RSPCA and Rolls Royce Group plc
Financial Statement Analysis for RSPCA and Rolls Royce
This essay analyses the financial statements of the RSPCA and Rolls Royce Group plc. The analysis reviews important information derived from their statements and discusses the implications for performance measurements. This analysis also discusses financial statement differences between charity and for-profit companies, as well as considers what additional information would facilitate financial analysis.
Important Information from Statements
A review of the RSPCA 2010 consolidated statement of financial activities (SOFA), the income statement for charities, shows a decrease in incoming resources when compared with fiscal year 2009. Specifically, income from unrestricted, restricted, and endowment funds declined by £13.96m or 10.8 percent (RSPCA, p. 19). Existing and potential funders consider this decrease in assessing the impact to RSPCA operations and would likely believe the decline indicates a serious challenge that must be addressed by Society management. The Chief Executive and Chairman discussed the drop in legacy income in their joint foreword, citing it as the primary reason for the reduction in total income. In response to this challenge, the Society planned to implement a new income generation programme in an attempt to diversify their income generation efforts. The new programme was intended to decrease their reliance on legacy income, given that the competition