Reference no: EM132281654 , Length: word count:750
Financial & Management Accounting Assignment -
Aim - The aim of the assignment is to provide an opportunity for you to consolidate your learning and apply it in a real work environment.
Group Task - You have recently been appointed as a Consultant to the Solutions for Africa Consulting Group. They have a client who has requested assistance to ensure that the organisation is doing everything it can to maximise its return to shareholders.
You need to visit the client, interview key players at the company (particularly users of management accounts), analyse the situation and write a report to top management indicating your assessment of their weaknesses and your recommendations for improvement. This report should not exceed 15 pages (excluding appendices) and should consider two or three of the following (or even other aspects specific to the company):
- Analyse the financials of the company for the past 2 years...how is the company doing?
- What is the level of internal reporting (management accounting) like?
- What methods are used to report this information?
- How could it be improved/made more meaningful?
- Does the organisation really know what its costs are?
- How are overheads shared / allocated? How fair?
- Does the organisation use transfer pricing? How fair?
- How does it establish selling prices?
- Is there any focus on quality and how do they measure its cost/benefit?
- What are some of the key ratios used?
- How effective is their budgeting process? Level of corporate governance?
- Etc..
DO NOT FEEL CONSTRAINED NOR OBLIGED BY THE ABOVE!!
Individual Task - Please add 2 pages per Syndicate Member indicating the members role in contributing to this project as well as any key learning points which relate back to subjects covered previously as well as any other business experiences that you have had. This should be bound in with your project.
You could peruse these articles to assist with your evaluation of Management Accounting at the selected organisation.
ASSIGNMENT FRAMEWORK -
1. QUESTIONS FOR THE INTERVIEW (All)
2. ASSIGNEMENT FLOW
2.1 Introduction
- Industry overview
- Company presentation and brief Information
- High level overview of the company financial performance
2.2 Finance statement to analyze
- Balance sheet
- Income statement
- Statement of Cash flow
- Statement changes in Equity
2.3 Qualitative Characteristics of Accounting Information
These qualities make accounting information understandable and useful for decision and reporting purposes: the goal of financial reporting is to provide useful information to current and potential investors, creditors, and other users of accounting information (e.g., government, standard-setting bodies) to make investment, credit, and other decisions.
- Relevance: information makes a difference in decision making
- Reliability: information is verifiable, factual, and neutral
- Consistency: information is consistently presented from year to year
- Materiality: usefulness of accounting information.
2.4 Measuring Performance and Profitability
- Gross Margin
- Net Margin
- Return on Assets (ROA)
- Return on Equity (ROE)
2.5 Financial
- Gearing
- Debt to Total Capital
- Interest Cover
- Liquidity
2.6 Efficiency
- Asset Turnover
- Collection Period
- Settlement Period
- Inventory Days
- Inventory Turn
2.7 Market Ratios
- Earnings Per Share (EPS)
- Price/Earnings Ratio (P/E)
- Net Asset Value (NAV) per share
- Price to Book Ratio
- Dividend Yield
- Return on Investment (ROI)
2.8 Key Findings
- How is the company doing? Financials of the past 2 years
- What is the level of the internal reporting? ( management accounting)
- Does the organization really know what its cost
2.9 Recommendation
- On the reporting
- To the
- What is the level of the internal reporting? ( management accounting)
2.10 Conclusion
Note - Do 3 pages framework, the rest of work is 15 pages will be confirmed after framework.
Attachment:- Assignment Files.rar