A&F dissertation section 3

3.         Financial Statement Analysis

 

This section should offer an analysis of the company’s financial performance over the last five years.  Crucially it should make use of your knowledge of the company’s strategic direction, its industry position and the broad environment.  This section should include:

 

a)     A detailed analysis of the financial statements, making comparisons with competitor(s). 

You have done very well for part a.

b)     Identification of any new accounting policies/treatments, which may impact significantly on future profitability.

c)     Identification of problems of comparison caused by particular accounting policies/treatments.

IFRS 15 Revenue from Contracts with Customers, effective on or after 1 January 2018 and applicable to Barratt Developments Plc from 1 July 2018. Barratt has applied IFRS 15 using the cumulative effect method, in respect of the adoption of IFRS 15, revenue is adjusted and reduced by £12.7m.

This is an example what I did for part b and c, only for revenue. I did write down the new accounting policy, but I don’t know how to analyse the impact of future profitability and what the problems are related to new accounting policies or treatments. So, I think you can help me to finish them.

Reference: https://www.investegate.co.uk/barratt-developments/rns/final-results/201909040700051051L/

But most of them (not only the revenue) need to analyse new accounting policies/treatments (if they have).

So you need to write a short paragraph for every account of them