You can directly access the annual report on the below link and download 2020 annual report in PDF format: Philips Annual Report 2020 | Philips Results

Instructions

Use the 2020 Annual report of Philips to answer the following questions:

1. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Discuss at least two types of stakeholders and give examples from the Philips annual report to justify your answer. Also explain the reason of their interest in the financial statements.

[Marks (Words): 10(300)]

2. As you learned in Unit 1, Session 3, the major environmental factors impacting on an organization can be grouped under four headings: political/legal, economic, social/demographic and technological (PEST analysis). Giving examples from the annual report, discuss the impact of each of the elements in the PEST analysis on Philips.

[Marks (Words): 10(300)]

3. In which category of users or stakeholders do you think the following fit from the Philips Annual report 2020?
   1. Frans Van Houten
   2. Audit & Risk committee
   3. Ernts & Young LLP

[Marks (Words): 10(50)]

4. IAS 16 Property, plant and equipment identifies and describes two different models of accounting for tangible non-current assets. Discuss the importance of these two models and Identify the depreciation methods used by Philips.

[Marks (Words): 10(100)]

5. In preparing financial statements in accordance with IFRS, there are certain accounting policies that may require a judgment or estimation in their application. Give examples of Philips estimates and assumptions reported in consolidated financial statements.

[Marks (Words): 10(100)]

6. It is important to classify the expenditure separately in the field of accounting because of their nature of expenditure as revenue and capital expenditures. Identify the difference between revenue expenditure and capital expenditure and provide the example from Annual report of Philips for capital expenditure.

[Marks (Words): 10(100)]

7. The going concern concept is a fundamental principle of accounting. Explain why the going concern basis is important in understanding Philips financial statement; Support your answer with evidence from Philips annual report.

[Marks (Words): 10(100)]

8. There are different basis approaches to valuing inventory that are allowed by GAAP, explain the principals methods of valuation required by IAS2 inventories, provide some evidence from annual report of Philips.

[Marks (Words): 10(100)]

9. Recovery of receivables are not always definite, sometimes debtors are unable to pay in time. Explain the concept of allowances for irrecoverable receivable and analyze the Philips allowances for receivables information given in annual report.

[Marks (Words): 10(100)]

10. Revenue recognition is a generally accepted accounting principle (GAAP) that determines the specific conditions in which revenue is recognized or accounted for. Classify the revenue recognition method(s) used by Philips as discussed in annual report. Explain the rationale underlying the appropriateness of methods used by Philips.

[Marks (Words): 10(100)]

[Total Marks = 100]

In your answer, you should explain each point or inquire separately. Use the following headings (below) to make up the different sections of your work:

Cover	The PT3 form (available on LMS)
Contents	Title and contents page
TMA	Financial Reporting on the Internet (Case study: Philips)
References	Recorded according to the Harvard style - Available on LMS