Accounting

MagnumPLCis based in Riyadh and manufactures plastic products for use in the drinks industry. Its main business pertains to the export market.   The head of strategy, Dan Malone, is responsible for company expansion and actively targets successful companies with a view to acquisition.Dan is currently in negotiation with Aliments Products, a successful business that designs and manufactures plastic for use in the agrifood sector. The ‘Aliments’brandwas established on 1 January 2016 and has already established itself in the marketplace.The attached appendix presents the Statement of Profit or Loss and Other Comprehensive Income and the Statement of Financial Position for the years ended 31 December 2016 and 2017.   In January 2018,Magnum PLC appointed a new Head of Accounting, Laura. Laura believes that the operational efficiency and profitability of the business could be improved if a budgetary control system was introduced. She has agreed to present a case for the introduction of such a budgetary system.