Critical evaluation of the international Accounting Standard and Essay

Critical evaluation of the international Accounting Standard and Financial Reporting Standard that applied on BRITIVC plc - Essay Example investors and lenders. This report specifically aims at the critical evaluation of the key financial information provided in the financial statements of Britvic Plc. Those key items are 1) Revenues, 2) Property, Plant and Equipment, 3) Earnings per share. These key items are evaluated in the light of their relevant accounting standards as to check whether these areas are consistent with providing the useful information to the lenders and investors. The following discussion and evaluation highlights these specific areas on separate basis so that each individual key accounting area can be judged regarding the achievement of IAS and IFRS objective (IFRS and IAS Summaries- English, 2011-2012). IAS 18 covers revenue recognition for the preparation of financial statements. The major criterion for recognizing the revenues is the transfer of risks and rewards between the parties to the sales contract. Seller transfers the risks associated with the selling item in response to a reward received from the buyer. When risks and rewards are transferred to the concerned parties, the revenues are deemed to be recognized by the selling entity. As far as the disclosure requirements of IAS 18 are concerned, minimal disclosure are required such as the total revenue generated during the current period along with comparative figure of the last year (BDO, n.d.). If the financial statements of Britvic Plc. are accounted for the year 2012, it can be clearly observed from the statement of comprehensive income that the company has generated the revenues of around  £1,256 million. In the previous year, the company had upward revenues of around  £1,290 million. From the perspective of disclosure requirements, the company has provided the appropriate disclosure requirements in the statement of comprehensive income (Annual Report Britvic Plc., 2012). Besides this disclosure requirement of IAS 18, certain other requirements relating