Assignment Brief

MBA International Business & Finance

Academic Year 2018-19
Module Information:
Qualification: MBA International Business & Finance

Module Code & Title: MBAIBF 110004 FINANCIAL REPORTING IN BUSINESS

Assignment Title: Individual Report

Component Weighting: 30%

Date of Issue:28 Nov 2018 Due date:06 Dec 2018, 2 PM

To be filled by the student:

Student ID:

Date of Submission:

*All work must be submitted on or before the due date. If an extension of time to submit work is required, a Mitigating
Circumstance Form must be submitted.

Has an extension been approved? Yes No

If yes, please provide the new submission date ….…/.…./……., and affix appropriate evidence.

First Marker: Second Marker:

Agreed Mark: Refer: Yes / No

General Guidelines
1. A Cover page or title page – You should always attach a title page to your assignment. Use
previous page as your cover sheet and be sure to fill the details correctly.
2. This entire brief should be attached in first before you start answering.
3. All the assignments should be prepared using word processing software.
4. All the assignments should print in A4 sized paper, and make sure to only use one side
printing.
5. Allow 1” margin on each side of the paper. But on the left side you will need to leave room for
binding.
6. Ensure that your assignment is stapled or secured together in a binder of some sort and send
the Softcopy of your final document to mba.assignment2018@gmail.com.
7. The submission of your work assessment should be organized and clearly structured.

Word Processing Rules

1. Use a font type that will make easy for your examiner to read. The font size should be 12
point, and should be in the style of Times New Roman.
2. Use 1.5-line word-processing. Left justify all paragraphs.
3. Ensure that all headings are consistent in terms of size and font style.
4. Use footer function on the word processor to insert Your Student ID, Name, Subject, Module
code, and Page Number on each page. This is useful if individual sheets become detached
for any reason.
5. Use word processing application spell check and grammar check function to help edit your
assignment.
6. Ensure that your printer’s output is of a good quality and that you have enough ink to print
your entire assignment.

Important Points:
1. Check carefully the hand in date and the instructions given with the assignment. Late
submissions will not be accepted.
2. Ensure that you give yourself enough time to complete the assignment by the due date.
3. Don’t leave things such as printing to the last minute – excuses of this nature will not be
accepted for failure to hand in the work on time.
4. A printed version of the assignment needs to be submitted physically along with ansoft
copymailed to the email mentioned above on or before the stated deadline.
5. You must take responsibility for managing your own time effectively.
6. If you are unable to hand in your assignment on time and have valid reasons such as illness,
you may apply (in writing) for an extension.
7. Non-submission of work without valid reasons will lead to an automatic REFERRAL. You will
then be asked to complete an alternative assignment.
8. Take great care that if you use other people’s work or ideas in your assignment, you properly
reference them in your text and any bibliography, otherwise you may be guilty of plagiarism.

MBAIBF 110004 FINANCIAL REPORTING IN BUSINESS

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 Statement of Originality and Student Declaration

I hereby, declare that I know what plagiarism entails, namely to use another’s work and to present it
as my own without attributing the sources in the correct way. I further understand what it means to
copy another’s work.
1. I know that plagiarism is a punishable offence because it constitutes theft.
2. I understand the plagiarism and copying policy of the University of the West of Scotland.
3. I know what the consequences will be if I plagiaries or copy another’s work in any of the
assignments for this program.
4. I declare therefore that all work presented by me for every aspect of my program, will be my
own, and where I have made use of another’s work, I will attribute the source in the correct
way.
5. I acknowledge that the attachment of this document signed or not, constitutes my agreement
on it.
6. I understand that my assignment will not be considered as submitted if this document is not
attached to the attached.

Student’s Signature: Date:

TASK

MBAIBF 110004 FINANCIAL REPORTING IN BUSINESS

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Take a company of your choice…...Briefly give an introduction of the company and discuss the
contents in the Annual Report 2017-18

Assume you are the Chief Financial Officer of the same organization.
Prepare a note discussing the various points that are required to be covered while preparing
the Disclosure Notes forming part of Financial Statements, stating the Accounting Policies
your company has adopted in respect of the following items:

1. Fixed Assets-Tangible assets and Intangible assets.

2. Depreciation/ Amortization
3. Impairment of assets
4. Expenditure during construction period
5. Borrowing costs
6. Provisions, contingent assets and contingent liabilities.

Word limit 1500-2500 words.

