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英国东英吉利大学留学生国际会计与财务管理作业写作需求由英国作业网提供，英国作业网专业指导英国ASSIGNMNET,指导essay.UNIVERSITY OF EAST ANGLIA
Norwich Business School
NBS-MA21 INTRODUCTION TO ACCOUNTING AND FINANCE ASSIGNMENT DETAILS
Your client, Mrs Deborah Mayer, is considering investing some recently inherited money in the shares of a major company. She has no previous experience of being a shareholder, nor has she any accounting expertise. Deborah is also concerned that her new-found wealth should not compromise her view of herself as an ethical individual, with high moral standards, and so wishes to be assured that her company of choice observes ethical conduct in its operations. She has identified a company in the pharmaceutical sector, GlaxoSmithKline plc (GSK), as being of potential interest to her. As her financial advisor you are required to prepare a report for Mrs Mayer, advising her as to whether this is an investment you would recommend. You should base your recommendations on information obtained from the company’s 2009 Annual Report (available at as well as accounting knowledge you have gained from your studies to date, and any other useful sources of information you identify during your research.
Your report should address the following:
Prepared in suitable format, with good presentation and structure (10%)
Analysis of annual report (10% for each question)
Do you think the Business Review in GSK’s Annual Report provides essential information for users of its financial statements? Why would a potential investor such as Mrs Mayer find it valuable? Which other groups of users might find it valuable?
Do you believe GSK is an ethical company? Is it a responsible corporate citizen? What evidence is provided (or lacking) in the Annual Report to support your opinion?
Identify and discuss the main elements of business risk faced by GSK. What is your assessment of the impact of the current global financial crisis on GSK’s business risk?
Who are GSK’s external auditors? Will they continue to audit the company next year? What sort of audit opinion did GSK receive in 2009? Explain, in your own words, what such an audit opinion means?
Explain GSK’s accounting policy for the treatment of:
a) research and development (R&D) expenditure
b) depreciation of property, plant and equipment
c) inventory valuation
Discuss the implications of each of these treatments for reported profitability.
2
The Annual Report provides some ratios (e.g. gearing) which may help users to analyse business performance. Using the consolidated accounts, calculate FOUR other ratios, and explain why you believe these are useful for a potential investor. You should show all workings and calculate the ratios for 2008 and 2009.#p#分页标题#e#
Discuss the potential problems which may arise in trying to compare GSK’s financial performance with that of a key competitor based solely on the financial statements. Explain whether the use of ratios can help to overcome such problems.
Identify one of GSK’s main competitors, and evaluate the relative quality of their 2009 Annual Reports in terms of how informative they are for a potential investor.
In your opinion what are the limitations of GSK’s Annual Report, and what additional information do you believe should be included that is likely to be useful to a potential investor?
IMPORTANT INFORMATION
Your discussion should not exceed 1,500 words excluding references and appendices. You should include the word count on your cover page.
Submission date: by 3.00pm Monday 15 November 2010.
The report should be word-processed in 12pt font, double-spaced between lines, printed only on one side of the page, using black colour for the main text. Put a page number on each page and staple or bind your report.
You should observe the following guidelines for writing a report:
(1) The report should be headed up appropriately, e.g.:
To: Mrs Mayer
From: Financial Advisor
Report title
Terms of reference / Introduction
(2) Main body of report
You should ‘signpost’ your work. That is, you should give section and subsection headings where relevant so it is easy to follow your report. It is recommended that you follow the structure of the questions in completing the report: answers should be in the same order as the questions.
(3) Conclusion and recommendations
Your report should end with a conclusion, summing up your main findings and making your recommendations.
Plagiarism is an academic offence. See for details. Answer the questions in your own words. You should not quote extensively from the Annual Report.
You should use the Harvard style of referencing to cite the work of others. A copy of the guide is available on Blackboard.
When you have finished writing your report, re-read it to check for language mistakes.
Happy writing!
Omiros Georgiou
October 2010
Today’s learning outcomesIdentify the major categories of ratios that can be used for analysis purposes
Calculate key ratios for determining the financial performance and position of a business
Explain the meaning of the ratios calculated
Discuss the limitations of ratios as a tool of financial analysis
Relationships between figures in the financial statements (or resources of the business)
Used to evaluate the overall financial condition of business or for inter-firm comparison to assist decision-making
Only the starting point for further analysis!
Quantitative process – may need to be supplemented by qualitative factors to get a complete picture
英国东英吉利大学留学生国际会计与财务管理作业#p#分页标题#e#写作需求由英国作业网提供，英国作业网专业指导英国ASSIGNMNET,指导essayWhat are accounting ratios?
Relationships between figures in the financial statements (or resources of the business)
Used to evaluate the overall financial condition of business or for inter-firm comparison to assist decision-making
Only the starting point for further analysis!
Quantitative process – may need to be supplemented by qualitative factors to get a complete picture
http://www.ukassignment.org/daixieAssignment/daixieyingguoassignment/Profitability – how effective the firm is at generating profits given sales and/or its capital assets
Efficiency – the rate at which the company sells its stock and the efficiency with which it uses its resources
Liquidity – the ability of the firm to pay its obligations
Financing / Gearing – information on the exposure of the business to loans as opposed to share capital
Investment – information to enable decisions to be made on the extent of the risk and the earning potential of a business investment
Profitability – how effective the firm is at generating profits given sales and/or its capital assets
Efficiency – the rate at which the company sells its stock and the efficiency with which it uses its resources
Liquidity – the ability of the firm to pay its obligations
Financing / Gearing – information on the exposure of the business to loans as opposed to share capital
Investment – information to enable decisions to be made on the extent of the risk and the earning potential of a business investment
Financial ratios allow for comparisons:
- between companies
- between industries
- between different time periods for one company
- between a single company and its industry average
- with planned performance
However, ratios of firms in different industries, with different risks, capital requirements, and competition are not usually comparable!
Show how effective the firm is in using its resources or sales to generate profit
Return on capital employed (ROCE)
Return on shareholders’ funds (ROSF)
Gross profit margin
Operating profit margin
- the higher the results the better
2008
2009
Return on Capital Employed (ROCE)
Operating Profit (profit before interest and tax)
100
Capital employed (share capital and reserves and non-current liabilities) #p#分页标题#e#
Return on shareholders’ funds (ROSF)
Profit for the year (net profit after tax) less any preference dividend
x 100
Ordinary share capital and reserves
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