Assignment Task for Interpreting the Final Accounts
Task: Write a report interpreting the Final Accounts of your chosen business over a number of years.
This Task may be researched in groups but must be completed individually. It should be presented in report format using business English. (1,500 words)
The report must be uploaded (in MS Word format) onto the vle by the completion date and a hard copy provided to the tutor for inclusion in your portfolio.
You should choose a company whose accounts you would like to interpret from the list below. The accounts for each company, over a number of years, can be found in the ‘Investors’ section of their websites (links are given below).
J Sainsbury plc
A grocer, established for nearly 150 years, who has expanded into other sectors in recent years.
https://www.about.sainsburys.co.uk/investors/results-reports-and-presentations#2017
Accell Group
Bicycle manufacturer whose main markets are Europe and America.
https://www.accell-group.com/en/investor-relations/annual-reports/annual-reports-of-accell-group.htm
Barratt Developments PLC
A housebuilder, involved in a number of developments in the Cambridge area.
http://www.barrattdevelopments.co.uk/investors/results-reports-and-presentations/rp-2017
Marks and Spencer PLC
High Street retailer. Started in business selling clothes from a market stall, the business has expanded to incorporate food, housewares and banking.
https://corporate.marksandspencer.com/investors/reports-results-and-presentations
Carphone Warehouse
Sell mobile phones, among other things.
http://www.dixonscarphone.com/investors/reports-and-presentations/2017
The information in your report should provide a detailed response to the assessment criteria, namely:
| 1.1 calculate a full range of ratios, including those relating to profitability, liquidity, accounting and working capital |
| 1.2 differentiate between the strengths and limitations of each ratio. |
| 2.1 use a variety of ratios to interpret the final accounts over a period of time |
| 2.2 justify the interpretation and relate it to the economic climate of the period. |
| 3.1 use the interpretation of the ratios to make recommendations for future financial activities |
| 3.2 made recommendations relating to other departments within the company. |
Analyse the Final Accounts for your business by using ratios and any other means that you consider justified, interpreting your results and explaining what they mean for the business.
You may enhance your report by using graphical analysis and diagrams to illustrate your findings.
Your report should analyse and interpret the accounts of your chosen business, including how they relate to the economic climate of the time, together with your financial recommendations for the future and how other departments in the business could improve their performance. The report should also have an introduction and a conclusion.