Assessment Assignment Example | Topics and Well Written Essays - 4000 words

Assessment - Assignment Example Industrial Chemicals, lastly, provide scientifically enrich and tested chemical products. All in all, the company makes use of the best talent in the sector to keep up with the innovative and unique features it provides. Synthomer also works in the chemical industry and deals mainly in production of polymers. Synthomer was established in 1952 with headquarters in Harlow, UK. Both companies keep innovation and technology at the heart of their operations and compete greatly in the global business market. Both the companies have followed International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) to prepare the financial reports. They use different accounting policies for the accounts, for instance, Synthomer calculates depreciation on straight line basis over the estimated useful life of an asset and Croda values tangible fixed assets at cost or valuation less depreciation. The accounting policies differ for each account but they remain compliant with the UK accounting standards and companies law 2006. For the purpose of this assignment, the financial statements of both the companies are extracted from their official website. The information important for the analysis is extracted and summarized in the excel sheet for clarity and ease of use. The analysis covers information from three recent years i.e. 2011, 2012 and 2013. Both the companies belong to the same industry and work in more or less the same product lines. For financial analysis, ratio analysis was used. Ratio analysis is done under 5 main heads namely Liquidity, Leverage, Coverage, Activity and Profitability. The analysis involves comprehensive assessment of the results measured. An analysis is made using personal knowledge and understanding about the issues. The report ends by concluding on the results of comparative analysis. Current