Financial Report Essay Example | Topics and Well Written Essays - 250 words

Financial Report - Essay ExampleThe company has a wide range of stakeholders such as the investors, the creditors, the government, customers, employees and the public. As mentioned above, the users have diverse needs, which ar met through the provision of the financial statements. The key features in Sand all Arnolds financial statements are the income statement, the statement of the financial position for ii years, 2012 and 2013, and the independent auditors report (Gibson cc9, pp. 193)If the provision of the 30 million worth of claim is not include in the Sandall Arnolds financial statement, the auditor will issue a modified audit opinion ( type likelihood of a misstatement) for the reason that all other items are correctly stated but the provision. However, if the provision is made, the auditors will give an unmodified opinion showing that the companys financial statements premise a true and fair view of the financial position. The two corporate governance deficiencies identi fied are the failure of the board of directors to develop remuneration share of other directors based on performance evaluation. Second, the board of directors disregarded a significant internal management process (performance evaluation). In order to improve termination making, the management should observe the rules and regulations set out by the companys founders. Second, the board of directors should exercise fairness and probity when making decisions (Bagshaw 2013, pp. 20-23)Based on the two-year income statement of Sandall Arnolds company, the companys revenue increased by 1.612% between 2010 and 2013. The gross profit increased by 96% between the two periods. The costs of sales decreased by 8.969% between the two periods. The profit before tax increased by 242.86% and the profit increased by 200% between the two years. The above movements are due to the revenue increase and a decrease in costs of goods sold