TalkTalk Telecom Group PLC Coursework Example | Topics and Well Written Essays - 1500 words

TalkTalk Telecom Group PLC - Coursework Example TalkTalk is a company that provides telecommunications, internet, and pay-television services and the headquarters of the company are established in London, United Kingdom (TalkTalkGroup.com). Initially the company was only a fixed landline provider but now the company also provides mobile phone, home phone and broadband services. The company is listed on the London Stock Exchange (TalkTalkGroup.com). Since the company is incorporated in the United Kingdom therefore the company is bound to fulfill the requirements of the regulations of the UK for the preparation of its annual report (TalkTalkGroup.com). Every company in the UK is required to follow the International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs) developed by the International Accounting Standards Board (IASB). Therefore, TalkTalk is also required to prepare its financial statements in accordance with the standards mentioned above. For each head in the financial statements, a specific accounting treatment has been prescribed in the IASs and IFRSs. There are a number of standards that deal with different heads in the financial statements. The financial statements of a company include; statement of comprehensive income, statement of financial position, statement of cash flows, statement of changes in equity and the notes to the financial statements. These five documents constitute the financial statements of a company. The statement of comprehensive income provides an extensive view of the revenue earned by the company, the cost incurred by the company throughout the financial year, the profits or loss made by the company. The accounting standards provide certain accounting treatments that are required to be followed for the preparation of the statement of comprehensive income. One of the most important requirements is the treatment regarding recognition of revenue. IAS 18 – Revenue provides the required accounting