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BM0075 Essentials of Financial & Management Accounting
2011/12 Semester 2 ICA 2 – Project Guidelines
Date of issue: Monday, 14 Nov 2011 Date of submission: Friday, 16 Dec 2011, 2pm
EFMA Project / Page 1 2011/12 S2
3 1. Project guidelines 1.2 1.4 1. Project case notes 3. Declaration form EFMA Project / Page 2 2011/12 S2 . Assessment criteria 5.CONTENTS 1.5 Outline Objectives Administrative guidelines Submission Grading 2. Project requirements 4.1 1.
under the supervision of your tutor. The financial statements of the private company will be published in CMS on 14 Nov 2011. as well as the country’s economic indicators.3.3. Project guidelines 1. Students will submit on a group basis a type-written report including a CD-Rom containing the spreadsheet computations. Use spreadsheet functions and compute ratios.1 This project is to be completed by each project group. (b) (c) (d) 1. Report writing and ability to integrate the various financial concepts and topics will reflect the level of understanding of the module. You tutor will announce the information on the listed company and inform you the assigned private company during your tutorial session in the week beginning 14 Nov 2011. Report and communicate the analysed accounting information. 1.2 Objectives This project seeks to provide the following learning objectives: (a) Compute. Research using online data retrieval systems like Reuters. comprising 4 to 5 students. EFMA Project / Page 3 2011/12 S2 .2 You are to use the financial statements of a private limited company (referred to as “private company”) and the financial statements of a company listed on the Stock Exchange (referred to as “listed company”) to do the project. The ability to work in a team is important. 1. Grouping of students will be randomised by drawing lots.1. 1. This project is designed for you to be resourceful and analytical.3 You are given approximately 5 weeks to complete the project.3 Administrative guidelines 1.3. its industry.1 Outline This project mainly covers the topics “Published Financial Statements – Financial Analysis” and “Statement of Cash Flow” taught in this semester. interpret & analyse published financial statements for decisionmaking. Bloomberg or Dow Jones and the Internet to obtain key business information on the company.
It is strongly advised that the presence of any inactive member must be brought to the attention of your tutor immediately at the start of the project for appropriate action to be taken. A project declaration form. students will consider their team members’ attitudes.4.4 Submission Your submission should include: 1. 1.5 Grading The project will be graded as follows: Project Report & Excel spreadsheets *Peer/tutor evaluation % 80% 20% 100% Evaluation basis Group Individual *In peer evaluation. group number and team members’ names. 1.4. Appendix to the written report. by 2pm to your respective tutors. and (b) the Statement of Comprehensive Income and the Statement of Financial Position of the private and listed company. sense of responsibility. Instructions will be given by your tutor on the day of the peer evaluation. duly signed by all members is to be attached and submitted together with the report. 1.4. maximum 10 pages. under “Project requirements” for the detailed requirements on the content of the written report and Excel spreadsheets.2. Please ensure that your CD-Rom is clearly labelled with your module group. Refer to Section 3. Use font size 12 with single spacing. 1. EFMA Project / Page 4 2011/12 S2 . 1.1 A written report.4 You must submit your project report and CD-Rom on Friday. 16 Dec 2011. The peer evaluation will be conducted during the tutorial session.5 You are to quote all sources of information and references in the appendix. Any late submission will have 10 marks deducted from the report for each day of delay.3.3. A CD-Rom containing the Excel spreadsheets on: (a) the financial ratios of the private and listed company.3. Any group(s) found to have plagiarised their report/or parts of their report will be penalised heavily and be dealt with the appropriate disciplinary actions. contribution and participation for the whole project. excluding appendices.1.
if any. Your parents told you that they have been approached by a relative who owns a family business. They gave you this company’s financial statements for analysis. giving three reasons to support your recommendation.e. You may also make the appropriate assumptions regarding the private company in your analysis and recommendations. including the relevant industry and the economic conditions which may be helpful in your analysis and decision making. and (ii) Compare the financial performance of both companies and make the appropriate recommendation to your parents based on the financial ratios analysis. Your parents informed you that they are only interested to invest solely in either the private or the listed company. EFMA Project / Page 5 2011/12 S2 . You will perform the following: (i) An analysis of the financial statements of both companies by calculating and interpreting the appropriate financial ratios for two years (current and preceding year i. offering them an opportunity to invest in his company. Project case notes Assume that your parents have just recently received a substantial sum of money from the en-bloc sale of their investment property. Financial Year (FY) 2011 and 2010). They plan to invest the monies by purchasing shares in a company. In making your recommendations. (iii) You should also include a brief introduction of the listed company and research any available information relating to the listed company.2. (referred to as the “private company”) They have also selected a company listed on the Singapore Exchange (SGX) (referred to as the “public listed company”) which they are considering to invest in and need your help to obtain the latest annual report of the company (from SGX website) for analysis. you should also consider qualitative factors and limitations of the financial statement analysis.
