Bdev Case Study

1887 Words4 Pages
bulb-icon

Recommended: Internal and external factors examples

Contents
Introduction 2
Impairment review 3
Financial Instruments 5
POST - EMPLOYEMENT BENEFITS 8
CONCLUSION 10
References 11

Introduction
Barratt Development PLC is one of the largest House builders in the United Kingdom listed as ‘BDEV’ on the London Stock exchange operating under Housebuilding Industry forming part of FTSE 100 Index.
BDEV is in the business of buying land, designing, and construction of houses and consequently selling the residential property. It also undertakes commercial development projects. It operates its business mainly under three brands which are as follows:
• Barratt Homes
• David Wilson Homes
• Barratt London
BDEV is a holding Company with several subsidiaries, associates, and joint ventures, held
Management reviews on a regular basis and no indicators of delaying or not recording observed.
We have selected Berkeley Group Plc (BKG), which is in similar industry and size of BDEV. BKG has similar impairment policy as BDEV and has not reported any Impairment loss during the year 2016 and 2015 similar to BDEV (Berkeley Group Co. Plc, 2016). This is mainly due to favorable internal and external factors resulting in higher recoverable amount. Financial Instruments
BDEV has disclosed the financial instruments under respective categories of financial assets and liabilities. The financial assets comprise of Derivative financial instruments, Cash and cash equivalent, Trade receivables and Available for sale investments. Financial liabilities includes Derivative financial instruments, Bank overdrafts, loans, and borrowings. The below graph indicates a huge increase in financial liabilities representing 91% an increase in land payable bearing an interest on contract secured by a legal charge (Barratt Development Plc, 2016).

The Group is exposed to a various financial risk which mainly includes liquidity risk, market risk, credit risk and cash flow risk. BDEV manages these risk by maintaining

Show More
Related

  • Bed Bath and Beyond's Business Risk

    838 Words  | 2 Pages

    Business risk in the case of BBBY is low if you only consider that the products they sell are produced by name brand companies, so any products needing repair could be sent directly to the name brand company. By passing BBBY and that BBBY has no control over the quality of the products they sell and that there are no significant switching costs. However, their degree of operating advantage is high at 2.93 (Exhibit 1) which would indicate high business risk. If management adds fixed operating costs to their business operations, without an increase in sales, the firm's profit declines and it becomes possible for total costs—variable plus fixed—to exceed sales and the firm to report a loss.

    Read More

  • Analysis Of Home Depot

    1039 Words  | 3 Pages

    For this analysis we have chosen Home Depot Incorporated a home improvement retailer. It primary clients are professional “professional remodelers, general contractors, repairmen, small business owners, and tradesmen” (Yahoo Finance, 2015). In addition Home Depot sub contracts installations to third parties (Yahoo Finance, 2015). Home Depot has 2,270 stores in the US and international stores located in Mexico and Canada (Yahoo Finance 2015).

    Read More

  • Old Chinatown of Los Angeles

    1422 Words  | 3 Pages

    ...arge of their needs and problems. The local property owners joined together to build a legal group, BID, to help them realize common goals for their properties and surrounding areas. BID, which stands for Business Improvement District, has goals that include creating a clean, safe and friendly environment, increasing visitors to the area and enhancing property values. This is to help secure their place as a huge tourism site in Los Angeles.

    Read More

  • B. V.: A Case Study

    867 Words  | 2 Pages

    B.V. is a 42 year old male patient admitted for severe angina chest pain. He previously had coronary artery bypass surgery a month ago. His incision site from the surgery was dry, intact with no inflammation present. He currently was not on any pain medications upon admission. He tested positive for hepatitis C and was homeless. He had a history of drug and alcohol abuse and left hip replacement. He is currently taking medications for hypertension and diabetes through Medicare. When getting report on the patient, the nurse stated that the patient kept asking for pain medications every hour but didn’t look like he was in pain. He was in a comfortable position in bed while laughing and watching television. The previous nurse thought the patient just wanted pain medication since he is previous drug addict. This situation reminded me of what I learned in Medsurge about trusting your patient if they

    Read More

  • Bega Cheese Case Study

    843 Words  | 2 Pages

    Inherent Risk 2 Debit ratio-the ratio of liabilities to assets indicates that their liabilities are increasing as a proportion of total assets. This is having an affect on the Times Interest Earned ratio, which is deteriorating rapidly. It also indicates their obligations are growing- another indication of potential cash flow problems and an inherent risk to a going concern issue that might influence the potential manipulation of the financial statements. This indicates an increased reliance on barrowed funds from creditors of financiers (e.g. banks).

