The financial statements of M&S (GBR) are presented in Appendix A. The company’s complete annual report, including the notes to the financial statements, is available online.

Instructions Refer to M&S’s financial statements and the accompanying notes to answer the following questions.

(a) What were M&S’s sales for 2013?

(b) What was the percentage of increase or decrease in M&S’s sales from 2012 to 2013?

(c) In its notes to the financial statements, what criteria does M&S use to recognize revenue?

(d) How does M&S account for discounts and loyalty schemes? Does the accounting conform to accrual-accounting concepts? Explain.

Data From Appendix A 

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APPENDIX A Specimen Financial Statements: Marks and Spencer Group plc Financial statements Consolidated income statement Revenue Operating profit Finance income Finance costs Profit before tax Income tax expense Profit for the year Attributable to: Equity shareholders of the Company Non-controlling interests Basic earnings per share Diluted earnings per share 52 weeks ended 30 March 2013 52 weeks ended 31 March 2012 Notes 2,3 m 10,026.8 m 9,934.3 2,3 756.0 746.5 6 26.5 (218.2) 48.3 (136.8) 47 564.3 658.0 (106.3) (168.4) 458.0 489.6 466.7 513.1 (8.7) (23.5) 458.0 489.6 coco 29.2p 32.5P 8 29.0p 32.2p