You are provided with the following information about a FTSE 100 company relating to the year ending 31 January 2010.
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a) The International Accounting Standards Board (IASB) Framework for the preparation and presentation of financial statements and IAS 1 (revised) Presentation of financial statements provide guidance on the presentation of published financial statements. According to IAS 1 what is the purpose of published financial statements?
b) Using the information provided in the extract from the statement of financial position above, calculate shareholders' equity.
c) Using the information provided calculate the company's market value (market capitalisation) at 31 January 2010.
d) IAS 1 (revised) Presentation of financial statements requires a company to produce on a regular basis detailed financial statements, including a statement of financial position. What is the purpose of the statement of financial position? Briefly explain why the shareholder's equity shown in the statement of financial position (and calculated by you in part b above) differs to the company's market value (calculated in part c above).