PART A:
Question 1:
Thorntons is a British multi-channel confectionery retailer, which is considered as the leading premium chocolate brand in the UK, with shoppers purchase exceeding £300 millions in 2014. The company operates through two business segments, namely retail and fast moving consumer goods. The main activities of Thorntons include manufacturing, retailing and distribution of high quality chocolate, toffee, and fudge with luxury and special packages. Apart from approximately 400 stores across the UK and Ireland, Thorntons also expands its business globally through online selling by providing international delivery.
Question 2:
As Thorntons’s annual report (2014, p.64), the revenue is recognized as following conditions:
• Sales …show more content…
• Auditors are expected to declare their independence in order to ensure that their opinions are unbiased, honest and not influenced by the personal relationships with the entity. Therefore, auditors’ opinions and judgements will be more accurate, reliable and objective. (Financial Reporting Council 2011, p.16-29).
• Stakeholders use financial statements of an entity to evaluate the business situation to make decisions. However, the financial statements are prepared by the accountants – the internal party, which means they can easily falsify the data for several purposes. Consequently, stakeholders expect a third party to provide assurance about the accuracy of the information provided. Thus, the objectives of having external party for auditing are to make sure that the financial statements are free from material errors, misstatement and whether they follow the relevant accounting standards (Birt et al. 2012, p.49). https://www.frc.org.uk/Our-Work/Publications/APB/ES-1-(Revised)-Integrity,-objectivity-and-independ.pdf (NOTE P56 …show more content…
In 2013/2014, gas and electricity usage reduced more than 10% (p22).
• Water Usage: In 2011, Thortons signed a Federation House Commitment, aims to reduce water usage 20% by 2020. Their water usage in 2014 decreased 18% since 2013(p23).
• Recycling: Most materials have a minimum recycle ability of 50%, whereas, all recyclable materials are clearly marked. Thortons minimizes the amount of packaging used and maximizes recyclable packaging.
• Waste: The target is to drive zero waste to landfill (p23). That means Thortons determines to reuse all resources, leaving no resource to finish its life cycle. The company with other recycling champions in UK partnered with professional waste management companies. They also encourage employees. For example: introducing dry mixed recycling to the canteen.
• Cocoa: Thortons joined World Cocoa Foundation which encourages sustainable practices amongst farms and improving conditions of cocoa farmers. The company’s cocoa suppliers are not only committed to ensuring the quality of future cocoa supplies but also run programmes to support farmers and families such as improving health and wellbeing
Question 1:
Thorntons is a British multi-channel confectionery retailer, which is considered as the leading premium chocolate brand in the UK, with shoppers purchase exceeding £300 millions in 2014. The company operates through two business segments, namely retail and fast moving consumer goods. The main activities of Thorntons include manufacturing, retailing and distribution of high quality chocolate, toffee, and fudge with luxury and special packages. Apart from approximately 400 stores across the UK and Ireland, Thorntons also expands its business globally through online selling by providing international delivery.
Question 2:
As Thorntons’s annual report (2014, p.64), the revenue is recognized as following conditions:
• Sales …show more content…
• Auditors are expected to declare their independence in order to ensure that their opinions are unbiased, honest and not influenced by the personal relationships with the entity. Therefore, auditors’ opinions and judgements will be more accurate, reliable and objective. (Financial Reporting Council 2011, p.16-29).
• Stakeholders use financial statements of an entity to evaluate the business situation to make decisions. However, the financial statements are prepared by the accountants – the internal party, which means they can easily falsify the data for several purposes. Consequently, stakeholders expect a third party to provide assurance about the accuracy of the information provided. Thus, the objectives of having external party for auditing are to make sure that the financial statements are free from material errors, misstatement and whether they follow the relevant accounting standards (Birt et al. 2012, p.49). https://www.frc.org.uk/Our-Work/Publications/APB/ES-1-(Revised)-Integrity,-objectivity-and-independ.pdf (NOTE P56 …show more content…
In 2013/2014, gas and electricity usage reduced more than 10% (p22).
• Water Usage: In 2011, Thortons signed a Federation House Commitment, aims to reduce water usage 20% by 2020. Their water usage in 2014 decreased 18% since 2013(p23).
• Recycling: Most materials have a minimum recycle ability of 50%, whereas, all recyclable materials are clearly marked. Thortons minimizes the amount of packaging used and maximizes recyclable packaging.
• Waste: The target is to drive zero waste to landfill (p23). That means Thortons determines to reuse all resources, leaving no resource to finish its life cycle. The company with other recycling champions in UK partnered with professional waste management companies. They also encourage employees. For example: introducing dry mixed recycling to the canteen.
• Cocoa: Thortons joined World Cocoa Foundation which encourages sustainable practices amongst farms and improving conditions of cocoa farmers. The company’s cocoa suppliers are not only committed to ensuring the quality of future cocoa supplies but also run programmes to support farmers and families such as improving health and wellbeing