Financial Reports of Tesco plc Essay

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Introduction

In the current competitive supermarket industry one of the biggest company is Tesco plc. Tesco operates 2318 stores in 12 countries and employs 380,000 people around the world. As for other companies in the market, the main purpose of the business is maximizing profit for its owners. What's more Tesco trying to expand in international market, thus it is possible to find some Tesco supermarkets in continental Europe, in some parts of Asia and in some cities of the United States. As other public companies do, Tesco have to provide annual reports to the public that include the financial statements of the company, such as Statement of financial position, Income Statement, Statement of Cash flow and Statement of Equity changes.
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Tesco, as other companies, uses IAS or IASB accounting standards that are in general same thing, that makes financial information of different entities comparable. Also in annual reports it shows the information from the previous year, so it helps to compare whether business doing well or not and for how much it become better off or worse off comparing with the last year. The information within the financial reports is reliable because it had been checked by the audit company- Pricewaterhouse Coopers. The auditing shows that the reports are free from omissions and properly been prepared with accordance to UK Generally Accepted Accounting Practices. In the notes given for financial reports, it says that financial liabilities classified upon the substance.

Statement of Financial position

“Statement of financial position identifies the resources controlled by the business and the source of the funds that were used to acquire the assets”( A.Benedict & B.Elliot)

The balance sheet is basically all about assets, liabilities and the equity of the business. The information in the balance sheet will be especially interesting for current and potential investors of the business. The balance sheet tells to investors how much money business has, and how much money it owes and the amount of equity. At the same time it shows to managers whether the business doing well or not and for suppliers it shows whether the business is

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