The financial statements of Marks and Spencer plc (M&S) are available at the book’s companion website or can be accessed at http:/corporate.marksandspencer.com/ documents/publications/2010/Annual_Report_2010.
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 2010?
(b) What was the percentage of increase or decrease in M&S’s sales from 2009 to
2010? From 2008 to 2009? From 2008 to 2010?
(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.