FINANCIAL DECISION MAKING | My Assignment Tutor -

Page 1 of 5 Faculty of Design, Media &ManagementAssignment BriefModule Title:FINANCIAL DECISION MAKINGModule Code:BM414Assignment No/Title:ASSIGNMENTAssessmentWeighting:100%Submission Date:25th May 2021 before 2pmFeedbackTarget Date:3 weeksModule Co-ordinator/Tutor:Farzaneh RezaeeCourse AreaFDSubmission Instructions:This assignment is to be submitted electronically using VLE1. This assignment must be submitted electronically by 2pm on the submission date2. To submit electronically you must upload your work to the e-submission area within the VLE moduleconcerned. Click Submit> Browse (find the correct file to upload) Upload> Submit3. You can resubmit your work as many times as you like until the deadline. If you choose to resubmit, yourearlier submission will be replaced, and you will NOT receive an Originality Report until 24 hours from whenthe submission was made.4. You will receive a digital receipt as proof of submission. This will be sent to your Bucks e-mail address; pleasekeep this for reference.5. You are reminded of the University’s regulations on cheating and plagiarism. In submitting your assignment,you are acknowledging that you have read and understood these regulations.6. You are reminded that it is your responsibility to keep an electronic copy of your assignment for futurereference.Instructions to Students:An individual written assignment of 3,000 words maximum is expected. Use the formal report format and include aBibliography/ reference list of all books, journals and websites consulted in your research. Assume that the financialanalysis is aimed at potential investors who are currently considering investing in Camden Limited. The financialperformance evaluation will enable the potential investors decide whether to invest in this company.This assignment tests the following Learning Outcomes for the module:1. Explain the structure of and terms used within the financial statements2. Apply management accounting techniques for planning, control and decision making within theorganisation3. Calculate the main accounting ratios and explain their significance to users of financial statement4. Demonstrate knowledge of the role of finance and accounting within the organisationwith respect to both reporting and decision making aspects Page 2 of 5 The Assignment Task:Please note;SKANSKA PLC is a Construction Company based in UK. SKANSKA PLC started back in 1984. The company is planningto expand its operations to other countries in Europe in the next ten (10) years. The financial statements of SKANSKAPLC. are attached for your consideration and attention.You are advised to incorporate the suggested amendments/feedback you received from the module leader duringassignment briefing.RequiredTASK 1 (1500 WORDS)You are part of the Accounting and Finance team at SKANSKA PLC. Write a report to the Management of SKANSKAPLC, critically evaluating the importance of Accounting and Finance functions, duties and roles within SKANSKA PLC.Your evaluation must include some examples within the Company where appropriate.(40 marks)TASK 2 (1000 WORDS)Using the financial statements of SKANSKA PLC calculate the ratios required and comment on the company’sperformance from an Investor with £1 million perspective.(50 marks)Marks will be awarded for Structure and Presentation skills. Structure includes the orderly presentation of relevant material.In addition, the extent of research evidenced by the appropriateness and adequacy of in-text referencing. There must be aCover Page and Contents Page, paragraphs of Introduction, Conclusion and pages must be numbered.(10 marks)Assessment CriteriaYou will obtain marks for the following:Presentation of your work (report format, clarity of expression, referencing etc.) ……………….……………………….10%The functions/roles/duties of accounting and finance team within SKANSKA PLC with appropriate examples. 40%Ratio calculation……………………………………………………………………………………..