A financial report aims to provide valuable information to firm stakeholders to assist them in making decisions. This paper seeks to look at the significant differences in how Ark restaurants Corp and A&W food services present their annual financial results. A comparison of the two companies' financial results would expose the significant discrepancies and any conclusions that can be made from the reports. The report would also look at the organization's key priorities, problems, and strategies in their discussion of the results. An examination of the format and arrangement of each of the company's reports would aid in the presentation and clarification of the data.
While there are no significant gaps in how Ark restaurants Corp and A&W food services deliver their financial results, the financial reports vary in terms of the major sales segments. In the income statement, Ark restaurants Corp lists sales in terms of company-operated restaurants and franchised restaurants. A&W food services, on the other hand, publishes segment profits for each of its retail stores in a particular area. As a result, A&W food services places a greater emphasis on segment reporting than Ark restaurants Corp, which records franchise sales. Both businesses, in my opinion, present their financial data and details in a straightforward manner that allows users to draw inferences about the company's results.
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Compared to Ark Restaurants Corp, I find A&W food services' financial results to be more appealing and understandable to the reader. Unlike Ark restaurants Corp, the A&W food services financial report starts with a rundown of the firm's financial results over the previous years, giving the reader an overview of the report. Furthermore, both statements offer a concise description of the significant things in the financial reports in the form of footnotes and management discussion and review, which helps in a comprehensive understanding of the financial reports.
Both entities stress different priorities, strategies, and obstacles in their discussions of the financial report. Ark Restaurants Corp intends to use derivative contracts to protect against market-driven shifts in actual liabilities. The company would be able to protect against adverse changes in its costs by entering into derivative contracts. To achieve long-term sustainability among consumers, the organization also wants to improve its sustainable practices and social responsibility. Plans to incorporate energy-efficient equipment and energy usage management and sustainable procurement practices in key markets are among them. Possible changes in weather conditions, water supply, and environment in an unpredictable manner, which could impact the firm's operations in its major operational markets, are among the key challenges that Ark restaurants Corp lists in the financial reports. Market fluctuations will also affect the value of its liabilities in the future.
A&W food services, on the other hand, intends to increase the use of e-commerce to offer outstanding customer support in all countries. Increased e-commerce use would improve digital/physical convergence, allowing the company to serve more consumers worldwide. A&W food services, on the other hand, emphasize numerous obstacles in the financial report. These difficulties stem from contingency liabilities arising from ongoing government investments and shareholder litigation, all of which may have a negative impact on the firm's financial results. The organization also predicts that expenses associated with demands for information in conjunction with government investments and protection against shareholder litigation will continue to be incurred. These contingencies have an effect on the company's ability to prepare forward-looking financial statements in order to meet the needs of various stakeholders. Due to its operations in various countries, the organization also faces difficulties related to exchange rate fluctuations. Other difficulties that the company faces include adverse economic and financial market shifts in some of the company's major markets.
The structure and organization of Ark Restaurants Corp and A&W food services financial reports, in my opinion, improves the details provided. Both financial reports offer a concise overview of the facts contained in the reports, which helps with comprehension. The data is organized and presented in a logical order, with the most recent years being represented first. This improves the reader's understanding of the company's financial data and makes comparisons easier. On the other hand, the financial reports are overly complex, making them difficult to comprehend for those with little to no experience with financial reporting. Understanding the critical details in financial information can be too complicated for a passive consumer, preventing successful decision-making.
To sum up, the paper looked at the significant discrepancies between Ark restaurants Corp and A&W food services financial results. The differences in the two firms' financial results relate to how they disclose their earnings to the review. A&W food services report revenue by market, while Ark restaurants Corp reports income by Franchise Company. Both reports, on the other hand, are well-organized and easy to comprehend. The financial results often clearly highlight each company's strategies, priorities, and challenges, allowing readers to understand better and make better decisions.
References
A&W food services of Canada Inc . (2019). AnnualReports.com. https://www.annualreports.com/Company/aw-food-services-of-canada-inc
Ark Restaurants Corp . (2019). AnnualReports.com. https://www.annualreports.com/Company/ark-restaurants-corp
