Compare appropriate formats of financial statements for different types of business

Evaluate appropriate sources of finance for a business project

 

Order Now
SKU: Ques48

Criteria

LO 1:1   

Identify the sources of finance available to a business

 

LO 1:2

Assess the implications of the different sources

 

LO 1:3

Select appropriate sources of finance for a business project

 

LO 2:1

Assess and compare the costs of different sources of finance

 

LO 2:2

Explain the importance of financial planning

 

LO 2:3

Describe the information needs of different decision makers

 

LO 2:4

Describe the impact of finance on the financial statements

 

LO 3:1

Analyse budgets and make appropriate decisions

 

LO 3:2

Calculate unit costs and make pricing decisions using relevant information

 

LO 3:3

Assess the viability of a project using investment appraisal techniques

 

LO 4:1

Explain the purpose of the main financial statements

 

LO 4:2

Describe the differences between the formats of financial statements for different types of business

 

LO 4:3

Analyse financial statements using appropriate ratios and comparisons, both internal and external

 

M1

Effective judgments have been made

(Should evaluate sources of finance based on different criteria LO 1:3)

 

An effective approach to study and research has been applied

(Should analyze financial performance and financial position separately in LO4.3)

 

M2

Four investment appraisal techniques should be used in A range of methods and techniques have been applied

(Relevant and adequate number of ratios should be used in LO4.3 and At least LO3.3)

 

A range of sources of information has been used

(Published Financial Statements of selected companies should be attached under Appendices, At least two main financial statements should be compared in LO4.1,4.2)

 

M3

The appropriate structure and approach has been used (Accurate report structure, language, grammar and Harvard referencing should be applied)

 

A range of methods of presentation have been used and technical language has been accurately used

(Formulas should be used when necessary and    technical language should accurately be used throughout the assignment)

 

D1

Conclusions have been arrived at through synthesis of ideas and have been justified

(Should select the best performance company – LO4.3)

 

Self-criticism of approach has taken place

(Should clearly explain the process of investment appraisal in LO3.3)

 

D2

Autonomy/independence has been demonstrated

(Throughout the assignment)

 

Activities have been managed

(All the tasks should have been managed successfully)

 

 

The importance of interdependence has been recognized and achieved

(Should explain stakeholder decisions based on the selected companies’ performances, instead of general comments – in (LO 2.3)

 

D3

Ideas have been generated and decisions taken

(Should identify the entire impact of financial options on the financial statements in  LO2.4 and Should select the best investment appraisal option in LO3.3)

 

BACKGROUND

This unit is designed to give learners a broad understanding of the sources and availability of finance for a business organization. Learners will learn how to evaluate these different sources and compare how they are used. They will learn how financial information is recorded and how to use this information to make decisions for example in planning and budgeting. Decisions relating to pricing and investment appraisal are also considered within the unit. Finally, learners will learn and apply techniques used to evaluate financial performance

 

Task 01:

Imagine that you as a Management Trainee, have to submit a report to the Chief Accountant of your organization after completing a training programme, “Finance for Decision Making”. Accordingly you are required to find Published Annual Reports of two companies (one report from each company) in the same financial year. Your report should cover the followings aspects;

1.Discuss the main financial statements of the selected annual reports. (LO 4.1)

2.Although the income statement and balance sheet are prepared for the same purposes by companies and sole traders, few differences can be identified with the formats of these two statements. Compare formats of income statement and balance sheet for a company and a sole trader. (LO4.2)

3.Analyze the financial performance and financial position of both companies by using appropriate ratios and select the best company accordingly (Should calculate at least two ratios from each category) (LO 4.3)

4.Assess how above two companies’ financial information helps various stake holders to make decisions (LO 2.3)

5.Identify, sources of finance that are available to any of your selected organization. (LO 1.1)

6.Compare and contrast the sources of finance (based on cost of the source and other factors) that are available to the above selected organization in order to select the best possible sources of finance (LO 1.2, LO 1.3, LO 2.1)

7.Explain how above financing options are appeared on the selected financial statements(LO 2.4)

 

Task 02:

Imagine that your father is a businessman & has been received 2 million of money and expecting to earn some extra income from that money. He is going to consider about effective investment options and expecting some advice from you as a student who is studying BM regarding investment appraisal.

 

Question 01:

He has to choose between three possible projects where the cost of capital and estimated useful life associated with all three investments are 12% and 6 years respectively. The scrap value of Project 01 should be considered as 40% of the initial investment. The three investments are as follows,

Project 1: Purchase a van & hire it for a cab service

Project 2: Build a small shopping complex & rent it out for businessmen

Project 3: Purchase shares from a leading company (shares could be sold at the end of 4th year)

Base on above scenario,

1)Explain the significance of financial planning and capital budgeting decisions (LO 2.2)

2)Explain how to evaluate investments, prepare budgeted cash flows of the investments and select the best option by applying both discounted and non-discounted investment appraisal techniques (You can use your own values and assumptions) (LO 3.3)

 

Learning outcomes:

LO1 Understand the sources of finance available to a business:

1.1 identify the sources of finance available to a business.

1.3 evaluate appropriate sources of finance for a business project.

 

LO2 Understand the implications of finance as a resource within a business

2.1 analyse the costs of different source of finance

2.2 explain the importance of financial planning

2.3 assess the information needs of different decision maker

2.4 explain the impact of finance on the financial statements

 

LO3 Be able to make financial decisions based on financial information

3.1  analyse budgets and make appropriate decisions

3.2 explain the calculation of unit costs and make pricing decisions using relevant information

3.3  assess the viability of a project using investment appraisal techniques

 

LO4  Be able to evaluate the financial performance of a business

4.1  discuss theb main financial statements

4.2 compare appropriate formats of financial statements for different types of business

4.3 interpret financial statements using appropriate ratios and comparisons,both internal and external.

 

Reviews

There are no reviews yet.

Be the first to review “Compare appropriate formats of financial statements for different types of business”

Your email address will not be published. Required fields are marked *

Sorry no more offers available