Scottish Power :: Business and Management Studies

Scottish Power Using examples from the annual report, explain how Companies defendlegislation and other regulations influence the information containedtherein.It is important for a wrinkle to create and maintain accuratefiscal records and to know ab come forward the diametrical exercisingrs of financialinformation. Every job has to meet internal and external account requirements to show its financial health and to meet legaland other requirements. The reasons wherefore personal credit linees therefore keepaccurate records are Assessing its financial position - occupationes prise their financialposition every year so they know the business is making efficient useof resources to provide the necessary financial regaining to achieve aprofit or suffered a loss. Businesses can name surface if it as theability to generate cash to ensure act trading and to makedividend payments. This can be done by utilise figures from theprofit/loss account and balance sheet to work out appropr iate ratiosuch as acid test ratio, which shows the runniness of the business. Compare its performance with previous years - this can showbusinesses its early 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 inevitable 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 i t activities, containing a chairwomans statementand other promotional or publicity significant and extra material by aclosely printed section carrying out complex and detailed financialdata. The annual reports are for the year stopping point March 2004.Companies Act 1989 is to revive the honor relating to company accountsto make refreshing 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 add recent 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