Critical evaluation of the international Accounting Standard and Essay

Critical evaluation of the international Accounting Standard and Financial Reporting Standard that applied on BRITIVC plc - Essay Example investors and lenders. This report specifically aims at the critical evaluation of the key financial information provided in the financial statements of Britvic Plc. Those key items are 1) Revenues, 2) Property, Plant and Equipment, 3) Earnings per share. These key items are evaluated in the light of their relevant accounting standards as to check whether these areas are consistent with providing the useful information to the lenders and investors. The following discussion and evaluation highlights these specific areas on separate basis so that each individual key accounting area can be judged regarding the achievement of IAS and IFRS objective (IFRS and IAS Summaries- English, 2011-2012). IAS 18 covers revenue recognition for the preparation of financial statements. The major criterion for recognizing the revenues is the transfer of risks and rewards between the parties to the sales contract. Seller transfers the risks associated with the selling item in response to a reward received from the buyer. When risks and rewards are transferred to the concerned parties, the revenues are deemed to be recognized by the selling entity. As far as the disclosure requirements of IAS 18 are concerned, minimal disclosure are required such as the total revenue generated during the current period along with comparative figure of the last year (BDO, n.d.). If the financial statements of Britvic Plc. are accounted for the year 2012, it can be clearly observed from the statement of comprehensive income that the company has generated the revenues of around  £1,256 million. In the previous year, the company had upward revenues of around  £1,290 million. From the perspective of disclosure requirements, the company has provided the appropriate disclosure requirements in the statement of comprehensive income (Annual Report Britvic Plc., 2012). Besides this disclosure requirement of IAS 18, certain other requirements relating

London Stock Exchange - Why Invest in Shares Research Proposal

London Stock Exchange - Why Invest in Shares - Research Proposal Example For a while, if we go into the history of stock exchange then, it is to be noted that, it was 11th century in France where the courtiers de change were concerned with maintaining the debts of agricultural communities on behalf of banks. These men could be termed as first brokers. Basic roles of stock exchanges can be outlined as below: This report is all about the importance of the stock market and how trading can be done effectively. It discusses the basic fundamental of the stock market and market variation over time and place. In turn, it explains how trading in stock market changes its behavior in a time frame. In order to make the study realistic, research has been started with an initial account of amount notional 100,000 to invest and manage an active trading policy is followed. Constraints have been put in shares to be bought in multiples of 100 if the price is less than 2 and in multiples of 50 if the price is greater than 2. Debentures and Government stocks, which have a nominal value of 100 each, may be bought without restriction. Along with that, transfer stamp is payable on all share purchases which is 0.50 for every 100 or fractional part of 100. As it is a study oriented trading, hence no provision is kept for overdraft facilities and no other source of finance. The trading period was till 28th March 2008; by this time all the holdings were liquidated and after that whatever observation is done, reported here. This paper first discusses what the stock market is all about and then the necessity of it. The trading table is presented in section 3 which describes a few more basic questions like, how the real market is different from a theoretical one and what are the factors that the market is dependent on etc.