: They look for information on dividend payments and the company`s dividend policy.
   • Strategic Direction: Shareholders assess the company`s strategic goals, major initiatives, and future outlook provided in the management discussion and analysis (MD&A) section.
2. Potential Investors/Analysts:
   • Risk Assessment: Analysts examine the risk factors highlighted by the company to assess potential challenges and risks.
   • Competitive Position: They analyze the competitive position of the company and its industry positioning.
   • Management Commentary: Analysts pay attention to the management commentary to understand the company`s future plans and management`s outlook.
3. Creditors/Bondholders:
   • Financial Health: Creditors assess the financial health of the company to determine its ability to meet debt obligations.
   • Liquidity Position: They analyze the cash flow statement to evaluate the company`s liquidity and ability to generate cash.
4. Employees:
   • Job Security: Employees may look at the financial stability and profitability of the company to assess job security.
   • Compensation Policies: They might be interested in information about executive compensation and employee benefit programs.
5. Regulators/Government Agencies:
   • Compliance: Regulators check whether the company complies with financial reporting standards and legal requirements.
   • Transparency: They assess the transparency of the company`s financial reporting and governance practices.
6. Customers and Suppliers:
   • Stability: Customers and suppliers assess the stability and continuity of their business relationships with the company.
   • Market Position: They may look at the company`s market position and innovation plans.
7. General Public/Community:
   • Corporate Social Responsibility (CSR): The general public may be interested in the company`s CSR initiatives, environmental impact, and ethical practices.
   • Community Impact: They might look for information on the company`s contributions to the local community.

In summary, the annual report and accounts serve as a comprehensive document that provides insights into various aspects of the company`s operations, financial performance, and strategic direction, catering to the diverse interests of its stakeholders