SQA ,HND会计第一学期报告.docVIP

1. Introduction SSP plc is engaged in food processing and operating in food manufacturing industry. It will explain the purpose of set of financial accounting information and analyze and accounting ratios. 2. Task 1 Users Purpose of users Sources of financial information Management (Managing Directors, Financial Managers, Departmental Managers, etc.) To allow management to make effective decisions, all areas of accounting information are of interest to them. Management will use the accounting information to compare performance with pervious years and competitors, identify areas of improvement, plan future resource allocation, decide purchasing and pricing policies, etc. Management will use all sources of financial information. The company’s past performance can be assessed using the final accounts and ratio analysis. The ratio analysis can then be compared with previous years or with competitors to show areas of possible improvement or investigation. Budgets are also an important source to management-these are used to identity possible future problems so that proactive measures can be taken. Employees (Executives who are interested in how well their entity is being performed.) Employees are generally interested in job security and future salary negotiations. They will therefore be particularly interested in profitability and the company’s future prospects. For employees who are interested in job security, the cash flow statement can be used as a guide to future prospects. Employees will therefore refer to the trading, profit and loss account and profitability ratios And the company’s profitability will be used as the basis of the future salary negotiations. They will therefore be particularly interested in profitability and the company’s future prospects. Present shareholders (existing owners: ordinary and preference) Present shareholders are primarily interested in the value of their shares and the return on their investments. This group of users