Scottish Power :: Business and Management Studies

Scottish Power Using examples from the annual report, explain how Companies twistlegislation and other regulations influence the information containedtherein.It is important for a backup concern to create and maintain accurate pecuniary records and to know ab reveal the varied practisers of financialinformation. Every blood has to meet internal and external report requirements to show its financial health and to meet legaland other requirements. The reasons why patronagees therefore keepaccurate records are Assessing its financial position - businesses prize their financialposition every year so they know the business is making efficient useof resources to provide the necessary financial exceed to achieve aprofit or suffered a loss. Businesses can develop surface if it as theability to generate cash to ensure continue trading and to makedividend payments. This can be done by exploitation figures from theprofit/loss account and balance sheet to work out appropriate ratiosu ch as acid test ratio, which shows the liquid of the business. Compare its performance with previous years - this can showbusinesses its succeeding(a) prospects and predict future trends to showprofit and loss. Good records provide the financial data that help youoperate more efficiently, thus increasing the advantageousness of yourenterprise. This is because accurate and complete records enable you,or your accountant, to identify all your business assets, liabilities,income and expenses which, when compared to appropriate industryaverages, help you pinpoint the strong and weak phases of yourbusiness operations over the years.The annual reports that I am going to use for this piece of work arefrom a well-established company Scottish Power. The sure viewof a company annual report and set of accounts is a glossy booklet,generally A4 size there is an annual report in the appendices. Theannual report is illustrated with photographs of the companysdirectors and some of it activities, containing a professorships statementand other promotional or publicity real(a) and extra material by aclosely printed section carrying out complex and detailed financialdata. The annual reports are for the year windup March 2004.Companies Act 1989 is to resort the fair play relating to company accountsto make smart provision with respect to the persons entitled forappointment as company auditors to amend the Companies Act 1985 andcertain other enactments with respect to investigations and powers toobtain information and to visit tender powers exercisable to assistoverseas regulatory authorities to make new provision with respect tothe registration of company charges and otherwise to amend the lawrelating to companies.1The relevant rules are in material form in the Companies Acts 1985 and