Bus 1350 Unit 1 Assignment

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COVER SHEET BE100 Introduction to Accounting

Usefulness of including ‘strategic report’ as part of the annual report of companies in the UK to users
An annual report is an official financial statement published annually by a company and sent to interested parties (Readyratios.com, 2015). The report assesses the company’s financial activities and operations throughout the preceding year. On October 2013, the UK companies act of 2006 was amended and required listed companies to include a strategic report as part of a company’s annual report. The report requirement for UK companies were
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Preparing a strategic report could help companies foresee current year earnings and run a wider image of shareholder value creation in their annual reports (Hawsons, 2015). The review should be well-adjusted and complete, to the extent needed for an understanding of the progress and performance of the business, include analysis using Key Performance Indicators. This essay will discuss the usefulness of a strategic report to various users of the annual report of a company. It will first consider the users of the annual report and the use of the annual report to them, it will then go on to critically describe the usefulness of the strategic report to users and thereby linking them with examples from the Strategic report section of the 2015 Annual Report of Marks & Spencer and…show more content…
With the information the strategic report provides, it gives guidance to users on how to make credible decisions (Hawsons, 2015). To customers, it gives them an insight of how the company has treated their customers during the year, what they aim on giving to customers, and what their plans for the future is. Tesco PLC Annual Report and Financial Statements 2015, p. 10 states “our aim is to make sure everything in the business is set up in the most efficient way to create value for customers”, this information will be very useful to customers particularly because it gives them an understanding of what the company is planning to achieve regarding them. Page 9 of Tesco’s annual report and financial statement likewise gives a vital information that “Tesco exist to serve customers and our business model has customer as our number one priority” this information is vital because on its own will surely captivate the minds of customers that come across it and however has the ability to increase sales and repeat purchases particularly since it stated in the key performance indicator section that sales have declined by 1.4% and customer loyalty by 2.5%. “For the first time, we have bought food and fashion together under one brand identity” (M&S annual report and financial statement p.7) this information is aimed to make customers

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