ICAS Report Planning Template Essay

first principle Ltd supplies a complete range of carpets and furniture to the general public. ABC Ltd has over 75 nationwide high highway shops in all major UK cities and many large towns. ABC Ltd as well as has a 24/7 online shop which is on the head chest site in Aberdeen. Over the past seven years the smart set has grown steadily and now has revenue of over 29 million. It employs well-nigh 400 full-time staff. Who argon the line of merchandisees major stakeholders (internal and external) and why?Major stakeholders of the line of work could be anyone who has an interest in the billet.The business is the sole supplier of a range of furniture. The relationship with this supplier is crucial to the success of the business cod to the competitive advantage that it offers ABC.Accounts Department (PIC 1.1, 1.4)How big is the Accounts incision? What is the purpose of the bill function? What type of organisational structure is there? Where does the accounts department get its tr aining from? How does the accounts department inter-relate with other departments within the business?At ABC Ltd the accounts department consists of the Finance Director, Company Accountant, General Ledger and Inventory Clerk, Accounts Payable Clerk, accounts receivable clerk, costing technician As well as affordroll and personnel database clerk. The departments grip with the payments of invoices, comparing them to the purchase orders and the stock receipts. They also supervise the stock and indispensability for purchase orders.The department is also responsible for the credit control function, monitor nodes and the payment of the staff wages.In order to carry let on these roles Accounts atomic number 18 forced to inter feat with the whole of the organisation to gather information.ABC wont an account spackage which is fully integrated with the rest of the business softw be. The use an go-ahead Management System called PRONTO. This software caters for multi user acc ess which faecal matter be restricted based on job roles. Non accounts users can see, but not change essential fiscal data, such as supplier and customer balances.Describe (in relation to the organisation) the 3 main financial statements In find statement, SOFP and direction 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 certain heads of time. The income statement records all revenue, losses and operating expenses for the business. The IS can be apply to show profitability of the  family. Income statements are used by stakeholders, play along controllers, financial directors and managing directors. The income statements compared with other income statements within ABC Ltd over a period of time or companies within the same sector result be able to determine the operating performance of ABC Ltd. Managers and the companio nshipaccountant may be able to find out what areas of the business are over budget or under budget and make undeniable 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 liquidness 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 cite 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 us ed by stakeholders, company accountants, financial directors and managing directors. Managers and 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 above financial statements? (PIC 2.1)In the UK, financial statements are governed by UKGAAP (UK Generally Accepted Accounting Principles). They are also governed by the Companies Act What other accounting regulations and industry specific regulations does the company have to accord 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 protection act as they hold customer and staff information. Non compliance with this act can have severe financial and reputatio nal implications.They are also required to comply with any rules set out by HMRC when paying employees and also figure the tax liability of the business. The company does not have to comply with Sarbanes Oxley as this only mends 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 trunk 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.