D1:Justify the application of accounting
conventions and regulations to ensure that
the financial statements meet their users'
needs.
In this D1 I will be creating a range of posters
for each stakeholder that Mark & Spencer has
and will be describing their interests in
financial accounts, identifying which
accounting concepts help the user meet
those needs and indicating how those
concepts impact on it.
, Employees
• Financial accounting is when a company
prepares financial statements to show their
financial state to investors, customers or
suppliers.
• One of Marks & Spencer's important
stakeholders are their employees because
they keep in touch with customers.
Furthermore, employees use the company's
balance sheet so they can decide if they
should buy more or hold their current
investment level.
• The Accrual concept will help the
employees meet their needs when looking
at the balance sheet because it will help
them recognise profits and losses and
wherever they should invest their money or
not. This could have a negative impact on
the user's need because if other
stakeholders are not investing as much in
the business it will have a bad impact on
the wages of the employees which will
result in them not having money to buy
more shares.
conventions and regulations to ensure that
the financial statements meet their users'
needs.
In this D1 I will be creating a range of posters
for each stakeholder that Mark & Spencer has
and will be describing their interests in
financial accounts, identifying which
accounting concepts help the user meet
those needs and indicating how those
concepts impact on it.
, Employees
• Financial accounting is when a company
prepares financial statements to show their
financial state to investors, customers or
suppliers.
• One of Marks & Spencer's important
stakeholders are their employees because
they keep in touch with customers.
Furthermore, employees use the company's
balance sheet so they can decide if they
should buy more or hold their current
investment level.
• The Accrual concept will help the
employees meet their needs when looking
at the balance sheet because it will help
them recognise profits and losses and
wherever they should invest their money or
not. This could have a negative impact on
the user's need because if other
stakeholders are not investing as much in
the business it will have a bad impact on
the wages of the employees which will
result in them not having money to buy
more shares.