Include all ratios (subject to the availability of information) for the following: Profitability Liquidity Activity or Efficiency Debt EFMA Project / Page 6 2011/12 S2 . 2.e. data-entry) the Statement of Comprehensive Income and Statement of Financial Position of both the private and listed companies for the latest 2 years (i.e. For the listed company. Description Cover page – Name of listed company & private company.e. group members (including admin numbers) & module group Table of contents A list of tasks performed by each student 2. Part 2 of Report: 1. available in the Singapore Exchange Limited (SGX) website. (ii) Use the Excel spreadsheets of the Statement of Comprehensive Income and Statement of Financial Position that you have prepared above to compute the financial ratios for both companies for the last 2 years (i. FY 2011 and 2010) (Note: as per printed hard copy from sources) in Excel spreadsheets. FY 2011 and 2010) using formulae. Project requirements Part 1 of Report: 1.3. Introduction Financial Statement Analysis Background of project and brief explanation of your approach and state appropriate assumptions adopted. if any. Extract only Group figures from the Statement of Comprehensive Income and Statement of Financial Position to prepare your Excel spreadsheets. 3. the Statement of Comprehensive Income and Statement of Financial Position can be retrieved from the annual report of the company. (a) Contents Computation of financial ratios (i) Transcribe (i.
You should also highlight any limitations of your analysis. (b) Analysis of financial ratios In your written report.g. (c) Recommendations & Conclusions Conclude on the overall financial strength of the two companies.000 $ 1. Marks will be deducted if workings are not shown and the Excel spreadsheets on the financial ratios are not according to the format below.000 $1. Based on the ratio analysis. Relevant quotations from the annual report such as the Chairman’s statement or/and summary of results are highly encouraged.000.You are to state the formulae and compute all available ratios of the current and previous years by showing all the workings in the spreadsheets.e. You are not required to define each ratio. EFMA Project / Page 7 2011/12 S2 .000.500.5 Quick Ratio etc Attach the Excel spreadsheets on the financial ratios in your written report. Example of Excel spreadsheet on financial ratios Name of Private/Listed Company Ratio Current Ratio Formula Current Assets/Current Liabilities Extracted from the Statement of Financial Position of the private/listed company 2011 2010 $ 2. comment if the current ratio is better or worse off compared to prior year and give reasons to support your observation. recommend your parents as to which company to invest in and give three reasons to support your recommendation.000 = 2 = $1. analyse and interpret the financial ratios for each company based on the comparison of the financial statements for the latest two years (i. compute. E. You should interpret and analyse each financial ratio. Your analysis should not be generic and reasons given should be relevant to the industry in which your listed company operates.000.000 1. FY 2011 and 2010). You should support your recommendations with both quantitative and qualitative factors of the companies.
Hardcopies of the financial statements of the private company. 5.e. 4. EFMA Project / Page 8 2011/12 S2 . 3. Only relevant pages need to be submitted and they must at least include the Statement of Comprehensive Income. FY2011 and 2010) and conclude if the cash flows have improved over this two-year period. Part 4 of Report: 1. 2. Hardcopies of the Excel spreadsheets on the Statement of Comprehensive Income and Statement of Financial Position of both the private and listed companies. Statement of Financial Position and Statement of Cash Flow.Part 3 of Report: Statement of Cash Flow Analysis For the listed company only. you are required to: Give an analysis of the statements of cash flow for the two years (i. You are NOT required to prepare a Cash Flow statement. Appendices Quote of all sources of information and references. Project declaration form. Hardcopies of the annual report (relevant pages) of the selected listed company.
4. Assessment criteria Assessment will be based on the following: Written Report ( 80% ) Title page Table of contents Introduction List of task performed by each student Contents: Computation of financial ratios for two companies for 2 years Analysis & interpretation of financial ratios Recommendations & Conclusion Statement of Cash Flow Analysis Appendices 5 marks 30 marks 20 marks 10 marks 10 marks 5 marks ________ 80 marks Peer & Tutor Evaluation ( 20%) Tutor evaluation Peer evaluation 10 marks 10 marks 20 marks EFMA Project / Page 9 2011/12 S2 .
: Date: Student’s signature Name : Adm No.: Date: Student’s signature Name : Adm No. EFMA Project / Page 10 2011/12 S2 .: Please attach this form in the appendices of your project report.: Date: Student’s signature Name : Adm No. We understand that if we are suspected of plagiarism or any form of cheating. Date: Student’s signature Name : Adm No.: Date: Student’s signature Name : Adm No.Nanyang Polytechnic School of Business Management BM0075 EFMA 2011/2012 Semester 2 Project Declaration Form Declaration by Students We declare that this project has been based entirely on our own effort. we will be dealt with under the rules of the Polytechnic.
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