Case study
Edition 11: This case study helps students understand the process of setting, reporting and evaluating financial performance.
Financial statements and reporting
A Cadbury Schweppes case study
Page 1: Introduction
Limited companies (those owned by shareholders) are required by law to produce Financial Statements. These statements must be published and made available to shareholders as part of a company report. Cadbury Schweppes aims to produce clear financial statements that give a valuable insight into the company's strategy and performance.
Cadbury Schweppes is a major international company that manufactures, markets and sells confectionery and non-alcoholic beverages. With origins stretching back over 200 years, Cadbury Schweppes' brands are enjoyed today in almost every nation in the world. They include regional and local favourites such as Cadbury Dairy Milk, Trident, Halls, Dentyne, Bubblicious, Bassett's and Trebor in confectionery and Dr Pepper, Schweppes, Snapple and 7Up in beverages. The company employs around 50,000 people.
Cadbury Schweppes' Head Office accounts team collects the information required to create these statements from the company's accountants and financial teams around the world. The legal responsibility for producing financial statements that present an accurate picture of the company's performance over the period lies with the company's directors.
These statements must be checked by an external audit, where the company hires a firm of accountants to verify that it provides a true and fair record and complies with legal requirements. The exact statutory requirements for limited companies to prepare and publish accounts are laid down for limited companies through the Companies Act 1985, regulated by Companies House, and for publicly listed companies through European law, the Listings Rules, regulated by Financial Services Authority (FSA).
Some leading public companies, like Cadbury Schweppes, include reports to shareholders on
Financial statements and reporting
A Cadbury Schweppes case study
Page 1: Introduction
Limited companies (those owned by shareholders) are required by law to produce Financial Statements. These statements must be published and made available to shareholders as part of a company report. Cadbury Schweppes aims to produce clear financial statements that give a valuable insight into the company's strategy and performance.
Cadbury Schweppes is a major international company that manufactures, markets and sells confectionery and non-alcoholic beverages. With origins stretching back over 200 years, Cadbury Schweppes' brands are enjoyed today in almost every nation in the world. They include regional and local favourites such as Cadbury Dairy Milk, Trident, Halls, Dentyne, Bubblicious, Bassett's and Trebor in confectionery and Dr Pepper, Schweppes, Snapple and 7Up in beverages. The company employs around 50,000 people.
Cadbury Schweppes' Head Office accounts team collects the information required to create these statements from the company's accountants and financial teams around the world. The legal responsibility for producing financial statements that present an accurate picture of the company's performance over the period lies with the company's directors.
These statements must be checked by an external audit, where the company hires a firm of accountants to verify that it provides a true and fair record and complies with legal requirements. The exact statutory requirements for limited companies to prepare and publish accounts are laid down for limited companies through the Companies Act 1985, regulated by Companies House, and for publicly listed companies through European law, the Listings Rules, regulated by Financial Services Authority (FSA).
Some leading public companies, like Cadbury Schweppes, include reports to shareholders on