international financial reporting problem marks and spencer plc ifrs2 7 the financia 1561970

International Financial Reporting Problem Marks and Spencer plc

IFRS2-7 The financial statements of Marks and Spencer plc (M&S) are available at the book’s companion website or can be accessed at http://annualreport.marksandspencer.com/_assets/downloads/Marksand- Spencer-Annual-report-and-financial-statements-2012.pdf.

Instructions

Refer to M&S’s financial statements and the accompanying notes to answer the following questions.

(a) Using the notes to the consolidated financial statements, determine M&S’s revenue recognition policies.

(b) Give two examples of where historical cost information is reported in M&S’s financial statements and related notes. Give two examples of the use of fair value information reported in either the financial statements or related notes.

(c) How can we determine that the accounting principles used by M&S are prepared on a basis consistent with those of last year?

(d) What is M&S’s accounting policy related to refunds and loyalty schemes? Why does M&S include the accounting for refunds and loyalty schemes in its critical accounting estimates and judgments?