Commercial Awareness and Business Decision Making Skills

Chapter 14: An Introduction to Investments

Parent company vs. group

If you were to pick up the glossy annual financial statements for a large listed company and turn to the balance sheet the chances are that you will see something similar to that in Box 14.1.

Box 14.1: Thorntons plc (2005) Balance sheet

Group
As at 25 June 2005

Group
As at 26 June 2004
(as restated)

Group
As at 25 June 2005

Group
As at 26 June 2004
(as restated)

Notes

'000

'000

'000

'000

Fixed assets

Tangible assets

14

7,9544

80329

79,330

80,102

Investment in subsidiaries

15

18

18

79,544

80,329

79,348

80,120

Current assets

Stocks

16

17,958

18,912

17,947

18,904

Debtors

17

13,592

12,818

21,888

14,108

Cash at bank and in hand

874

1,599

580

848

32,424

33,329

40,415

33,860

Creditors: amounts falling due within one year

18

(52,902)

(48,788)

(62,789)

(50,950)

Net current liabilities

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