ICAS Report Planning Template Essay Example for Free

ICAS Report Planning Template EssayABC Ltd supplies a complete range of carpets and furniture to the general public. ABC Ltd has over 75 nationwide high street shops in all major UK cities and many large towns. ABC Ltd also has a 24/7 online shop which is on the head office site in Aberdeen. Over the past seven years the confederacy has grown steadily and now has revenue of over 29 million. It employs around 400 full-time staff. Who are the origines major stakeholders ( upcountry and external) and why?Major stakeholders of the calling could be anyone who has an interest in the business. The business is the sole supplier of a range of furniture. The relationship with this supplier is crucial to the success of the business due to the competitive advantage that it offers ABC.Accounts Department (PIC 1.1, 1.4)How big is the Accounts department? What is the purpose of the accounting cultivate? What type of organisational structure is there? Where does the accounts department film its information from? How does the accountsdepartment inter-relate with early(a) departments within the business?At ABC Ltd the accounts department consists of the Finance Director, bless Accountant, General Ledger and Inventory Clerk, Accounts Payable Clerk, accounts receivable clerk, costing technician As well as payroll and personnel database clerk. The departments deal with the payments of invoices, comparing them to thepurchase orders and the hackneyed receipts. They also monitor the stock and requirement for purchase orders.The department is also responsible for the credit control function, monitoring customers and the payment of the staff wages.In order to carry out these roles Accounts are forced to interact with the whole of the organisation to gather information.ABC use an account spackage which is fully integrated with the rest of the business software. The use an Enterprise Management System called PRONTO. This software allows for multi user access which can be rest ricted based on job roles. Non accounts users can see, and not change essential financial data, such as supplier and customer balances.Describe (in relation to the organisation) the 3 main financial statements Income statement, SOFP and Statement of Cashflow. (PIC What do they show? Who uses them? What decisions are made based on them?IncomeStatementSOFPStatement ofCashflowIncome statements illustrate ABC Ltd profit or loss over a trusted periods of time. The income statement records all revenue, losses and in operation(p) expenses for the business. The IS can be used to show profitability of thecompany. Income statements are used by stakeholders, company accountants, financial directors andmanaging directors. The income statements compared with other income statements within ABC Ltd over a period of time orcompanies within the same sector will be able to determine the operating performance of ABC Ltd. Managers and the companyaccountant may be able to find out what areas of the business are over budget or downstairs budget and make necessary changes.Statements of Financial Position (SOFP) illustrate a snap shot of the business financial condition. The SOFP includes the assets and liabilities of ABC Ltd. This is ia good indicator of the runniness of the business. This statement will again be used by stakeholders, company accountants, financial directors and managing directors. Managers and the company accountant may be able to quickly get a handle on the financial strength and capabilities of the business, its also demonstrates if ABC s assets is enough to cover its liabilities, how liquid its assets are if ABC was to bear bankruptcy, if the business is in a position to expand etc.Statements of Cash flow illustrate the amount of cash generated and used by the business in a given period of time. Again this gives an indication of liquidity and working capital management. This statement will again be used by stakeholders, companyaccountants, financial direc tors and managing directors. Managersand the company accountant may be able to determine whether the business has enough cash to cover payroll and other immediate expenses or liabilities, as well as allow potential lenders to decide whether or not ABC Ltd is able to pay of its liabilities.What accounting regulations cover the preparation of the supra financial statements? (PIC 2.1)In the UK, financial statements are governed by UKGAAP (UK Generally AcceptedAccounting Principles). They are also governed by the Companies Act What other accounting regulations and assiduity specific regulations does the company have to consent with? Does the company have to deal with Money-Laundering regulations? Does the company come under Sarbanes-Oxley? (PIC 2.1)The company also has to comply with the data breastplate act as they hold customer and staff information. Non compliance with this act can have severe financial and reputational implications.They are also required to comply with any rules set out by HMRC when paying employees and also calculating the tax liability of the business. The company does not have to comply with Sarbanes Oxley as this wholly affects companies registered with the New York Stock ExchangeWhen the company has to deal with a change to the above regulations how does it organise this? In what way are system users affected by the change How do they get to find out about the change? (PIC 1.5)The Finance manger and HR manager monitor all regulations and alert the business when changes are made that will affect how the business operates. Changes are implemented by ensuring all staff are made aware of the change via internal communication methods. If need be employees are trained to ensure they fully understand the changes taking place.