Explain the structure of and terms used within the financial statements

Assignment Brief

Module Title:

Financial Decision Making

Module Code:

BM414

Assignment No/Title:

Assignment

Assessment Weighting:

100%

Submission Date:

To be confirmed

Feedback Target Date:

To be confirmed

Module Co-ordinator / Tutor:

To be confirmed

Course Area:

FD

Submission Instructions

This assignment must be submitted electronically via Blackboard by 2:00 PM on the submission date.

To submit:

1. Go to the e-submission area of the relevant Blackboard module.

2. Click Submit > Browse (locate the correct file) > Upload > Submit.

• You may resubmit your work multiple times before the deadline. Please note, resubmissions will replace your earlier submission, and you will not receive a new Originality Report for 24 hours after submission.

• A digital receipt will be sent to your Bucks email as proof of submission — please retain this for your records.

• It is your responsibility to keep a copy of your submission.

• By submitting your assignment, you confirm that you have read and understood the University’s regulations on cheating and plagiarism.

Assignment Details

• This is an individual assignment.

• Word Count: Maximum 3,000 words.

• Format: Formal report with a Bibliography/Reference List (books, journals, websites).

• Audience: Assume your analysis is for potential investors considering investing in Camden Limited.

Learning Outcomes Assessed

This assignment assesses the following module learning outcomes:

1. Explain the structure of and terms used within financial statements.

2. Apply management accounting techniques for planning, control, and decision-making within the organisation.

3. Calculate key accounting ratios and explain their significance to users of financial statements.

4. Demonstrate knowledge of the role of finance and accounting within an organisation, particularly in relation to reporting and decision-making.

Assignment Task

Company Context:
SKANSA PLC is a UK-based construction company, established in 1984, now planning to expand into Europe over the next 10 years.
You are part of the Accounting and Finance team. The company’s financial statements are attached for analysis.

You should incorporate any feedback or suggested amendments provided by your tutor during the assignment briefing.

TASK 1 – 1500 Words (40 Marks)

Prepare a report for SKANSA PLC management, critically evaluating the importance of accounting and finance functions within the company. Discuss the roles, duties, and responsibilities, using specific examples from SKANSA PLC where relevant.

TASK 2 – 1000 Words (50 Marks)

Using the provided financial statements of SKANSA PLC:

• Calculate the required financial ratios.

• Analyse and interpret the company’s performance from the perspective of a potential investor with £1 million to invest.

Presentation and Structure (10 Marks)

Marks will be awarded for the overall structure and presentation, including:

• Report format

• Clarity and professionalism of expression

• Appropriateness and accuracy of in-text referencing

• Cover page, contents page, introduction, and conclusion

• Page numbering

Assessment Criteria

The summarised financial statements of SKANSA PLC, a Public company engaged in Construction, are shown below:

Statement of profit and loss:

Task 2 - Required

Calculate the following five ratios for each of the two years:

1. Return on capital employed
2. Net profit margin
3. Current ratio
4. Average Receivable days/ Debtors collection period
5. Average Payable days/ Creditors collection period  (10 marks)

Comment on the performance of SKANSA PLC. results from and position between the two (2) years from (a), mentioning possible causes, reasons and effects for the changes in the ratios. (40 marks)