Tesco Financial Report and Analysis

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Introduction

After the end of every year, major companies produce an annual report to show shareholders or poteintial investors their performers for the year. Throught this report, the company is able to plan and set goals for the next trading year. Therfore, allowing them to identify their weakness and streanght.

The purpose of this report is to analyse Tesco’s annual report. The reoprt consist of a sypnosis of Tescos, describing what it does where it does it, how many people it employs and whether it is growing or declining. It also consist of the main accounting policies used by the company; analyses of its financial performance for four years. It also shows the ratios for the performance analyses. Findings

1 Sypnosis
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Tesco’s financial year represents the 52 weeks that ended 27 February 2007, which is prior to 53 weeks that ended 28 February 2009. In accordance with the International Financial Standards (FRS) were the consolidated financial statements prepared. The statements were also prepared in agreement with the Financial Reporting Interpretation Committee (IFRIC).

2.1 Basis of preparation

The financial statements are presented in Pounds Sterling, generally rounded to nearest million, which are prepared on the historical basis, exempting certain financial instruments such as share-based payments, customer loyalty programmes and pensions that have been measured to fair valued.

2.2 Basis of consolidation/association

Tesco PLC works in association with other groups, and the group financial statements consist of the financial statements of Tesco PLC (the ultimate Parent Company) and the Group’s share of its interest I joint ventures and associates. Also, where necessary, changes are made to the financial statements of subsidiaries, joint ventures and associates to bring accounting policies used into line with those of the Group.

2.3 Use of assumptions and estimates

Managements are required to make judgments, estimates and assumptions that affect the application of policies; assets, liabilities, income and expenses in order to prepare consolidated financial statements. These assumptions and estimates are critical and they are made in

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