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Introduction

Both businesses having been part of British Leyland for parts of their histories until 1984,
Jaguar Cars and Land Rover were eventually reunited into the same group again by the Ford
Motors in 2002.Ford had acquired Jaguar Cars in 1989 and Land Rover from BMW in
2000 In 2006, Ford purchased the Rover brand name from BMW for around £6 million. This
reunited the Rover and Land Rover brands for the first time since the Rover group was
broken up by BMW in 2000.
Jaguar Land Rover Automotive Plc. (‘the Company’) and its subsidiaries are collectively
referred to as ‘the Group’ or
The Company is a public limited company incorporated and domiciled in the United
Kingdom. The address of
Its registered office is Abbey Road, Whitley, Coventry, CV3 4LF, England, United Kingdom.
The Company is a subsidiary of Tata Motors Limited, India and acts as an intermediate
holding company for the Jaguar

Contents of annual report

The following are the contents of the annual report of JLR group
Strategic report
Which contain,
 Performance highlights
 Chairman’s statement
 Chief executive’s statement
 Celebarting10yarsoftataownership

Global growth hand financial performance

It include,
 Driving global growth
 Global sales
 Financial review
 Chief Financial Officer’s statement

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Transforming today for tomorrow
It contain,
 Their brands
 Global operational foot print
 Jaguar land-rover special operation

Resilient business
It includes,
 their approach to risk
 Their risk principle.

Governance
It includes,
 Introduction to governance
 Leadership
 Effectiveness
 Accountability
 Investor relations engagement
 Directors’ report

Delivering for the future

It contain,
 Safer, smarter, cleaner technology
 Why we put customers first
 Leading in Environmental Innovation
 Engaged and passionate people

Financial statement
It contains,
 Independent Auditor’s report to the members
 of Jaguar Land Rover Automotive Plc.
 Consolidated financial statements
 Consolidated income statement
 Consolidated statement of comprehensive
 income/(expense)
 Consolidated balance sheet
 Consolidated statement of changes in equity
 Consolidated cash flow statement
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  Notes to the consolidated financial statements
 Parent company financial statements
 Parent company balance sheet
 Parent company statement of changes in equity
 Parent company cash flow statement
 Notes to the parent company financial statements

Value of our beyond boundaries

It includes,
 Driving to Destination Zero
 Innovation in electrification comes from within
 Jaguar Land Rover: a global community partner
 Technology for good
 built on trust
 Better representation of women in engineering.

Notes to the financial statements

Notes to the financial statement present all such information which cannot be presented on
the face of income statement, balance sheet, statement of cash flows and statement of changes
in equity.

. Statement of compliance
These consolidated and parent company financial statements have been prepared in
accordance with International
International Financial Reporting Standards (IFRS) and IFRS Interpretation Committee
(IFRS IC) interpretations.
Basis of Preparation
The consolidated financial statements have been prepared on a historical cost basis except for
certain financial
Instruments which are measured at fair value. Historical cost is generally based on the fair
value of the consideration
given in exchange for the assets. The principal accounting policies adopted are set out below.

Going concern
The directors have considered the financial position of the Group at 31 March 2018and the
projected cash flows and financial performance of the Group for at least 12 months from the
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date of approval of these financial statements as well as planned cost and cash improvement
actions, and believe that the plan for sustained profitability remains on course.
Therefore, the directors consider, after making appropriate enquiries and taking into
consideration the risks and uncertainties facing the Group, that the Group has adequate
resources to continue in operation as a going concern for the foreseeable future and is able to
meet its financial covenants linked to the borrowings in place.
Basis of Consolidation
The consolidated financial statements include Jaguar Land-Rover Automotive Plc.
Inter-company transactions and balances including unrealized profits are eliminated in full on
consolidation.
Joint ventures and associates.
Joint ventures and associates are accounted for using the equity method and are recognized
initially at cost.

Use of estimate and judgment

The preparation of financial statements in conformity with IFRS requires the use of
judgments, estimates and assumptions that affects the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period.

Revenue recognition
the revenue is recognized when the risks and rewards of ownership have been transferred to
the customer and the amount of revenue can be reliably measured with it being probable that
future economic benefits will flow to the Group. The transfer of the significant risks and
rewards are defined in the underlying agreements with the customer. The group also has a
policy that, if a sale includes an agreement for subsequent servicing or maintenance, the fair
value of that service is deferred and
Recognized as income over the relevant service period in proportion with the expected cost
pattern of the agreement.

Cost recognition

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Costs and expenses are recognized when incurred and are classified according to their nature
and expenditures are capitalized where appropriate.
Government grants are recognized in the consolidated income statement, either on a
systematic basis when the Group recognizes, as expenses, the related costs that the grants are
intended to compensate or, immediately if the costs already been incurred.

