FINANCIAL REPORTING COURSEWORK

Financial Reporting Coursework



Table of Contents

Executive Sumamry3

Company Overview4

Recent Development4

Industry Overview4

Return on Equity5

Cash flow analysis of the company5

Inventory Turnover5

Debtors Turnover5

Importance of Financial Information5

Objectives of Financial Reporting6

Persons Interested In the Content of Financial Statements6

General Financial Information6

Accounting Unit6

Accounting Period6

The Business Continuity Principle7

Consistency7

Costing7

Conservative Principle7

Income7

Presentation of Fianncial Information7

Evaluation of Accounting Information7

Fianncial Regulations8

Role of IFRS8

International Accounting Standards8

References9

Executive Summary

The report basically covers the crucial points of lectures that are studied and analyzed during classroom sessions of the course Financial Reporting. The report is divided into several segments that cover overview of the chosen company i.e. BTG Plc. which is an International Health Care company. BTG Plc. is engaged in provision of pharmaceuticals and interventional medicines. The company offers antidotes for treating toxicity that is related to medicines, which are utilized in case of heart consitions and cancer, treatment for snakebites, and interventional oncology products used for treatment of patients with liver or prostate tumors. The report below covers all the aspects and concepts covered in slides provided by instructor with respect to chosen company.

The return on equity for the last three years has been 3.03%, 3.66% and 4.83% of BTG. This overall trend basically indicates a growing trend, which would further improve in future, by keeping in mind its current state of growth. Inventory Turnover ratio indicates the company's ability in converting its stock or inventory in stores or warehouse into sales or revenue for a certain time period. The Inventory turnover for the Company was 3.37. Debtors Turnover ratio indicates the company's ability in converting the unpaid or due balances of customers into cash i.e. earned sales for a certain time period. The Debtors turnover for the Company was 4.72.

The stakeholders of company include employees, board of directors, suppliers, producers, Creditors, debtors, government bodies and accounting specialists like audit and consultancy firms. The company is well aware of the importance of financial information and accounting records. Therefore, the company applies and follows all the relevant accounting standards and laws established by GAAP and IFRS relevant to its transactions and nature of business. The The key objectives of company with respect to its finances are provision of accurate and clear accounting and financial figures that is required to be keen, modest, Appropriate and enough for making financial decisions by key executives of the company, and significant stakeholders.

Financial Reporting

Company Overview

BTG is engaged in developing, acquiring and commercializing pharmaceuticals and interventional oncology items. The company is currently operating across the globe in Europe, North America and Australia. The company is engaged in operating three basic business segments, which are pharmaceuticals, interventional medicine, and licensing and biotechnology (www.btgplc.com, 2012, n.d.).

The pharmaceuticals segment of BTG Plc. develops antidote products in the US and other countries. Other products of this company are CroFab, DigiFab, and Voraxaze. The CroFab offered by company is considered as a quality and approved treatment of bites as per North American pit vipers. The DigiFab is used for treating toxicity that is related to the usage of the heart medicine ...