Four Weekly diaries of events & a financial report about ratio analysis
Paper, Order, or Assignment Requirements
Do not plagiarise, never just copy and paste,the paper will be check by turnitin. The files will be upload later, please do read the instructions. Part A is to write 4 weekly diaries of events start on on 12th February 15.You can find the sample in the Appendix One. Part 2 is a report about ratio analysis.You can also find the structure of the essay in the file.
Financial Management Accounting
Unit Coordinator: Dr. Syamarlah Rasaratnam
Assessment 1 (50%)
Part A Financial Accounting – 25%
Part B Management Accounting – 25%
Task 1: Financial Analysis
This is individual assessment. You are expected to establish a weekly diary of eventsabout a companywhich you believe will have significant impact on UK and World business activities.
Note: You need to choose a company from the London Stock Exchange (LSE).
Sample diary pages appear as Appendix 1, but it would be permissible to use any sensible format. The window during which events should be recorded starts on 12th February 15 and finishes four weeks later on 5th March 15. As a rough guide, each student should include about 4-5 events, arranged in date order.
The criteria for significant events are not defined, but you should be concentrating on those items which are likely to have an impact on either market position, or the Statement of Comprehensive Income, or the Statement of Financial Position. A short commentary about the reasons for, or likely implications of the news item should be added (as demonstrated in the appendix). The source of each diary entry should be identified. Provide evidence i.e. copies of the source with publication dates (i.e screen shots).
You should note that only information found in the source report need be included in the diary – further research is not necessary.
Diaries will be marked on the basis of:
- A good number of relevant entries 4-5 events
- A diverse range of events from the selected company
- Quality and succinctness of commentaries on the events
- Avoidance of the use of “headlines” in the News Item column. Press headlines are usually too short and too glib. Also, they tend to make pathetic puns i.e. “Ryanair’s profits soar”,
- Capture share movements during the 4 weeks.
Task 2 (Ratio analysis)
You are required to write a financial report, ON A STRICTLY INDIVIDUAL BASIS. This means no copying from other students or other published sources. Your report should use the relevant diary entries, in conjunction with additional research, to discuss the history, current developments and future prospects for the focus company. Company web sites, historical databases and press comments will be useful sources of background information. Hint: Use Ratio Analysis (Liquidity, Profitability, Efficiency, Financing and Investors) to demonstrate likely changes in profitability or asset/liability management over the last few years. In particular, the way in which most recent events affect the Income Statement and/or the Statement of Financial Position should be explained or speculated on.
You should assume you are a consultant sending a report to your Managing Director.
The individual report should include the following sections:
| 1 | Introduction | Abstract of the report |
| 2 | Background | What are the significant historical developments over the last 2 or more (if necessary) years? You should summarise any long lists of history which you may find on company websites, rather than reproducing it directly. The most recent history is likely to assist your interpretation of the ratio analysis. |
| 3 | Table of Absolutes & Ratio Analysis | You should tabulate a comparison of the principle financial parameters of the company (absolutes) for the two years shown in the annual report and accounts (sales, profits, etc). A summary of the statement of financial position should also precede the ratio analysis. Then using ratio analysis, how would you assess the company’s financial performance over these two years? The interpretation and explanation of the movement in these ratios are just as important as the numbers. The best format is one page of ratios followed by several pages of explanation. |
| 4 | The impact of current events since the last balance sheet date | How will these events impact on the company, based on the analysis you have already provided in sections 2 and 3. |
| 5 | Predictions for the future (conclusions) | Make use of section 1 – 4 above plus independent analysts’ reports (but do not just copy these out) |
| 6 | Appendix | A copy of the income statement and the balance sheet should be included as an appendix. Other items from the annual report and accounts need not be included. (print screen evidence) |
Reports will be marked on the basis of:
- Comprehensive submissions for each of sections 2 – 5 (which have not just been copied out from available sources).
- The way in which each section informs your conclusions i.e. the ratio analysis interpretation should depend on events reported in your background section, the impact of the current events should relate to some ratios or absolutes, and predictions for the future should depend on history, the two years shown in the annual report, and the most recent events.
NOTE: Marks will be allocated for all workings shown.
SUBMISSION:
Both the section should be submitted with workings and all sources. Submission date is Thursday 11th March 15. . Upload your work in BREO during the lab session before 5.00pm.
Any submission received after this deadline will be not be accepted for marking, and will be deemed a NO SUBMISSION.
Mitigating circumstances are normally allowed only for reasons clearly outside the control of individual students (computer failure would not be seen as one of these reasons). In order to apply for mitigating circumstances you should arrange an appointment with SID at the student centre. Mitigating circumstances may not be awarded by your tutor under anycircumstances.
IMPORTANT: please write your name and ID number on the Assignment first page.
Business News websites:
www.bbc.co.uk/business