Exceptional items
The exceptional item incidents has been disclosed separately in the Consolidated Income
Statement to enhance the reader’s understanding of the performance of the Group presented
as EBIT

Accounting policies regarding,

1. fixed asset-tangible assets, and in tangible assets

Fixed asset-tangible
.
As per the group the, Property, plant and equipment is stated at cost of acquisition or
construction less accumulated depreciation and accumulated impairment, if any. Land
is not depreciated.
Cost includes purchase price, non-recoverable taxes and duties, labor cost and direct
overheads for self-constructed assets and other direct costs incurred up to the date the
asset is ready for its intended use

Acquired intangible assets

As per the group the intangible assets purchased, including those acquired in business
combinations, is measured at acquisition cost, which is the fair value on the date of
acquisition, where applicable, less accumulated amortization and accumulated
impairment. The amortization for intangible assets with finite useful lives is reviewed at
least at each year end. Changes in expected useful lives are treated as changes in
accounting estimates.
2. Depreciation/ amortization
As per the group depreciation for property, plant and equipment with finite useful lives is
reviewed at least at each year end. Changes in expected useful lives are treated as changes in
accounting estimates. And assets held under finance leases are depreciated over their
expected useful lives on the same basis as owned assets or,
Where shorter, the term of the relevant lease. Freehold land is measured at cost and is not
depreciated. Heritage assets are not depreciated as they are considered to have a residual
value in excess of cost. Residual values are reassessed on an annual basis. Intangible assets

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with finite lives, amortization is charged on a straight-line basis over the estimated useful
lives of the acquired intangible assets as per the estimated amortization.
As per the group, amortization for intangible assets with finite useful lives is reviewed at least
at each year end. Changes in expected useful lives are treated as changes in accounting
estimates.
Product engineering cost is amortized over the life of the related product being a period of
between two and ten years.
Capitalized development expenditure is measured at cost less accumulated amortization and
accumulated impairment loss, if any.
Amortization is not recorded on product engineering in progress until development is
complete.

3. Impairment off assets

.

The Group assess each balance sheet date, the Group assesses whether there is any indication
that any assets may be impaired. If any such impairment indicator exists, the recoverable
amount of an asset is estimated to determine the extent of impairment, if any. Where it is not
possible to estimate the recoverable amount of an individual asset, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are
tested for impairment annually or earlier if there is an indication that the asset may be
impaired.
The estimated recoverable amount is the higher of value in use and fair value less costs of
disposal.

4. Construction during construction period

.
Construction contract is a contract specifically negotiated for the construction of an asset or a
group of interrelated assets. The objective of IAS 11 is to prescribe the accounting treatment
of revenue and costs associated with construction contracts

Construction Contracts provides requirements on the allocation of contract revenue and

contract costs to accounting periods in which construction work is performed. Contract
revenues and expenses are recognized by reference to the stage of completion of contract
activity where the outcome of the construction contract can be estimated reliably, otherwise
revenue is recognized only to the extent of recoverable contract costs incurred.
If a contract gives the customer an option to order one or more additional assets, construction
of each additional asset should be accounted for as a separate contract if either the additional

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asset differs significantly from the original asset or the price of the additional asset is
separately negotiated.

5. Borrowing Costs

Borrowing costs may include,

 Interest expense calculated by the effective interest method under IAS 39,
 finance charges in respect of finance leases recognized in accordance with IAS 17
Leases, and
 exchange differences arising from foreign currency borrowings to the extent that they
are regarded as an adjustment to interest costs

The objective of IAS 23 is to prescribe the accounting treatment for borrowing costs.
Borrowing costs include interest on bank overdrafts and borrowings, finance charges on
finance leases and exchange differences on foreign currency borrowings where they are
regarded as an adjustment to interest costs.
Recognition
Borrowing costs that are directly attributable to the acquisition, construction or production of
a qualifying asset form part of the cost of that asset and, therefore, should be capitalized.
Other borrowing costs are recognized as an expense.
Measurement
Where funds are borrowed specifically, costs eligible for capitalization are the actual costs
incurred less any income earned on the temporary investment of such borrowings. [IAS
23.12] Where funds are part of a general pool, the eligible amount is determined by applying
a capitalization rate to the expenditure on that asset. The capitalization rate will be the
weighted average of the borrowing costs applicable to the general pool.

6. Provisions, contingent assets and contingent liabilities

Provision
Provision is a liability of uncertain timing or amount.
As per the group, provision is recognized if, as a result of a past event, the Group has a
present legal or constructive obligation that can be estimated reliably, and it is probable that
an outflow of economic benefits will be required to settle the obligation.
Provisions are held for product warranty, legal and product liabilities, residual risks and
environmental risks as detailed in not to the consolidated financial statements.
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Contingent asset:

 a possible asset that arises from past events, and

 Whose existence will be confirmed only by the occurrence or non-occurrence of one
or more uncertain future events not wholly within the control of the entity.
Contingent assets should not be recognized – but should be disclosed where an inflow
of economic benefits is probable. When the realization of income is virtually certain,
then the related asset is not a contingent asset and Its recognition is appropriate. IAS
37

Contingent liabilities
Contingent liability,
 a possible obligation depending on whether some uncertain future event occurs, or
 a present obligation but payment is not probable or the amount cannot be measured
reliably

Since there is common ground as regards liabilities that are uncertain, IAS 37 also deals with
contingencies. It requires that entities should not recognize contingent liabilities – but should
disclose them, unless the possibility of an outflow of economic resources is remote. [IAS
37.86]

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