SCANNING THE ANNUAL REPORT

ACCOUNTING INFORMATION SYSTEMS

Try and find answers to the following questions from the annual report of Hindustan Unilever Ltd.

1. What is HUL’s business? Who are its major suppliers and customers? How many employees does HUL have? Why is this information important?

2. Read the “Contents” page. Mark the items that relate to financial statements as “FS” and the rest as “NFS”.

3. Who is responsible for preparing and presenting the financial statements? Where is this information available?

4. How does HUL define the reporting entity? Where is this information available?

5. List HUL’s asset, liability and equity items.

6. Verify that the financial statements satisfy the accounting equation.

7. Who audited the financial statements? Is it a part of any Big Four firm? If yes, which one?

8. Who appoints the auditors? Where is this information available?

9. To whom is the auditors’ report addressed? Why?

10. What are the matters on which the auditors report?

11. What is the auditors’ opinion on the financial statements?

12. Does the auditors’ report contain any recommendation to present and potential investors?

13. How much was the auditors’ remuneration?

14. Did the auditors provided any non-audit service to HUL? If yes, how much was the payment for these services? Where is this information available? Why is this information important?

15. What information does HUL provide in items that you have marked as “NFS”? Is the information useful? How, who is the intended audience? Will it be able to understand the information?

16. When was the annual general meeting to be held? What were the items to be discussed?
© Narayanaswamy R., (2011), Financial Accounting – A Managerial Perspective, Fourth Edition, PHI Learning Private Limited, New Delhi, p. 59.
INCOME STATEMENT

Try and find answers to