In this course you will have the opportunity to apply the concepts learned to a real-world financial reporting scenario as part of your Term Project. For this project you will be creating a report about an assigned company. You will research the company, answer questions, and analyze their financial statements. Attention will be given to a comparison of GAAP and IFRS reporting requirements.
Project Milestones and Schedule of Delivery
Below is a table of project milestones that you will deliver throughout this term. These milestones will help you to manage your time effectively.
ACC319 Course Project Summary of Requirements
Project Part Submission Dates
Part 1: Business Summary • Unit 2
Part 2: Ratio Analysis Discussion • Unit 3
Part 3: Financial Statements and Disclosure Notes • Unit 4
Part 4: Pulling It All Together - Analysis and Conclusion • Units 5
General Instructions:
1. Download the 2010 annual report for Marks & Spencer, PLC.
2. Download the Excel template file for Part 2 - Ratio Analysis.
3. Thoroughly read the annual report then address the requirements for each part of your project.
Use complete sentences and be sure to cite the source of your response. If the question asks for a numerical response, give supporting details from the Disclosure notes to fully explain your response. For example, if you are asked to compute a ratio, cite the location (page number) in the annual report where you found the number and explain the significance of this ratio and the result that you calculated.
4. Write the report in MS Word. Make sure to use complete, grammatically correct sentences.
5. Use APA formatting with a Cover Page.
6. Use at least two outside resources to support your opinions and assertions. For a list of possible resources, please see the Term Project Resources file under the Course Materials section of our course website.
7. Be sure to include your Excel file calculations as an Appendix to your written report.
8. Run the Spellcheck function, and proofread your report! Sometimes the Spellchecker replaces the wrong word.
9. Submit each Part in the appropriate unit. Each Part will be graded independently of the others.
10. When you pull your report together in Part 4, be sure to add appropriate headings.
Requirements
Part 1: Business Summary
You will begin working on your project in Unit 2 and will submit Part 1 of your project in this unit. (Part 1 will become the introduction of your report when you pull your project together in Unit 5). In this portion of your project you will be identifying the background information about the company.
For Part 1 of your project:
1. Write a brief summary of M&S, PLC's:
• Line of business,
• Countries in which it operates,
• Corporate HQ address, and
• Currency in which its Financial Statements are prepared.
2. Discuss the Standards under which the report was prepared, i.e. GAAP or IFRS and discuss the differences between the reporting standard and the alternate standard.
An appropriate length for this part of your project is 1-2 pages.
Note: Later in Unit 5, as you complete Part 4, this section will become the introduction for your report in Part 4.
Part 2: Ratio Analysis
In Unit 3 you will complete and submit Part 2 of your project. This part of your project will provide you with experience in working with ratio analysis.
Click HERE to download and use the Microsoft Excel template to compute the following ratios. You will also need to discuss their significance.
1. Cash Debt coverage ratio
2. Current ratio
3. Receivables turnover
4. Free cash flow
5. Profit Margin
6. EPS
Please note you will include this information later in your final report in the Appendix section of your report in Part 4.
Part 3: The Body
In this part of your project you will address the financial statements and disclosure notes.
Be sure to use complete sentences and to write in paragraph form. Do NOT write your paper in a Question and Answer format. Please use subheadings to signify a change in topic. For example: Assets, Cash and Equivalents, Revenue, etc. Be sure to answer all questions.
The Financial Statements
Review the M&S 2010 Annual Report to discuss the information below.
1. What were the Total assets on the last day of the reporting period for the last two years? What was the reason for the difference?
2. What were the Cash and Cash equivalent balances for both years? Explain why this difference is significant.
3. What were the selling and marketing expenses for 2010? For 2009?
4. What were Revenues for 2010? For 2009? Discuss why they are different.
5. What were Depreciation and Amortization expense for 2009 and 2010? Explain the increase/decrease.
6. What type of Income Statement format does M&S use? Discuss why they have chosen this form.
7. What were the cash flows from its operating, investing and financing activities for 2010? What was the trend in net cash provided by operating activities over the period from 2009 to 2010? Explain the changes.
This section should be approximately 1-2 pages in length.
The Disclosure Notes
Carefully read the Disclosure Notes and discuss the following information in relation to M&S's Revenue Recognition policy.
1. Is their accounting policy consistent from year to year? Please explain.
2. Give two examples where Historical Cost is used and two examples where Fair Value is used. Be sure to explain the significance of this accounting policy, and cite the source of your information.
3. What is their policy regarding refunds and loyalty schemes? Discuss the significance of this policy.
The disclosure section should be approximately 1-2 pages in length.
You will submit both the financial statement and disclosure sections for Part 3 of your project. Remember to proof read your work before you submit it. Additionally, Part 3 of your project must be submitted in Unit 4.
Note: In the next unit, for Part 4, you will use this information as the body of report as you pull all parts together of your project.
Part 4: Pulling It All Together - Analysis and Conclusion
For Part 4 of your project you will combine all Parts of your project into one document and add create the conclusion for your report. You will submit your entire report before the last day of unit. Part 1 will become the introduction. Part 2 will become the Appendix. Copy the calculations from your Excel document into in the Appendix section of your report. Part 3 of your project is the body of your paper.
For Part 4 you are required to discuss the overall significance of the ratio analysis results above and form a conclusion about the overall financial status of M&S. Be specific with your response and support your opinion with facts from the Annual Report, research from the Internet, and your textbook. Be sure to use complete, grammatically correct sentences. Use proper APA formatting for your references. You must use at least two resources to support your opinion. For example, you may use a comparison of Industry ratios, or Revenue trends.
Your conclusion should be approximately 1-2 pages.
Overall Grading
The entire Course Project will be worth 15% of your over-all course grade. You will be graded on the accuracy of your calculations, completeness of the project, as well as your critical thinking and reasoning skills. Each part of your project will be grading independently of the others, and will be proportionately weighted as follows:
The Course Project Parts are weighted as follows:
o Part 1 - 10%
o Part 2- 35%
o Part 3- 40 %
o Part 4 - 15 %
Total Project 100%
Detailed Grading Criteria
Part 1
• Content 85% - Content demonstrates sufficient elaboration on subject; exhibits problem solving and critical thinking skills; appropriate length, logical sequence and order, clarity, appropriate use of any graphics and supplemental material; opinions are supported by research material.
• Written Communication 15% - Demonstrates proper written communication: proper grammar, correct spelling, word usage, syntax, composition, properly cited references.
Part 2
• Calculations 100% - Financial Ratios are correctly calculated.
Part 3
• Content 85% - Content demonstrates sufficient elaboration on subject; exhibits problem solving and critical thinking skills; appropriate length, logical sequence and order, clarity, appropriate use of any graphics and supplemental material; opinions are supported by research material.
• Written Communication 15% - Demonstrates proper written communication: proper grammar, correct spelling, word usage, syntax, composition, etc.
Part 4
• Content 70% - Content demonstrates sufficient elaboration on subject; exhibits problem solving and critical thinking skills; appropriate length, logical sequence and order, clarity, appropriate use of any graphics and supplemental material; opinions are supported by research material.
• Written Communication 15% - Demonstrates proper written communication: proper grammar, correct spelling, word usage, syntax, composition, etc.