Craigielaw plc

Making use of the Report and Accounts of Craigielaw plc, answer the following questions. (Page numbers
refer to the Report and Accounts of Craigielaw.)

Note first that the Financial Statements of Craigielaw represent the position and performance of the group of
companies owned and controlled by Craigielaw plc. These accounting statements are known as ‘group’ or
‘consolidated’ financial statements. The columns headed ‘Group’ in the statement of financial position
(balance sheet) on page 25 are the figures of main interest. In full published accounts, there may also be
columns headed ‘Parent’, presented for legal reasons. Information about the parent company alone is less
interesting than a view of the entity as a whole and so has been omitted in Craigielaw.

D7.1. List page numbers and a brief description of the evidence in the Report and Accounts that indicates
that part of the document has been the subject of regulation.

D7.2. What differences do you see between the audited and the unaudited parts of the Report and
Accounts?

D7.4. What has been the trend of profits in Craigielaw over the last five years? (See page 21)

D7.5. What are the main reasons for the difference between operating profit and net cash inflow from
operating activities (page 27)? What comments are made about the company’s cash flow position in
the strategic report (page 8 in particular)?
D7.6. Have the equity holders’ funds increased or decreased during the year (page 26)? Can you relate this
to the reported profit of the year? You will find further clues on page 25 in the ‘Statement of other
comprehensive income’ and the ‘Statement of changes in equity’.

D7.7. Read the accounting policy statement on page 28. How is this information useful to a reader of the
financial statements?

D7.8. Look for evidence of non-controlling (minority) interests and of associated companies in the income
statement (profit and loss account) (page 24) and the statement of financial position (balance sheet)
(page 25). How important do these items appear to be?

D7.9. Read the list of ‘Principal Subsidiary and Associated Undertakings’ on page 36. Find one example of
a wholly owned subsidiary, one example of a partly owned subsidiary and one example of an
associated company.