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
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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
Revenue income is income generated by sales of goods or service done by a business for instance sale of goods to customers, rent received from debtors, commission received etc. Revenue income is money that comes into the business from performing its day by day
Revenues are recognized in a net basis and only commissions they retain from each sale are reflected under the company’s financial statements.
Reports revenues and expenses for a specific period of time. A firm's revenues, gains, expenses and losses are listed on the income statement. Revenue is money earned from a company’s
By 30 June 2009, the company currently has 123 stores in Australia and New Zealand and management has
a. Number of stores: In 1992 the company had about 140 stores in the Northwest and Chicago areas. By 2002 the company had approximately 5,886
This report is going to analyse and evaluate the Ted Baker plc. by providing the most important ratios of the company and interpretations to them. Furthermore, it is going to recommend to hold shares of this company to existing shareholders and also recommend potential investors to purchase the shares of Ted Baker plc. since the return of the company is expected to be high in the nearest future.
The brand expanded into Canada after receiving success in America, and later opened their first store outside of America on December 2008 in London. They have expanded from one location, to now having five hundred and seventy eight locations across the globe.
The Company currently offers over 6,000 products in these product categories. During fiscal 2000, the Company increased its store count by approximately 15%, with the addition of 47 new stores, including nine small-market stores and, as of December 2000, was operating more than 400 stores in 41 states. The Company anticipates opening approximately 60 stores in fiscal 2001.
The Burberry 2011 Annual Report does in general meet the conditions of the Combined Code. Beginning on page 66 is the Director's Report. This section extensively reports on the Board of Directors, including their biographies, the corporate governance statement, information and financial reporting, relations with shareholders and other elements of the Board's function. The Board provides leadership for the company with respect to its internal control. The Audit Committee is responsible for this internal control. There are five members of the audit committee, and they are all independent.
As at 31 December 2009, there were 195 franchised complexes throughout Australia. They have also rapidly expanded their offshore markets over the past few years, there are 70 company-owned stores located in New Zealand (31
As of Feb 28, 2014, the company had approx. 10,000 employees & 246 retail stores in 20 countries. The company has business in the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea, and China. The company also operates an e-commerce website with 12 different localized online stores across the world.
The company currently has 375 stores in 41 countries. Products are also online through Company-owned websites. Merchandise is purchased from more than 1,000 vendors having factories in approximately 40 countries. No vendor accounted for more than 5 percent of total purchases in 2013 and approximately 98 percent of purchases are from outside the United
Britvic PLC was compelled in 2007 to increase with approximately 10 days the period in which credit customers pay their liabilities, so that the impact of economic recession over the organisation’s profit was reduced by maintaining the drop in the level of sales at an acceptable level. One year later, in 2008, an 8 days decrease in his ratio was recorded, followed by a 2 days increase in 2009. As reported by their financial statements, the debtors’ days ratio has been stable for the past two years, a sign of recovery after the economic recession, but not as low as in the economic boom, characteristic for the 2005-2006 period.
Burberry Group plc (Burberry) is into the global luxury sector. It works in the designing, marketing and sourcing of outerwear, women’s wear, men’s wear, non-apparel and children’s wear categories. It distributes through a diversified network of retail, wholesale and licensing channels worldwide. The company operates its business in three ways by region, by product and by channel. Burberry distributes its products in Europe, Spain, Americas and Asia Pacific through retail and wholesale channels and with selective license arrangements. In addition, it licenses third parties to manufacture and distribute products using the Burberry trademarks. It categorizes
Her transformation of Burberry had become a text book example of how to transform a business that other luxury brands are sometimes said to be “doing a Burberry” (Financial Times 2004). In 2005 Angela Ahrendts, replaced Bravo as Chief Executive who made changes to Burberry product line by making checks more stable and by focusing more on higher-margin products like handbags and perfumes (Friedman 2011).