Master of Business Administration
FINANCIAL & MANAGEMENT ACCOUNTING
October 2012 – September 2013
Financial and Management Accounting
You are required to submit an individual assignment that is expected to be approximately 3000 words in length. This will be 50% of the total mark for the class.
THE AIM OF THE ASSIGNMENT
The aim of the assignment is to enable you to be familiar with the financial reports that are published by companies to provide information to the interested parties. It is intended that you should interpret the information from both the financial statements and the other reports that are included in the Annual Report and also in the other announcements that companies make from time to time.
As the projects manager of a UK - based company that is quoted on the London Stock Exchange (LSE), you report to the finance director. The company is considering making a takeover bid for another LSE listed company in the same line of business and the finance director has asked you to prepare the initial evaluation of the target company for consideration by the Board of Directors. At present you have no access to the target company beyond information available in the public domain and so the starting point will be the annual report of the company that is available on its website.
SELECTION OF A TARGET COMPANY and at least one other company in the same industry as a BENCHMARK
You have to select your own target company. Choose a UK LSE (Main Market, not AIM) listed company (other than the one you work in) in any sector except banking and other financial institutions. It must not be a subsidiary of another company or an overseas company with a UK listing. Avoid companies that have been involved in a major takeover or disposal during the period that you are investigating. It is likely that there will be some changes that will have occurred in most companies but do not choose one if the change is substantial. In addition, do not select a company that has made a loss during the period.
Send the name of your company to your local counsellor for approval. The counsellor will check that your company has already been chosen by another student and that it is a suitable company for you to analyse. Before submitting your company for approval. make sure that the other companies in the same industry so that they can be used as benchmarks to enable you to assess the performance and financial position of your company. It is unlikely that you will find companies that are exact matches but the local counsellor will provide guidance.
SOURCES OF INFORMATION
Your main source of information is the annual report which will be available on the company’s website. The company website may have more information in the section for ‘investor relations’. You may wish to use other reference sources that are available on the university library website. Give clear reference to all sources used and numbered footnote references should be included in the text of your report.
OUTLINE OF REPORT
Your report is expected to be at least 3000 words (excluding tables and references). You must give a word count on the title page of your report. As a guideline, it is suggested that the report should contain the following sections:-
Introduction (300 words)
The nature of the business of the company and relevant information of the industry.
This information should be available from the five-year summary in the annual report and
the additional information should be available online. The trends in growth of sales and profits, profitability and any other key indicators for this company should be included on this part of the report..
Strategy and forward planning (300 words)
What information can be found about the target company’s strategy and forward planning? There will be information in the annual report and details...
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