Assignment Brief (RQF)

Higher National Diploma in Business

Past Sugar Paper Ltd. business partnerships include Target and J.Crew, and they currently have a pop-up shop running throughout the holidays in Harrods and Self-ridges, two of London’s premier luxury shopping destinations. “Our mission is to continue capturing life noteworthy moments so they, can be tucked away and saved forever, “says Chelsea Zhukov. 

The brand is preppy and polished to the core, yet without pretense. The products range from stately letter-pressed monogrammed note cards to a pastel pink and gold polka dot phone case to a brass “snail mail” letter opener in the shape of a snail.
“If sugar, spice and everything nice were the motto of a stationery company, I’m pretty sure it would look like Sugar Paper Ltd,” says Chelsea Zhukov,co-founder of Sugar Paper, with a big grin.

With no outside funding and an effective financial reporting systems firmly in place, Sugar Paper Ltd. is fully compliant in disclosing financial results and related information to management and external stakeholders which include regulatory bodies and, more recently, potential investors. 


 You are required to:

  1. Analyse the purpose of financial reporting for meeting Sugar Paper Ltd organisational objectives, development and growth.
  2. Analyse the context of financial reporting including regulatory frameworks and governance of financial reporting.
  3. Assess how the context and purpose of financial reporting meets Sugar Paper’s stakeholder needs and expectations
  4. Critically analyse the different regulatory frameworks and governance of financial reporting specific to Sugar Paper Ltd.

 The following are the financial statement of Sugar Paper Ltd.

With no outside funding, Chelsea Zhukov and co-founders have grown profits significantly compared to previous years. However, of late, the co-founders are looking at potential investors


In your role as Junior Financial Analyst, consider the financial statement and accounting ratio’s of Sugar Paper Ltd from the viewpoint of a potential investor

Interpret the Statements of Profit and Loss and Statements of Financial Position of Sugar Paper Ltd

  1. Calculate and present financial ratios of Sugar Paper for organisational performance and investment
  2. Interpret your results of financial ratios of performance and financial status of Sugar Paper in order to inform decision-making on further company investment . Using appropriate theories and financial ratio models, evaluate the financial health of Sugar Paper and make recommendations from the viewpoint of potential investors.

The business was born when college pals Chelsea Zhukov, Jamie Backgrounder Joe Soap started designing custom letterpress cards as a hobby after graduation. Over time, their designs became increasingly popular and the co-founders opened their first retail shop neighboring St John Wood, London.


Explain the benefits of International Accounting Standards (IAS) and International Financial Reporting Standards (IFR) Evaluate the models of financial reporting and auditing.

  1. Critically evaluate financial reporting and auditing through the coherent application of Equity and Legitimacy theory to Sugar Paper Ltd. Furthermore, you are to critically evaluate financial reporting and auditing through the application of financial models to support judgments and conclusions.

International Financial Reporting Standards are standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB) to provide a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. They are a consequence of growing international shareholding and trade and are particularly important for companies like Sugar Paper Ltd. that have business dealings in several countries.

Sugar Paper Ltd presently promote their designs in 15 shops distributed across the USA, India, UK and Europe.

 You are required to research and produce a business report in which you clearly address the following:

  1. Evaluate the differences and importance of financial reporting of Sugar Paper Ltd. operating in 15 shops distributed across the USA, India, UK and Europe.
  2. Critically evaluate the factors that influence international differences in financial reporting.
  3. Critically evaluate the application of IFRS to Sugar Paper Ltd. operating in USA, India, UK and Europe.and differences in financial reporting based on models and theories.

Furthermore, Using appropriate theories and models suggest how Sugar Paper Ltd. can    effectively respond to existing and potential financial problems