Essay About Financial Reporting Policies Of Abbey Plc And International Financial Reporting Standards

A Brief Report on the Financial Reporting Policies of Abbey Plc – Research Paper – alinam
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A Brief Report on the Financial Reporting Policies of Abbey Plc
Table of Contents
Abstract
Introduction to IFRS
Company Profile
Financial Reporting Policies
IAS1 – Presentation of Financial Statements
IAS 2 – Inventories
IFRS 10 – Consolidated Financial Statements
IAS 21 – The Effects of Changes in Foreign Exchange Rates
Literature Review
Abstract
The objective of this project is to prepare a brief report on financial reporting policies of public limited company. For this purpose, the financial statements of chosen company (Abbey plc) were analysed and compared to financial statements of the company in the same industry (Telford Homes plc). In this paper, International Financial Reporting Standards (IFRSs) were reviewed and it was examined how the adoption of these standards affects companies’ financial statements. Four accounting standards were examined more closely and companies’ compliance with these standards was studied based on Annual Reports.

Introduction to IFRS
International Financial Reporting Standards (IFRSs) are the rules that companies must follow in preparing financial statements. These standards act as a common language for business affairs to make financial statements understandable and comparable to users in different countries. International Accounting Standard Board (IASB) was developing these standards since 2001. Growing shareholding and trade around the world led to the need of introduction of IFRSs and they are highly important for the companies that have dealings in several countries. Before IASB was established International Accounting Standards Committee (IASC) was responsible for developing accounting rules known as International Accounting Standards (IASs). Since 2001 over 100 countries including all EU member states either required or permitted IFRSs.(www.unctad.org, 2008)

“IFRSs are developed through a formal system of due process and broad international consultation that involves accountants, financial analysts and other users of financial statements, the business community, stock exchanges, regulatory and legal authorities, academics and other interested individuals and organisations from around the world.” (IASB, 2004, p.15)

IFRS foundation defends the use of IFRSs across the EU stating that adoption of IFRSs improves quality and brings clarity and transparency in financial reporting. However IFRSs are heavily criticised particularly with regards of using fair value model instead of depreciated historic cost. “Critics have blamed the fair value model for disproportionately overstating banks profitability and in turn overstating profit enabling excessive dividends to be paid. The upshot of all this led to the financial crisis, resulting in banks having to be bailed out by the taxpayer.” (Collings, 2010, p.1)

The main purpose of financial statements to present true and fair view of a company’s position and IFRSs are the rules to be followed by accountants to prepare books of accounts to be comparable, understandable, reliable and relevant.

“Some British critics claim IFRS, adopted by the EU in 2002, has made accounting less prudent by undermining or even jettisoning the principle that financial statements must be ‘true and fair’.” (Financial Times, 2013)

Company Profile
Abbey Plc is a construction company and its principal activity is a residential housing development in the United Kingdom, Ireland and Czech Republic. Abbey Plc is engaged in property investment, house rentals and plant hire. It operates a plant hire division, M&J Engineers Limited, which is located in the United Kingdom.

Abbey Plc was incorporated in the Republic of Ireland in 1936 as private limited company with the name Torc Manufacturing Company Ltd. The name was changed for Abbey Ltd in 1973 and registered accordingly. In 1984 Abbey Ltd was re-registered as a public company limited by shares.

Abbey Plc’s shares are listed on the ESM on the Irish Stock Exchange and the AIM on the London Stock Exchange. Current share price of Abbey plc on Irish Stock Exchange is €13.30 and £11.20 on London Stock Exchange.

In the year ended 30 April 2016 revenue of the group was €220,603,000 with the profit attributable to equity shareholders of the parent €49,468,000. The average number of persons employed by the group, including executive directors in the financial year was

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(2017, 01). A Brief Report on the Financial Reporting Policies of Abbey Plc. EssaysForStudent.com. Retrieved 01, 2017, from
“A Brief Report on the Financial Reporting Policies of Abbey Plc” EssaysForStudent.com. 01 2017. 2017. 01 2017 < "A Brief Report on the Financial Reporting Policies of Abbey Plc." EssaysForStudent.com. EssaysForStudent.com, 01 2017. Web. 01 2017. < "A Brief Report on the Financial Reporting Policies of Abbey Plc." EssaysForStudent.com. 01, 2017. Accessed 01, 2017. Essay Preview By: alinam Submitted: January 26, 2017 Essay Length: 3,264 Words / 14 Pages Paper type: Research Paper Views: 423 Report this essay Tweet Related Essays How Would International Financial Reporting Standards Affect the Quality of Canadian Accounting Information? How would International Financial Reporting Standards affect the quality of Canadian accounting information? LIMING TONG INTRODUCTION Globalization has a great impact on today’s economy. The 1,849 Words  |  8 Pages International Us Financial Reporting Convergence Report Executive Summary Convergence between the United States (U.S. GAAP) financial reporting standards and those of the International Financial Reporting Standards (IFRS) has been a long 2,515 Words  |  11 Pages Oral History Report for Labor Policy and Law Oral History Report for Labor Policy and Law Maureen Loughran was the person that I interviewed for my oral history report for labor policy and 1,149 Words  |  5 Pages Significance of Financial Reporting ЎҐSignificance of Financial ReportingЎ¦ -An Essay Student No. : S00042472 Student Name : Janak Patel The Collapse of the Corporate Giants like Enron and 1,444 Words  |  6 Pages Similar Topics Book Report Format Observation Report Coffee Shops Philippines Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter