Demonstrate a deep and systematic understanding and broad knowledge of financial statements and the concepts of corporate finance and investment appraisal

Submission Deadline

Marks and Feedback

Before 10am on:

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20 working days after deadline (L4, 5 and 7)15 working days after deadline (L6)10 working days after deadline (block delivery)

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Unit title & code

Accounting and Finance AAF044-6

Assignment number and title

Assignment Two - Main

Assignment type

Business Report

Weighting of assignment

60%

Size or length of assessment

3000 words

Unit learning outcomes

1. Demonstrate the following knowledge and understanding: Demonstrate a deep and systematic understanding and broad knowledge of financial statements and the concepts of corporate finance and investment appraisal in order to evaluate management decisions against strategic corporate objectives.

2.   Demonstrate the following skills and abilities: Analyze financial statements and evaluate management decisions through the application of relevant financial tools and techniques to assess their validity in achieving strategic corporate objectives.

What am I required to do in this assignment?

You need to select Next UK (fashion retailer). Using your chosen company, write a 3000 words report covering the following:

1.    Introduction -You should provide a short introduction to your organisation (its key features), its corporate objectives. Then identify the key resources in your organisation, before providing a brief comment on its management issues and the challenges it faces in meeting its objectives in its markets (20%).

2.    Critically discuss how budgets may be used as measure of performance, and whether favourable

variances should be investigated to discover their cause (30%)

3.    Critically discuss why ‘The acceptability of an investment proposal depends on the company’s cost of capital; a project that is acceptable to one company may not be acceptable to another.’ (20%)

4.    Looking at the disclosures about the Nominations committee in your chosen company’s annual report, identify the main functions of the audit committees, the membership of the committee and the issues that the committee has focused on during the reporting year, and suggest any improvements where possible. (20%)

5.    Conclusion -You should finish your assignment with a reflective conclusion in which you record how the work you have undertaken in your assignment has helped in your appreciation of the financial position and performance of your organisation, and in your current role (10%)

What do I need to do to pass? (Threshold Expectations from UIF)

In order to pass Assessment 2 you will need to:

Form a judgment on the appropriateness and effectiveness of an organizations financial strategy and its alignment with strategic corporate objectives through a thorough understanding of an organization’s financial information and by reference to relevant literature.

How do I produce high quality work that merits a good grade?

The work demonstrates excellent in-depth knowledge of key corporate objectives, capital structure, dividend policy and corporate governance and evidence of extensive independent study and thinking.

 The work shows evidence of synthesis, independent critical analysis of current research/knowledge, clearly argued alternative approaches, and the ability to reason in a clear and effective manner and the ability to independently assess own and others’ work with very clear justifications and sound judgment is demonstrated.

The work demonstrates an ability to independently synthesize information and ideas, to create a range of new insights/original responses to problems that may expand or redefine existing knowledge and/or develop new approaches to unpredictable situations.

The work demonstrates an ability to present confident, tightly structured, stimulating, and rigorous arguments that show a high level of academic ability.

Clear evidence of analysis and interpretation of data and in reaching conclusions.

How does this assignment relate to what we are doing in scheduled sessions?

Teaching plan

Core text: Atrill, P, McLaney, E, (2014) Accounting and Finance for Non-Specialist. 9 th ed. Harlow: Pearson

Session

Topic

Reading guide

1

What is accounting and finance?

Chapter 1

2

Measuring and reporting financial position

Chapter 2

3

Measuring and reporting financial performance

Chapter 3

4,5

Analysing and interpreting financial statements

Chapter 7

6

Analysing and interpreting financial statements

Chapter 7

7,8

Library session on using databases such as FAME

9

Assignment on review

10

Cost behaviour and relevant cost

Chapter 9

11,12

Budgeting

Chapter 12

13,14

Capital and investment appraisal

Chapter 14

15

Sources of finance and capital structure

Chapter 15

16

Managing working capital

Chapter 16

17

Agency theory and corporate governance

Chapter 5

18

Assignment two review

Your assignment will be marked according to the threshold expectations and the criteria on the following page. You can use them to evaluate your own work and consider your grade before you submit.

Pass – 40-49%

Pass – 50-59%

Commendation – 60-69%

Distinction– 70%+

Introduction (20%)

The case is presented with a basic description of the organization. No key issues or decision areas identified.

An overview of the company is presented identifying at least one key issue

An overview of the company is presented with key issues identified

A clear overview of the case with key issues identified and linking them with the decision areas.

Budgeting (30%)

Basic analyses of capital structure and limited understanding of the dividend policy of the company

Fair analysis of capital structure and dividend policy and implications for the company

Very good analysis of capital structure and dividend policy and implications for the company and able to link with some non- financial information

Excellent analysis of capital structure and dividend policy and implications for the company and able to link with non-financial information

Investment Appraisal tools

(25%)

Basic analysis of analysis of investment appraisal tools and demonstrating some understanding of how they can be used.

Fair analysis of investment appraisal tools and demonstrates basic understanding of how they can help the company in achieving their corporate objectives

Very good analysis of investment appraisal tools and demonstrates some understanding of how they can help the company in achieving their corporate objectives

Excellent analysis of investment appraisal tools and how they can help the company in achieving their corporate objectives

Corporate governance

(15%)

Minimal understanding of the Nominations committee

Fair understanding of the effectiveness of Corporate Governance as implemented by the company

Very good understanding of the effectiveness of Corporate Governance as implemented by the company

Excellent understanding of the effectiveness of Corporate Governance as implemented by the company