Financial and Mangement Accounting (Cable and Wireless Plc)

Cable &amp. Wireless Plc is a company with operations scattered around the world. It has maintained a good profitability performance during 2008 despite the fact that revenue in 2008 declined as compared 2007. The emphasis was to economize the cost of sales. Liquidity is a definite problem with the company as is with other companies as well. Efficiency on inventory turnover has covered up lot of operational weaknesses of the company in 2008. The company is highly geared and the equity holders are presented with a stage to have benefits of trading in equity. Investors are ever willing to invest as it clear from it price earning ratio. The company is following strictly the provisions IAS 14 in maintaining its accounting policy of segment reporting. The information is exhaustive under primary segments that are business wise. and adequate in secondary segments that are created on the basis geographical areas covered by the company in its business operations.