' (PA201) Financial Accounting and Reporting Spring 2017 Coursework Brief; Deadline for Submission: 2pm, 24/03/2017 Submit this coursework through the Student Portal with a Turn-it-in Report Word Limit: 2,000 words (Plus or minus 10%) Learning outcomes assessed: • Prepare the statement of income and balance sheet using international accounting standards including associate companies. • Prepare the cash flow statement using international accounting standards. • Prepare a simplified set of group accounts using international accounting standards. • Demonstrate knowledge of the relevant international accounting standards. This coursework is worth 50% of the total marks for this module. Coursework Instructions, Please read carefully • Carefully read the module handbook, the marking criteria and the grade descriptors. • Make sure all sentences or passages quoted from other people's work in this assignment (with or without trivial changes) are in quotation marks, and are specifically acknowledged by reference to the author, work and page. Assignment Questions Assignment Task: The task requires you to write a report to a prospective investor of both companies evaluating the profitability of the companies and its impact on investor performance indicators. You are required to select two non-financial companies listed on the London Stock Market; obtain their published financial statements for the last 4 years. The two companies should be operating within the same industry group and, therefore, to be competitors. However, the chosen companies should not be operating in the banking, building society, insurance or an estate agent industry. The financial statements should be included in the appendices. Any analysis must compare and contrast the profitability for each company over the four year period and compare and contrast the investor performance indicators for each company over the same four year period. Calculations of a selected number of relevant financial ratios and values must be included; it is suggested that a minimum of three profitability ratios and three investor performance ratios should be calculated to aid the analysis. However, in addition to the financial ratios, together with appropriate graphs and charts; discuss also the non-financial performance indicators of the companies selected. Your assessment must contain an Introduction, Conclusion and Recommendation. The recommendation should indicate which company has performed best from an investor's viewpoint over the period. NB: Please use two very British companies in the retail sector in the United Kingdom, namely (A) Waitros Plc and (B) Wilkinson Plc. Total marks for assignment: 100 What is expected within students' answers Ability to introduce the report, by including assignment objectives, companies selected and financial statements obtained. Profitability analysis; investor performance indicator analysis should be present in the report; compare and contrast the profitability and investor performance indicators of the two companies. The chosen companies should not include banks, building societies, insurance companies or estate agents. Personal learning outcomes should demonstrate the ability to relate theory to the real world. Arguments should be clearly summed up to reach a conclusion and recommendation. Clear, professional evidence of wide research should be provided. End of Assignment Brief Ratio calculations and formulae sheet to be used for the Assignment (A) PROFITABILITY RATIOS GROSS PROFIT PERCENTAGE (GROSS PROFIT/SALES) X 100 = ? % OPERATING PROFIT PERCENTAGE (OPERATING PROFIT /SALES) X 100 = ?% RETURN ON CAPITAL EMPLOYED (OPERATING PROFIT/LONG TERM CAPITAL EMPLOYED) X 100 = ?% NET ASSET TURNOVER SALES/ CAPITAL EMPLOYED = (B) INVESTOR RATIOS EARNINGS PER SHARE -PRINTED AT THE BASE OF THE INCOME STATEMENT – NO CALCULATION REQUIRED P/E RATIO = PRICE EARNINGS RATIO = SHARE PRICE / EARNINGS PER SHARE THESE FIGURES ARE PUBLISHED DIVIDEND YIELD DIVIDEND PER SHARE / CURRENT SHARE PRICE = ?% DIVIDEND COVER PROFIT AFTER TAX / DIVIDENDS = ?TIMES INDICATES HOW SECURE THE DIVIDEND PAYMENTS IN THE FUTURE MIGHT BE Marking Criteria GENERIC ASSESSMENT MARKING CRITERIA LEVEL 5 KNOWLEDGE & UNDERSTANDING INTELLECTUAL & COGNITIVE SKILLS Graduate Skills: transferable, employability, practical and academic skills Factual and conceptual knowledge and understanding; use of class materials; independent reading Critical thinking; conceptualisation; creativity; synthesis, analysis and evaluation; application; problem solving and research/investigation Written, oral and presentation skills; interpersonal, group and teamwork skills; leadership skills; numeracy; digital skills; practical, professional and academic skills (including referencing/presentation MARKING BAND MODULE LEARNIG OUTCOMES CLASSIFICATION WEIGHTED at 40% WEIGHTED at 35% WEIGHTED at 25% Includes all required factual content, accurately and succinctly summarised. Well developed, highly relevant, reasoned introduction and conclusions, demonstrating some originality. Within word count or presentation time. Includes relevant factual content only. Clearly and logically structured material, showing excellent understanding of the discipline. Accurate spelling, grammar, punctuation, paragraphing. Systematic, accurate identification of relevant concepts, theories and/or principles, appropriate to this level. Information or data selected from a very good range of highly relevant, current primary and secondary sources, and categorised, analysed or evaluated using relevant, methods or techniques. Professional, fluent writing style, appropriate to the assignment OR professional, engaging, confident, audible and well paced presentation. Excellent use of technical vocabulary, where appropriate. Exceptional understanding of factual and conceptual material, relative to this level, including some understanding of the limits to knowledge in this area. Well developed, coherent arguments, systematically referencing primary and secondary literature, with clear rationale for choices. Professional visual presentation, including font, spacing, margins, headings, graphics, images and appendices. Calculations are accurate, clearly set out, with precise explanations. Excellent integration of theory and practice, for this level, using appropriate conceptual frameworks. Correct and systematic use of academic conventions, references and bibliography. Independent, wide-ranging, relevant reading and research, from authoritative primary and secondary sources, appropriate to this level. Excellent application of numerical and statistical methods to defined problems. Outstanding, consistent, flexible delivery of group work obligations, for this level. Accepts responsibility and ameliorates conflict. Undertakes complex tasks. Substantiated, highly relevant recommendations. Excellent awareness of ethical issues, where relevant. Excellent, well articulated reflection on own strengths and weaknesses in relation to defined professional and practical skills at this level. Identifies required actions. '