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Financial Analysis of Ted Baker & Burberry

Satisfactory Essays

An accounting analysis

Financial Accounting Assignment

Module 1, August 2014

GEMBA 2015

Group Assignment - Group 9

Scott Couzner

Joseph Lew

Nicole Sia

Jay Tomar

Alex Zupancich

BURBERRY

INTRODUCTION

Burberry is a global luxury brand offering menswear, womenswear, childrenswear, coats, dresses, shoes, accessories, bags, scarves, beauty and fragrance. The quintessentially British brand was first founded as an outerwear brand, well known for it's iconic Burberry trench coat and distinct tartan print.

The brand has over 497 directly operated stores and concessions operating in 32 countries; and via a third-party distribution network- 70 franchise stores in an additional 28 countries and approximately 1,400 wholesale department and …show more content…

Customers gain higher bargaining power and switching costs

ACCOUNTING ANALYSIS

Auditor and last opinion

PricewaterhouseCoopers LLP - clean opinion

Revenue recognition

Revenue, which is stated excluding Value Added Tax and other sales related taxes, is the amount receivable for goods supplied (less returns, trade discounts and allowances) and royalties receivable.

Inventory

Lower of FIFO and net realisable value.

PPE

At cost less accumulated depreciation and accumulated impairment losses.

Depreciation

Straight line

Off B/S items

On 28 March 2011, a £300m multi-currency revolving credit facility was agreed with a syndicate of third-party banks. The facility matures on 30 June 2016.

Leases The Group leases various retail stores, offices, warehouses and equipment under non-cancellable operating lease arrangements.

Accounting year

1st April to 31st March

Goodwill

Is not amortised as is considered to have indefinite value

Subsequent events

From 2015 onwards, the profits for Beauty will not be reported separately going forward this transition year.

ANALYSIS OF FINANCIAL STATEMENTS

Analysing the financial statements, we looked

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