Accounting report Essay Example | Topics and Well Written Essays - 1500 words

Accounting report - Essay Example ector’s report is a mandatory part of the financial statement that explains the business prospect of the company and detailed financial analysis and performance. The issues in the business of ITV are that of holding the broadcast audience which is their consumer and customer and that generates the revenue for the company. Another key issue is that of conversion of profit to cash during the year in which the company has struggle. Lastly, the broadcast and online revenues of the company have decreased compared to last year which is also a concern. The presentation of the report of BSkyB is more proper and the breakups are provided in a more explanatory format which give better judgment for a user of the financial statement. The directors report also covers a better area of the financial statement and uses graphs and charts to give better understanding to the user of the financial statement. The auditors have stated that they have carried on the audit of the company in light of the auditing standards as applicable in UK and Ireland and under their independent examination the financial statements are presented fairly and the Group financial statements are also prepared in line with the Financial Reporting Standards approved by the EU, the Companies Act 2006 and the other requirements of the applicable laws so as to provide the right type on guidance to the viewer of the financial statement. The report is dated two months later than that of the date of financial statements because the audit is carried out after the close of the year end of the company after which the auditors examine the financial data and provide their opinion of the fair and true presentation. In light of the companies Act, it is mandatory for a company to calculate and disclose the earnings per share in its annual report. The basic earnings per share of ITV in 2009 was 2.3p while the loss per share of last year 65.9p. This shows that the earnings per share for the year ended 2009 is higher