FINANCIAL ANALYSIS

Financial Analysis of TESCO and King Fisher



Financial Analysis of TESCO and King Fisher

Financial Reporting Period

Each company must prepare annual financial statements, which should reflect the company's activities during the year. The Period for which reporting is provided is said to be the financial reporting period. It begins the day after the end of the previous financial year or when a new company from the date of registration.

The financial reporting period of TESCO is from December 31st and ends on December 30th of the next year thus completing the whole fiscal year.

The financial reporting period of King Fisher is from January 1st to December 31st of the same year, thus completing the whole fiscal year.

Accounting Treatment Used and Audit Opinions

TESCO

The accounting method being used in TESCO is UK GAAP. Generally Accepted Accounting Principles (Generally Accepted Accounting Principles, GAAP) - the standards of accounting used in the United States and certain other countries. GAAP is different (in particular, from the International Financial Reporting Standards) by the fact that the GAAP accounting treatment is regulated in detail certain practical situations. The financial year of the company represents the total of 52 weeks ending on 26th of February. The amendments, standards and the interpretation being adopted, follows the FRS interpretations. All these standards and amendments do not have any significant impact on the net assets of the company.

The audit of TESCO is performed by Price water house Coopers (PWC), which is one the leading auditing firms of the world. Audit is conducted through 2 mediums, one is the internal audit and other is the external auditors. The internal audit department of the company is independent to business operations. They have nothing to do with the operations going on in the business, but to see whether it is compliant to ethical procedures and standards. The internal auditor of the company addresses the risk management process and internal control with the reference of Turnbull guidance. The internal audit is based on the risk methodology processes which make sure that the company's risks are properly examined. Following are the responsibilities of the internal auditors at TESCO:

Key Risk Register.

Reviewing and reporting of risk management system.

Internal Control and reports to the board of directors.

Oversight of risk and Control system.

King Fisher

The accounting procedures and measurement are prepared on the nearest Saturday of 1st January each year unless of any exceptions which may occur. The financial year of the company is of 52 weeks that ends on 31st December of every year. This is also the financial reporting period of King Fisher. All of the consolidated financial statements including balance sheet, income statement and cash flow are prepared according to International Financial Reporting Analysis (IFRS). IFRS is one of the most adoptive accounting measures in Europe. International Financial Reporting Standards is a set of documents (standards and interpretations), regulating the rules of the financial statements required for external users to make economic decisions for the company.

From 1973 to 2001 standards developed by the Committee International Accounting Standards Board ...