Subject Specific Learning Outcomes:
1.Present financial information in accepted formats for publication
2.Interpret financial statements
Generic Learning Outcomes
Following this module a learner will develop the:
b) Ability to use established techniques to undertake critical analysis and propose solutions to problems
c) Ability to work and study independently and utilise resources effectively
d) Numeracy and quantitative skills
Assessment Criteria:
1 Present financial information in accepted formats for publication
• Explain how the information needs of different user groups vary
• Prepare financial statements in a form suitable for publication by a sole trader, partnership and limited company
2 Prepare financial statements from complete or incomplete records
• Calculate accounting ratios to assess the performance and position of a business
• Prepare a report incorporating and interpreting accounting ratios, including suitable comparisons.
Assignment brief:
Task 1:
a) Referring to the Trial Balance attached in Appendix 1, draft the Financial Statements for Wednesday Trading Ltd as at 31 March 2016 in a format suitable for publication.NB
You do not have to include a statement of cashflows, a statement of changes in equity or accounting policies and explanatory notes
b) Discuss who the users will be for annual reports/financial statements for a sole trader, a partnership and a limited company. You should address what informational needs the users will have when assessing these statements/reports and why they may differ.
Task 2:
Referring to the abridged balance sheets for Castle Ltd and Palace Ltd attached in Appendix 2
a) Calculate the following ratios for both companies and give a brief explanation of their significance
(i) gearing ratio
(ii) the working capital ratio
(iii) the acid-test ratio
(iv) return on capital employed
b) Write a report to a potential investor with £100,000 available to explain which of the two companies represents the better choice of investment.
Assignment requirements:
Purpose of this assignment: This is an individual assignment designed for students to demonstrate their understanding of Financial Reportingin relation to the identified learning outcomes.
This assignment is worth55% of the module's overall mark. Students will complete an individual written response equivalent to 2750 words that will require them to understand the range of topics covered in this module. The weighting for each task is 50% of the total mark.
Academic requirements:
• Your work must be submitted as pages 10 -12 of pages
• Student declaration must be completed.
• Your work should be submitted in the formats outlined for each task in the assignment
• The entire assignment brief and completed front sheet must accompany your work.
• All work must be referenced using the Harvard method.
• Provide a reference list
• All pictures from any secondary source should be referenced appropriately. Wiki pages, Ivory Research and blogs will not be accepted as appropriate sources of evidence.