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3.

8: Assessment preparation
You are now in a position to start working on the assessment task. Remember, that
this is a summative assessment.
Please review the assessment outline document:

Summative Assessment
Open report (1,500 words)
You are a financial analyst and have been asked by a client to
provide advice based on relevant ratio analysis on whether to buy
equity shares in Tesco Plc, a supermarket based in the UK but with
subsidiaries and investments around the globe.

Your advice is to be based on your analysis of their 2019 annual


report. A copy of the reports can be found by following this link:
https://www.tescoplc.com/media/476422/tesco_ara2019_full_rep
ort_web.pdf

You do not need to calculate key financial ratios as these have been
calculated for you and are included as an attachment to this
assignment. You can calculate additional ratios if you consider them
helpful to your analysis and marks will be awarded for this.

1
• Marking criteria
The examiner will be awarding marks for your ratio analysis based on five main
areas:
1. Your ability to relate the ratios to the financial
performance of the business.
2. Your ability to study the accounts to find the information
you need.
3. Your ability to demonstrate an understanding of the
relationships between the ratios.
4. The ability to tailor your analysis to the needs of the user
group you are addressing. Make sure that you address the
specific concerns of the user in the question.
5. Your ability to arrive at a clear conclusion. Make sure you
base your conclusions on your previous analysis.

The report should include the following sections:


Section % Marks Available
1. Introduction and overall report coherence 10%
2. Comparative analysis of the company’s financial performance 55%
3. Recommendations and conclusions 20%
4. Limitations of the advice 15%

Once you have read the outline, please watch this video. It will give you some extra
guidance and tips for success.

What next?
In the next activity, you will have the opportunity to discuss with the other students any
questions you have about your understanding of the ratios you will be using to
complete your assessment.

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