RELATIVE RESOURCE MANAGER

Relative Resource Manager



Abstract

British retailer Marks and Spencer was founded in 1884 by Michael Marks and Thomas Spencer in Leeds. The idea behind Marks and Spencer was selling a product at reasonable price to the customers. The main objective of Marks & Spencer is focused on delivering first-rate customer service. Now, Marks & Spencer (M&S) is one of the UK's foremost retailers of clothing, home ware foods and financial services, allocation 21 million customers a week across 700+ UK stores and around the world. This paper will focus on Marks and Spencer plc accounting information from their annual report 2012.

Table of Content

ABSTRACTII

CONTENT OF ANNUAL REPORT1

Chairman's Statement in Marks and Spencer1

Four key aspects of business2

Marks and Spencer's Environmental User Group4

ANALYSIS OF CONTENT5

Business risk on Mark and Spenser5

Liquidity/funding risk5

Interest rate risk6

Foreign currency risk6

Counterparty risk6

Marks and Spencer's Accounting Policy7

Treatment of Depreciation of Property7

Plant and Equipment7

Implications for Reported Profitability7

Consolidated Financial Statements8

Five Key Ratios8

Ratios Calculation9

Financial Performance of Marks and Spencer9

REFERENCES10

Relative Resource Manager - Marks and Spencer

Content of Annual Report

Chairman's Statement in Marks and Spencer

Chairman's statement is very important part in the annual report. It is a small speech by the chairman of the company regarding the performance of the company for a particular year. This statement is important as it offers shareholders, employees, customers and potential investors an overview of the current and future strategies and expectation of the company.

The information that is presented by chairman of the Mark and Spenser is very valuable for the users of financial statement as it has discussed the Performance and dividend of the last year. As the main interest if the these people is the return which can only be obtain if the company is performing well and company top management is aware of the financial and operational performance of the company. The Mark and Spenser have decided to pay 10.8p a final dividend in sequence with the dividend policy which was set out last year.

Chairman has talked about the Governance and the Board in which the implementation of future strategies has been discussed and to strengthen brand and customers. The main area which has been stated in the statement are Leadership and has focused on his and his management leadership and responsibilities qualities, second effectiveness of performance and future improvement, thirdly Accountability i.e. strategic decision-making with respect to mitigation of risk and lastly Engagement through building relationship with different people and channels (corporate.marksandspencer.com).

Chairman discussion on the current program regarding the environmental and ethical program is also essential for the purpose to increase their social welfare criteria; this has been discussed in the chairman report so that their shareholder, customers, employee knew that they are involved in such activities. The chairman statement for shareholder, employees, customers and potential investors indicates that the chairman is completely involved in the operation of the company and has been taking effective decision for the M&S market worth to be increased and they have been in track with the rules and regulation set by government and accounting ...