1.18 Mohsin, a bank manager, is looking at an application for a loan from Boxer Burstall Limited, a local company. The company has included a copy of its most recent annual accounts which are for the year ending 31 December 2011. The accounts show that a modest profit has been made in the year. It is now March 2013.

Required:

i. What type of information will Mohsin be looking for from the annual accounts to help him in making a decision on whether or not to lend the money?

ii. How relevant is the accounting information which the company has provided to Mohsin’s decision?

iii. Is Mohsin entitled to request any further information?