ASSESSMENT TWO FIN400
ASSESSMENT TWO FIN400
Unit Code and Title Accounting and Finance for Business
Assessment Two
Assessment Type Analytical Assignment
Individual/Group Individual Report
Length 2000 words
Learning Outcomes ULO1: Develop an understanding of the critical role of accounting and its impact on overall planning and strategic management of different types of business structures.
ULO2: Evaluate business performance and help managerial decision-making process by providing appropriate financial and market analysis of existing or anticipated business situations.
ULO3: Collaboratively discuss (as teamwork) available data to prepare budgets and plan future operating activities based on cost-volume-profit (CVP) analysis in order to ensure organisational sustainability, and effectively communicate them to peers.
ULO4: Assess the social, cultural, ethical and environmental impacts of reported accounting numbers and managerial decisions made on the basis of those numbers.
Submission Due by Week 10
Weighting 30%
Total Marks 30 marks
CotentsThe assessment guide and Excel workbook containing data for the assignment
Word Count Penalties
As a general rule, word count penalties will only apply:
on anything within +/- 10% of the word limit no penalty is applied.
on anything more than +/- 20% of the word limit, a penalty of 5% of the total marks allocated to the assessment will be applied for every 20% (or part thereof) over the stated word limit.
If the student failed the assessment on initial marking, then a FAIL grade will apply.
Word count includes everything in the main body of the text (including headings, citations, quotes, lists, etc.).
The title page, executive summary, list of references and appendices are NOT included in the word count unless it is clearly stated in the assessment instructions that there is an exception to this rule. Generally, tables are not included either, but sometimes this depends on the assignment and students need to check this with their learning facilitator.
Referencing
It is essential that you use appropriate Harvard style for citing and referencing research.
Analytical Assignment
The case: The Relevance of Firm Accounting Systems for Information System Managers
Objectives
The objective of this assignment is to assess your ability to interpret financial statements, analyse financial performance, and utilize industry benchmarks to inform strategic decision-making in the context of Information System Management.
Introduction
This assignment builds upon your understanding of financial statements and their role in information systems management. You will be analysing a provided company's historical and forecasted financial data using financial ratios and industry benchmarks.
Provided Materials
Financial statements for the company, including Income Statement, Balance Sheet, and Cash Flow Statement for the past two years (Year 1 & Year 2) and forecasted for the coming year (Year 3) (See the attached excel worksheet).
What you need to do:
Task 1: Introduction to the report (10 points): Introduce your report by explaining the significance of financial statement analysis, its limitations, and its practical applications.
Task 2: Financial Statement Analysis (10 points)
Analyse the provided financial statements, including the balance sheet, income statement, and cash flow statement, for each of the past two years and the forecasted year,
identify key trends, changes, and anomalies in the financial data, and
assess the financial health and performance of the company based on the analysis.
Task 3: Ratio Analysis (30 points)
Calculate and interpret key financial ratios such as liquidity, solvency, profitability, and efficiency ratios for the company using the provided industry benchmarks.
Construct common size financial statements ( based on total turnover and total assets).
Compare the company's ratios to industry averages and discuss any significant variances.
Evaluate the company's financial strengths and weaknesses based on the ratio analysis.
Task 4: Forecast Evaluation (20 points)
Critically evaluate the accuracy and reliability of the forecasted financial statements.
Discuss any potential risks or uncertainties that may impact the company's ability to achieve its forecasted resultsTask 5: Strategic Implications (20 points)
Based on your analysis, identify strategic implications for the company in terms of financial management, investment decisions, and operational strategies.
Propose recommendations for improving financial performance and mitigating identified risks.
Presentation (10 Points): You need to respond all the above task and prepare a written report.
Prepare a professional report summarizing your analysis and findings.
Present your analysis and recommendations in a clear and concise manner, supported by relevant data and financial metrics.
Submit your assignment in either Microsoft Word or PDF format, ensuring clarity in formatting and proper labelling of sections. Clearly delineate each task, providing comprehensive responses with examples where necessary. Your assignment will be evaluated based on adherence to task requirements, critical analysis, clarity of communication, integration of relevant concepts, and appropriate use of references.
Suggested Outline of the Report:
Cover Page
Executive Summary
Table of Contents
Introduction
Main Body:
Conclusion
References.
Your assignment file should be labels as
First Name_Last Name_BUS102_ Assessment2.docx
First Name_Last Name_BUS102_ Presentation2.XLX
Assessment 2 Individual Report Rubric
Financial Statement Analysis and Interpretation Assignment
Criteria Excellent (100%) Good (80%) Satisfactory (60%) Needs Improvement (50%) Failing (0)
Task 1: Introduction (10 points) Clearly explains significance & limitations of analysis, well-structured with objectives. Explains significance & limitations, introduction outlines key areas. Explains significance or limitations, some structure. Limited explanation, minimal structure. Missing explanation or structure.
Task 2: Financial Statement Analysis
(10 points) Strong understanding of statements, identifies key trends/anomalies, insightful assessment. Understanding of statements, identifies trends/anomalies, adequate assessment. Basic understanding of statements, some identification of trends, limited assessment. Limited understanding of statements, minimal identification of trends, weak assessment. Missing understanding or analysis of statements.
Task 3: Ratio Analysis (30 points) Accurate calculations of all ratios for all years, clear interpretation, well-constructed common size statements, insightful comparison to industry, strong evaluation of strengths/weaknesses. Mostly accurate calculations, some interpretation issues, common size statements with minor errors, comparison discusses variances, evaluation of strengths/weaknesses. Some calculation errors, limited interpretation, common size statements with significant errors, basic comparison, weak evaluation of strengths/weaknesses. Frequent calculation errors, unclear interpretation, missing or poorly constructed common size statements, minimal comparison, limited evaluation of strengths/weaknesses. Missing or inaccurate calculations, no interpretation, missing common size statements, no comparison, no evaluation.
Task 4: Forecast Evaluation (20 points) Critical assessment of accuracy/reliability, insightful discussion of risks/uncertainties, clear understanding of impact, strong arguments. Assessment considers accuracy/reliability, discusses risks/uncertainties, some understanding of impact, well-reasoned arguments. Basic assessment of accuracy/reliability, mentions risks/uncertainties, limited understanding of impact, arguments lack clarity. Limited assessment, minimal discussion of risks/uncertainties, unclear understanding of impact, weak arguments. Missing or superficial assessment, no discussion of risks/uncertainties.
Task 5: Strategic Implications (20 Points) Identifies strategic implications across financial management, investment, and operations, specific & actionable recommendations for improving performance and mitigating risks, clear connection to analysis. Identifies some strategic implications, some recommendations, attempts to connect analysis to recommendations. Limited identification of strategic implications, vague recommendations, weak connection to analysis. Minimal identification of strategic implications, unclear or missing recommendations, no connection to analysis. Missing identification of strategic implications and recommendations.
Presentation (10 Points) Well-organized report with clear task delineation, concise & effective analysis supported by data, professional formatting, clear & labelled excel sheet. Organized report with some task delineation, analysis mostly clear with some data support, mostly professional formatting, mostly clear excel sheet. Report somewhat organized, task delineation unclears, analysis lacks clarity or data support, formatting needs improvement, excel sheet has issues with clarity or labelling. Poor organization, unclear task delineation, weak analysis with minimal data support, formatting unprofessional, unclear or missing excel sheet. Missing or poorly presented report