………………………… 10%Interpretation and analysis of the Ratios in relation to SKANSKA PLC performance……………… 40%TOTAL MARKS 100% Page 3 of 5The summarised financial statements of SKANSKA PLC, a Public company engaged in Construction, are shown below:Statement of profit and loss: For the year ended31 Dec. 2018For the year ended31 Dec. 2019£000£000£000£000Sales revenue4,8006,000Cost of salesOpening inventory1,200450Purchases2,7004,8003,9005,250Less: Closing inventory(450)(3,450)(900)(4,350)Gross profit1,3501,650Operating expenses(600)(675)Finance cost(150)(300)Net profit600675 Statement of financial positionAs at year to 31 Dec.2018As at year to 31 Dec.2019£000£000£000£000Non-current assets2,9556,000Current assetsInventory450750Receivables – trade9001200Prepayments90105Cash751,515152,0704,4708,070Issued share capital900900Share premium account300300Retained earnings1,1251,6502,3252,850Non-current liabilities10% loan notes1,5003,000Current liabilitiesPayables – trade5702,100Accruals756451202,2204,4708,070 Page 4 of 5Task 2 – Requireda. Calculate the following five ratios for each of the two years:(i) Return on capital employed(ii) Net profit margin(iii) Current ratio(iv) Average Receivable days/ Debtors collection period(v) Average Payable days/ Creditors collection period(10 marks)b. Comment on the performance of SKANSA PLC. results from and position between the two (2) years from (a),mentioning possible causes, reasons and effects for the changes in the ratios.(40 marks)Page 5 of 5 Criteria70%60-69%50-59%40-49%FailPresentationIncluding reportformat, clarity ofexpression,referencing,conclusion10%Brief fully met withinword count.Professionalpresentation andlanguage used in areport format.Excellent range andsource of referencing.Harvard referencingused. ExcellentconclusionsWritten in a Reportformat within wordcount. Meets brieffully. Clearly writtenand presented.Good referencingused from a rangeof sources withsensible anddetailed conclusionsStructured well in aReport format.Writing style issometimes unclear.Adequatereferences howeveronly partial use ofHarvard referencing.A reasonableattempt at aconclusion madeBrief partially metand an attemptmade at a Reportformat. Too long ortoo short. Poorpresentation.Problems withwriting style. Fewreferences and littleconclusion givenBrief not fully met.Far too long or tooshort. Not in aReport format.Unclear structureand poorpresentation. Noreferences orconclusion givenRole of managementaccountingtechniques inplanning,control and decisionmaking process40%Demonstratesexcellent researchand understanding ofthe role ofmanagementaccountingtechniques and of itsuses in planning,control and decisionmakingThe role ofmanagementaccountingtechniques hasbeen wellresearcheddemonstrating agood understandingof its uses inplanning, controland decision makingSome research intothe role ofmanagementaccountingtechniques isdemonstratedtogether with someunderstanding of itspractical uses inplanning, controland decision makingLimited analysis ofthe role ofmanagementaccountingtechniques in anorganization and itsuses in planning,control and decisionmakingLittle or nounderstandingdemonstrated of therole of managementaccountingtechniques in anorganization or itsrole in planning,control and decisionmakingRatio Calculation10%Excellent ratiocalculations with thecorrect units ofmeasurements for allthe ratios requiredover the two-yearperiod.A good ratiocalculations with thecorrect units ofmeasurements forat least 4 of theratios required overthe two-year periodFair ratiocalculations with thecorrect units ofmeasurements forat least 3 of theratios required overthe two-year periodWeak ratiocalculations with thecorrect units ofmeasurements forat least 2 of theratios required overthe two-year periodPoor ratiocalculations with thecorrect units ofmeasurements forat least 1 of theratios required overthe two-year periodInterpretation andanalysis of financialratios40%Excellentinterpretation andanalysis of theperformance areprovided todemonstrate thefinancial situation andpossible causes forthe change from aninvestors perspective.Good interpretationand analysis of theperformance areprovided todemonstrate thefinancial situationand possible causesfor the change froman investorsperspective.Fair interpretationand analysis of theperformance areprovided todemonstrate thefinancial situationand possible causesfor the change froman investorsperspective.Weak interpretationand analysis of theperformance areprovided todemonstrate thefinancial situationand possible causesfor the change froman investorsperspective.Poor interpretationand analysis of theperformance areprovided todemonstrate thefinancial situationand possible causesfor the change froman investorsperspective.