Looking at Ocado’s annual reports, it is possible to derive information on its internal finance which consists of items such as inventories, trade receivables, trade payables and other items. In order to further analyse these sources of finance, calculations have been composed.
Under inventories, consumables have not been taken into account due to the fact that they are defined as being goods which must be replaced regularly, whereas, regarding trade receivables, a deduction of £1.7m has been made due to a provision for impairment which relates to an amount owed by one of Ocado’s trade receivables’ late payment. This correlates with IAS 39 which states that if there is objective evidence that an impairment loss has occurred, then this loss
Under inventories, consumables have not been taken into account due to the fact that they are defined as being goods which must be replaced regularly, whereas, regarding trade receivables, a deduction of £1.7m has been made due to a provision for impairment which relates to an amount owed by one of Ocado’s trade receivables’ late payment. This correlates with IAS 39 which states that if there is objective evidence that an impairment loss has occurred, then this loss