1.The financial report is disseminated to the people who are interested in the entity like employees, shareholders, analysts, suppliers and lenders. It includes the information regarding the financial position as well as the financial performances of the entity. Through the financial report the directors of the entity advice the shareholders regarding the business performances and how the directors have executed their responsibilities. To be more specific, potential investors and present investors are the main audience for the annual reports. Apart from them customers, leaders and suppliers are also considered as targeted audience (Sedlá?ek 2016).
2.The above mentioned people require information included in annual reports for the below mentioned reasons –
3.Various financial information provided under the annual report of Woolworths Ltd for the year ended 2018 includes the financial report that includes consolidated profit or loss statement, consolidated other comprehensive income statement, consolidated changes in equity statement, consolidated financial statement and consolidated cash flow statement. Contents of financial statements are as follows –
From the financial statement of the company it can be identified that sales, gross profit, EBIT and net profit of the company has been increased in 2018 as compared to the previous year. Further, it is identified that the borrowings of the company has been repaid and equity investment has been increased during the period. Moreover, the cash equivalent of the company at the closing of the year has been increased as compared to last year. Hence, it can be stated that the business activities are indicating success during the year (Caetano et al. 2017).
4.From the financial report of Woolworths for the year ended 2018 it can be identified that the profit and loss statement shown profit amounting to $ 1,795 million. Profit of the company has been increased by 12.39% as compared to previous year. This increase has been contributed by increase in operating revenue by 3.51% as compared to previous year. Further, the EBIT of the company has been enhanced by 11.09% in 2018 (Woolworthsgroup.com.au 2018).
5.For the upcoming year the business is recommended to –
Further, in 2019 the company expects sustainable growth for the shareholders through delivering good services, prices, choices, convenience and quality to the customers. It also expects to provide support and opportunities to the team members that will also have a positive impact on the communities (Weygandt, Kimmel and Kieso 2015).
6.In 2017 the company projected that it will continue investing in BIG W. In 2018 it has been identified that BIG W progressed in its turnaround through focussing in customers, addressing culture and engagement and fixing basics with the new team purpose. Further, it was expected that the share price will be equal to or more than $ 25.39 (Woolworthsgroup.com.au 2018). It was found that the share price for the year ended 2018 was $ 30.52 per share. Hence, it can be stated that the projections made by the company in previous year that is in 2017 were accurate. For investing in BIG W the short term borrowings of the company have been increased from $ 254 million to $ 604 million and long term borrowings have been increased from $ 2,777 million to $ 2,199 million. Further, the share price increase also increased the EPS of the company from 119.4 cents to 132.6 cents (Woolworthsgroup.com.au 2018).
7.The company has committed to have food waste division for 100% of the Woolworths Supermarkets by end of the year 2018. Further, the company committed to phase out single use plastic bags from the checkouts and from online shopping by end of the year 2018. It will remove million of bags from the circulation (Woolworthsgroup.com.au 2018).
References
Caetano, A., Pereira, A.C., Severino Peters, M.R. and Santos, F.D.A., 2017. Analysy Of The Financial Statements: A Performance Valuation Of The Brazilian Companies By The Private Equity Based On The Information Disclosured. Revista Eniac Pesquisa, 6(2), Pp.271-285.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Nobes, C., 2014. International classification of financial reporting. Routledge.
Sedlá?ek, J., 2016. Financial Statements in the Financial Decision Making. European Financial Systems 2016, p.678.
Weygandt, J.J., Kimmel, P.D. and Kieso, D.E., 2015. Financial & managerial accounting. John Wiley & Sons.
Woolworthsgroup.com.au. 2018. [online] Available at: https://www.woolworthsgroup.com.au/icms_docs/188795_annual-report-2017.pdf [Accessed 28 Nov. 2018].
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