Scottish Power :: Business and Management Studies

Scottish Power Using examples from the yearbook report, explain how Companies Actlegislation and another(prenominal) regulations influence the information containedtherein.It is important for a pedigree to create and maintain accuratefinancial records and to know ab fall out the different users of financialinformation. Every business has to meet internal and externalreporting requirements to show its financial health and to meet legaland other requirements. The reasons why businesses therefore keepaccurate records ar Assessing its financial position - businesses assess their financialposition every year so they know the business is making efficient useof resources to provide the indispensable financial return to achieve aprofit or suffered a loss. Businesses can find out if it as theability to generate cash to find continued trading and to makedividend payments. This can be done by using figures from theprofit/loss account and balance sheet to work out appropriate ratiosuch as acid test ratio, which shows the liquidity of the business. Compare its performance with previous years - this can showbusinesses its future prospects and foretell future trends to showprofit and loss. Good records provide the financial data that help youoperate more efficiently, thus increasing the profitability of yourenterprise. This is because accurate and masterly 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 predictable 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 well-nigh of it activities , containing a chairmans statementand other promotional or publicity material and extra material by aclosely printed constituent carrying out complex and detailed financialdata. The annual reports are for the year ending March 2004.Companies Act 1989 is to amend the law relating to company accountsto make freshly 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 confer rising 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