The balance sheet for Tomkins plc, a British company, is presented as follows. Tomkins plcConsolidated Balance Sheet(amounts in £ millions) Non-current assets Goodwill 436.0 Other intangible assets 78.0 Property, plant and equipment 1,122.8 Investments in associates 20.6 Trade and other receivables 81.1 Deferred tax assets 82.9 Post-employment benefit surpluses 1.3 1,822.7 Current assets Inventories 590.8 Trade and other receivables 753.0 Income tax recoverable 49.0 Available-for-sale investments 1.2 Cash and cash equivalents 445.0 1,839.0 Assets held for sale 11.9 Total assets 3,673.6 Current liabilities Bank overdrafts 4.8 Bank and other loans 11.2 Obligations under finance leases 1.0 Trade and other payables 677.6 Income tax liabilities 15.2 Provisions 100.3 810.1 Non-current liabilities Bank and other loans 687.3 Obligations under finance leases 3.6 Trade and other payables 27.1 Post-employment benefit obligations 343.5 Deferred tax liabilities 25.3 Income tax liabilities 79.5 Provisions 19.2 1,185.5 Total liabilities 1,995.6 Net assets 1,678.0 Capital and reserves Ordinary share capital 79.6 Share premium account 799.2 Own shares (8.2) Capital redemption reserve 921.8 Currency translation reserve (93.0) Available-for-sale reserve (0.9) Accumulated deficit (161.9) Shareholders' equity 1,536.6 Minority interests 141.4 Total equity 1,678.0 Instructions a. Identify at least three differences in balance sheet reporting between British and U.S. firms, as shown in Tomkins’ balance sheet. b. Review Tomkins’ balance sheet and identify how the format of this financial statement provides useful information, as illustrated in the chapter. Professional Research

The balance sheet for Tomkins plc, a British company, is presented as follows. Tomkins plcConsolidated Balance Sheet(amounts in £ millions) Non-current assets Goodwill 436.0 Other intangible assets 78.0 Property, plant and equipment 1,122.8 Investments in associates 20.6 Trade and other receivables 81.1 Deferred tax assets 82.9 Post-employment benefit surpluses 1.3 1,822.7 Current assets Inventories 590.8 Trade and other receivables 753.0 Income tax recoverable 49.0 Available-for-sale investments 1.2 Cash and cash equivalents 445.0 1,839.0 Assets held for sale 11.9 Total assets 3,673.6 Current liabilities Bank overdrafts 4.8 Bank and other loans 11.2 Obligations under finance leases 1.0 Trade and other payables 677.6 Income tax liabilities 15.2 Provisions 100.3 810.1 Non-current liabilities Bank and other loans 687.3 Obligations under finance leases 3.6 Trade and other payables 27.1 Post-employment benefit obligations 343.5 Deferred tax liabilities 25.3 Income tax liabilities 79.5 Provisions 19.2 1,185.5 Total liabilities 1,995.6 Net assets 1,678.0 Capital and reserves Ordinary share capital 79.6 Share premium account 799.2 Own shares (8.2) Capital redemption reserve 921.8 Currency translation reserve (93.0) Available-for-sale reserve (0.9) Accumulated deficit (161.9) Shareholders' equity 1,536.6 Minority interests 141.4 Total equity 1,678.0 Instructions a. Identify at least three differences in balance sheet reporting between British and U.S. firms, as shown in Tomkins’ balance sheet. b. Review Tomkins’ balance sheet and identify how the format of this financial statement provides useful information, as illustrated in the chapter. Professional Research

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement

Section: Chapter Questions

Problem 9E

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Question

The balance sheet for Tomkins plc, a British company, is presented as follows.

Tomkins plc Consolidated Balance Sheet (amounts in £ millions)
	Non-current assets
	Goodwill	436.0
	Other intangible assets	78.0
	Property, plant and equipment	1,122.8
	Investments in associates	20.6
	Trade and other receivables	81.1
	Deferred tax assets	82.9
	Post-employment benefit surpluses	1.3
		1,822.7
	Current assets
	Inventories	590.8
	Trade and other receivables	753.0
	Income tax recoverable	49.0
	Available-for-sale investments	1.2
	Cash and cash equivalents	445.0
		1,839.0
	Assets held for sale	11.9
	Total assets	3,673.6
	Current liabilities
	Bank overdrafts	4.8
	Bank and other loans	11.2
	Obligations under finance leases	1.0
	Trade and other payables	677.6
	Income tax liabilities	15.2
	Provisions	100.3
		810.1
	Non-current liabilities
	Bank and other loans	687.3
	Obligations under finance leases	3.6
	Trade and other payables	27.1
	Post-employment benefit obligations	343.5
	Deferred tax liabilities	25.3
	Income tax liabilities	79.5
	Provisions	19.2
		1,185.5
	Total liabilities	1,995.6
	Net assets	1,678.0
	Capital and reserves
	Ordinary share capital	79.6
	Share premium account	799.2
	Own shares	(8.2)
	Capital redemption reserve	921.8
	Currency translation reserve	(93.0)
	Available-for-sale reserve	(0.9)
	Accumulated deficit	(161.9)
	Shareholders' equity	1,536.6
	Minority interests	141.4
	Total equity	1,678.0

Instructions

a. Identify at least three differences in balance sheet reporting between British and U.S. firms, as shown in Tomkins’ balance sheet.

b. Review Tomkins’ balance sheet and identify how the format of this financial statement provides useful information, as illustrated in the chapter.

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