    Read More

  • Importance Of Home Depot In China

    2551 Words  | 6 Pages

    China expects its urbanization rate to rise from 47.5% in 2010 to 51.5% by the end of 2015, according to the 12th Five-Year Plan (Xinhua News Agency, 2011). Clearly, the Chinese economy is booming and China is quickly urbanizing. Investment analyst Meyers (2011) stated that a home improvement company such as Home Depot is very sensitive to positive economic growth, especially the growth in housing and urbanization areas. A booming housing market such as the one in China should boost the business of Home Depot.

    Read More

  • Challenges and Missteps in Financial Risk Management

    926 Words  | 2 Pages

    Obviously, financial establishments can endure breathtaking misfortunes notwithstanding when their risk management is top notch. They are, all things considered, in the matter of going out on a limb. At the point when risk management fails, be that as it may, it is in one of the many fundamental ways, almost every one of them exemplified in the present emergency. In some cases, the issue lies with the information or measures that risk directors depend on. At times it identifies with how they recognize and impart the risks an organization is presented to. Financial risk management is difficult to get right in the best of times.

    Read More

  • Home Depot Essay

    1593 Words  | 4 Pages

    |Business |The Home Depot, Inc. is the world's largest home improvement retailer. The company incorporated in 1978 in |

    Read More

  • Rumasa Case Study

    1428 Words  | 3 Pages

    * The disproportionate risks assumed by the banks that were financing internally to the group with respect of the solvency of the group.

    Read More

  • Exhange Risk Faced by Multinational Corporations (MNCs)

    1553 Words  | 4 Pages

    Other types of exchange rate risks are translation risk and so-called hidden risk. The translation risk relates to cases where large multinational companies have subsidiaries in other countries. On the financial statement of the whole group, the company may have to translate the assets and liabilities from foreign accounts into the group statement. The translation will involve foreign exchange exposure. The term hidden risk evolves around the fact that all companies are subject to exchange rate risks, even if they don’t do business with companies using other currencies. A company that is buying supplies from a local manufacturer might be affected of fluctuating foreign exchange rates if the local manufacturer is doing business with overseas companies. If a manufacturer goes out of business, or experience heavy losses, it will affect all the companies it does business with. The co...

    Read More

  • Woolworths Stakeholder Analysis

    644 Words  | 2 Pages

    Financial risks include general ledger accounting, accounts receivable risk, accounts payable accounting risk, the risk of payroll, fixed assets accounting risk, cash management risk and cost accounting risks.

    Read More

  • Industrialised Building System Case Study

    546 Words  | 2 Pages

    As a consumers of Industrialised Building System (IBS), it should be to have a knowledgement and awareness about the Industrialise Building System(IBS). In Malaysia, the adoption of Industrialised building system is a clien...

    Read More

  • Aditya Birla Group Case Study

    2062 Words  | 5 Pages

    Adytia Birla Nuvo Limited (2011), The chairman’s letter to shareholders, viewed 26/1/2012, < http://www.adityabirlanuvo.com/investors/downloads/Nuvo_Annual_Report_2010-11.pdf >

    Read More

  • Why WP Should Apply ERM for Stakeholders

    923 Words  | 2 Pages

    Identify the potential risks which affect the company and manage these risks within its risk appetite;

    Read More

  • Users of Financial Instruments and Information

    821 Words  | 2 Pages

    Financial Instruments is an important topic in accounting and it a controversial topic in many areas. People in the world investor, lender, companies and anyone who uses financial information need reliable and relevant information to make decisions and financial instruments influence significant in their decision especially after financial crises.

    Read More

More about Bdev Case Study

Open Document