Accounting for Leaders

Learning outcome 1: Demonstrate the following knowledge and understanding:

Knowledge of financial accounting theory and practice, and its application in the analysis and interpretation of the five financial statements in the business management decision-making context.

Learning outcome 2. Demonstrate the following skills andabilities:

Company - Gulf International Chemicals (it is registered in Muscat Security Exchange)

As a competitor for the company - Oman Chlorine

Critical analysis of financial statements.
Application of ratio analysis as strategically applied in the business context

You are to write a 1400-word report as though you were a consultant writing to the board of directors of a company considering buying shares in astock exchangelisted company of your choicefrom the Manufacturing sector. The board wants to assess your chosen company's performance over the past 2 years. Your report should cover the following:

(i) Evaluate the financial performance (using Profitability, Financial Gearing, and Investment Ratios) and other non-financial information of your chosen company to assess how the company has performed over the past two years. This should be an interpretation of the ratios NOT just the calculation of the ratios

(ii) Discuss how your chosen company's financial performance over the past two years compares with ONE of its main competitors (discussion of the ratios above of the main company with regards to the chosen competitor)

(iii) Conclusion - Discuss whether in your opinion the board of directors should back a new joint venture with your chosen company. You need to draw on your analysis discussed in (i)&(ii) above

Analyze financial data and other relevant information of an organization and refer to relevant literature to form a judgment on the relative performance and the effectiveness of management in meeting the strategic corporate objectives in a given scenario.

The work demonstrates excellent in-depth knowledge of the background of the chosen company, is able to evaluate the financial statement of company, and compare the company performance to competitors, is able to critically discuss the limitations of ratio analysis and is able to arrive at a reasonable conclusion.
Very high level of competence in analyzing and interpreting complex or incomplete data and in communicating the outcome
There is clear evidence of extensive independent study and thinking.
The work is at, or informed by, the forefront of theoretical understanding in the field of study.
The work demonstrates an ability to present confident, tightly structured, stimulating, and rigorous arguments that show a high level of academic ability.

This assignment will cover what is taught in BS1, which is;
Interpret and critically appraise the main financial statements: the profit and loss account, the balance sheet and a cash flow statement.
Financial statements analysis and interpretation. Ratio analysis and performance measures.