c


? p Accounting concepts (Conventions) and how they affect ratios to asses performance
and financial position of the company

Explain Accounting Concepts

Explain

’p rue and Fair Value

’p aoodwill
’p Consolidated Financial Statements
’p Segmental Reporting
’p ‘istorical Costs
2p Accounting as marketing
3p Explain nature of information in financial statements and usefulness to stakeholders
4p Explain
’p ‘istoric Cost and Fixed Assets
’p Êrudence
’p ëmpact of these (2) on ratio
’p ëmpact on Êrofitability ratios
5p
iscuss importance of cash flow statement in annual report to
’p Financial Analysts
’p Stakeholders
6p
iscuss the information provided in a typical cash flow statement included in annual
report
7p Êrepare
’p ualance Sheet
’p Êrofit and Loss account
’p Cash Flow Statement
’p
iscuss the nature of information
’p Shareholder needs
8 p Ê L shows profit two times of that which was budgeted ‘owever, the balance sheet
showed a bank overdraft that has increased dramatically
iscuss possible causes
and suggest ways to resolve the liquidity problem (‘ë
 Ê L vs C F )
 c


Most financial analysts consider ratio analysis to be a useful means of interpreting financial
reports Recently, many companies include profitability, liquidity and gearing ratios in the
voluntary reports that are in the Annual Report that is given to shareholders On the other
hand, however, it has been suggested that ratio analysis can prove to be a distraction

a)
iscuss this statement, considering the limitations of ratio analysis

 c
 

? p
iscuss Activity uased Costing Explain briefly its usefulness
iscuss overhead
apportionment
2 p
iscuss the difficulties that accountants face when determining the cost of products,
especially in a firm that produces a range of different products
iscuss the problems
that often arrive when overhead recovery rates are used to apportion overhead
costs to products
3 p
iscuss the applications of financial statement analysis that is useful to managers
4 p Êroduce a report that incorporates all the relevant costs and revenues that were
listed in Êart(u) of this question
5 p Company is considering launch of a new product List the type of information that
must be obtained to ensure that all relevant costs and revenues are considered
 c



? p
iscuss the benefits that arise from the preparation of the annual budget
2 p uriefly outline the process used to produce the annual budget for a MFR company
3 p
iscuss reasons why budgets fail and discuss ways in which the effect on the
organization can be minimized
4 p Êrepare a Cash uudget
5 p
iscuss the role of an accountant in an organization that MFR͛s and sells a range of
products
 c


? p Accountant͛s difficulties in the measurement performance, presenting managers

with useful information to enable them to measure performance
2 p hat information would be most appropriate to be provided to managers of
’p
iscretionary cost centres
’p Cost centres with output that can be measured
’p Êrofit centres
’p ënvestment centres
3 p ualance Scorecard
’p ënformation
’p uenefits
4p
iscuss the benefits of a firm that sells a range of different products and MFR͛s in
different countries
5p
iscuss and explain EVA MVA and discuss the advantages of these measures in
comparism with ROCE to measure profitability or performance
iscuss benefits and
usefulness
6p
ifference between EVA and Rë Calculate Rë
7p hen using ROCE for measuring performance, discuss the problems that must be
recognized