Assignment 1: Annual Report Project

[Michael Kors Holdings Ltd]

[Fiscal Year 2012]Assignment 1: Annual Report Project

Introduction

The paper aims at evaluating annual report of Michael Kors Holdings Ltd for the fiscal year 2012. Firstly, the paper identifies main sections of the published annual report. Secondly, the paper discusses key factors that have influenced the financial performance of Michael Kors during 2012. Thirdly, the paper confers on the primary assets held by Michael Kors. Finally, the paper conducts evaluation of the published annual report to provide information on the way management has characterized the internal control environment at Michael Kors.

Main Sections of Annual Report

The annual report of Michael Kors Holdings Ltd is published in form 20K. It is divided into three parts. Each part is comprised of at least three sub sections.

Part I

Part one of the annual report is sub divided into twelve sections that provides information on company profile, management, performance and market review. It provided key highlights of the financial performance by providing a quick comparative analysis of past five years overall performance (Michael Khor, 2012). The key financial information was based on consolidated financial data of the company. In addition to this, part one highlighted business risk exposure by identifying key risk factors faced by the company in the international market of footwear and apparel industry (Michael Khor, 2012).

These risk factors were linked with both internal (such as growth strategies, departure of company founder) and external business environment (competition, changing market conditions and consumer preferences) of the company. A sub section of the report was identifying information related to company development, business overview and organization structure in the light of key market elements and business processes. Moreover, it provides information on company securities (Michael Khor, 2012).

Figure 1: Part I of the Annual Report (Michael Khor, 2012, p. i)

Part II

The second part of annual report is comprised of eleven elements that shed light on audit, control procedures, corporate governance and code of ethics. This part has highlighted different business transactions and control measures related to material modification and financial reporting. It provided glance of financial experts who are a part of the audit committee. A sub section was dedicated to code of ethics and other service fees paid by the company. An important component of this section was information about the corporate governance and company policies (Michael Khor, 2012).

Figure 2: Part II of the Annual Report (Michael Khor, 2012, p. i)

Part III

Finally, the ...