Learning Outcome 1: Critically analyze Financial Accounting Principles to measure Bottom Line impact and develop competitive strategies.
§ PC 1.1: Evaluate the financial and operational performance of an organization
§ PC 1.2: Critically review the influence of Accounting Standards and Accounting Policies in a financial and (macro) economic environment.
§ PC 1.3: Critically discuss financial accounting and management accounting practices that highlight the use/ misuse of financial data.
§ PC 1.4: Discuss how a plan and execution strategy can ensure competitive financial management.
Learning Outcome 2: Critique the relevance and significance of Budgeting Process, Techniques and Methods in driving Organizational Performance.
§ PC 2.1: Critically analyze the relevance of Traditional Budgets versus “new age” Alternative Budgeting Types and Techniques.
§ PC 2.2: Conceptualize the budgeting approaches required to link performance management to improved operational planning and management strategies.
§ PC 2.3: Apply Smart Technologies in Budgeting, Forecasting and Management Control Processes to investigate performance management issues.
Learning Outcome 3: Evaluate Financial Statements and business performance using Ratio Analysis.
§ PC 3.1: Apply Ratio Analysis to interpret the historic business performance of your chosen organization
§ PC 3.2: Critically discuss how forefront developments or disruptions in the external operating environment have impacted the financial performance of your chosen organization.
§ PC 3.3: Evaluate future strategies for financial changes that will improve organizational sustainability.
Learning Outcome 4: Evaluate investment appraisal techniques to support decision-making.
§ PC 4.1: Critically discuss the importance of investment appraisal techniques when approving capital expenditure investment proposals.
§ PC 4.2: Conduct discounted and non – discounted flow analysis.
PC 4.3: Evaluate at least two investment appraisal techniques and apply them to your chosen organization.
Assignment Task: Read the following Scenario, and prepare a Formal Business & Financial Review Document with the guidelines provided.
Assignment – 100 Marks [6000 Words ( +/- 10%)
The assignment below will help you to review and critically analyze financial and management accounting principles, relevant accounting standards/ policies applicable, and apply the relevant knowledge to evaluate the overall business and management performance based on the current complex, volatile, competitive and uncertain economic/business environment by reviewing associated implications [restructuring, consolidation, acquisitions, cost management strategies, disposal of assets, innovations & impact of technological disruptions] within businesses.
You are required to present a Formal Business & Financial Review Document, that would contain a neatly designed Table of Contents to capture the main and sub-topics in an orderly fashion which should adhere to meeting the assessment standards and grading criterion:
Introduction: Choose a public listed corporation related to your current work domain or preferred area of industry. This section would require candidates to research relevant financial and operational performance of the organization by reviewing and understanding the 2018 & 2019 Annual Reports on the chosen public listed company. The facts and figures will help the candidate to answer below questions, and validate with relevant statistics.
1. Introduce the organization in the context of prevailing macro-economic and business conditions by discussing the vision, mission and planning strategies of the company. For the chosen organizations, evaluate the financial and operational performance of the organizations by reviewing the company’s annual performance (read through annual report for the year 2018 and 2019 for specific data) [10 marks].
2. Application of theory to practice [600 to 1200 words]: Demonstrate meaningful understanding of accounting policies by critically reviewing the accounting standards and policies by reviewing academic and non-academic literature pertaining to its implications on the macro-environment. Critically debate the use/ misuse of financial data in the practice of management accounting and financial accounting. With respect to accounting standard, students are required to present arguments and evaluate the significant differences between financial accounting, management accounting, and thereby provide a meaningful explanation of Accounting Standards –[ IFRS & US – GAAP], and in particular discuss the impact of IFRS 9,15 &16 on your chosen company business, with special focus on Balance Sheet impact from a utility and misuse perspective. Plan and execute the management strategies of Cost Volume Profit, etc. for competitive financial management. Figures can be cited from annual reports chosen above. [25 marks].
3. Ratio Analysis & Financial Interpretations [2000 words]: For the question below, in addition to the chosen organization above, also select a competitor organization for the chosen company. Financial data for FY 2018 and 2019 for both the organizations will be used here.
Calculate two ratios each for liquidity, profitability, activity, capital structure and growth which should be critically interpreted and evaluated by comparing each ratio between the chosen and the competitor organization. Interpret each calculated ratio for both the organizations and comment on their business performance.
The interpretation should be supported with the critical analysis of the macro developments with impact of external operating environment on the performance of the organizations. Evaluate and recommend future strategies which will improve organizational sustainability. [25 marks].
4. Literature Review on Budgeting Practices [1700 words]: Carry out a critical analysis which exhibits a suitable understanding of current issues/concepts that are relevant for investigating existing practices of ‘Traditional Budgets’ versus ‘Modern Age’ types of alternative budgeting and techniques in large corporations.
Identify & contextualize budgeting approaches which lead to enhancing operational performance by linking these to the overall operational strategies & decision-making within large corporations.
Also, necessary critical debates must be produced to review the impact of ‘smarter’ technologies in the overall budgeting processes when examining forecasting and management control processes.
5. Investment Appraisal Techniques [700 words]: If you were a Director of a public listed company and had to present a significantly high value capital expenditure proposal to the CEO, how would you critically evaluate investment appraisal techniques that remain important when seeking an approval from the CEO.
Any capital expenditure involves protecting shareholder interests & maintaining a careful balance between risk and rewards, using the concept of ‘time value of money’, to study the impact of choices between discounted cash flows and non-discounted cash flow methods. Conduct thus a discounted and non-discounted cash flow analysis.
You are required to apply necessary knowledge and understanding when examining investment appraisal techniques to suggest, recommend and evaluate at least two popular investment appraisal techniques that can be used & considered by managers/decision-makers in the light of dynamic business & economic conditions. [15 marks].
6. Presentation & References: You should present the whole document in methodical manner and should remain aligned to appropriately demonstrate correct application of the Harvard Referencing System (HRS).