Financial Analysis of Ted Baker & Burberry

7252 WordsOct 9, 201430 Pages
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

More about Financial Analysis of Ted Baker & Burberry

Open Document