October 17, 2014 at 2:35 pm
Am I required to extrapolate Jan financial statements till Mar by adding quarter accounts???
Can I compare marks and Spencer with next plc???October 17, 2014 at 3:10 pm
@yamna – no need to extrapolate just use the annual reports because they are close enough – extrapolation is never mandatory just the use of the latest full year accounts is.
Yes you could compare these two but remember that M & S has an important food and grocery segment and also a financial one and Next doesn’t. There is no perfect match. Possibly the closest match in terms of segmentation and customers would be John Lewis (they have diversified into Insurance) but that is a partnership so your investor section would be different as you would have to compare returns to shareholders with ‘partner’ bonuses. Also of course their regulatory frameworks are different but that should not in itself impact much if the same sort of information is available for both.October 18, 2014 at 12:46 am
Trephena please guide me in company’s selection (some options of most suitable company’s for analysis)….October 19, 2014 at 11:04 am
@yamna – This is something I am reluctant to do as I think the choice should be a company the student is interested in and genuinely wants to find out more about it. However I really think you could go for M&S and John Lewis as the latter does make its annual report publicly available….and before you ask there wouldn’t be a problem with it having an April 2014 year end – it is near enough.
For anyone just reading these forums for ideas for future RAPs, JL would be suitable for T17 and especially T20 as the organisation prides itself on good governance and being a stellar corporate citizen and was founded on these principlesOctober 19, 2014 at 5:37 pm
hi need the help !!!!
please tell me as soon as possible should i use consolidated f/s or single company f/s
i am almost done with typing in single company f/s in excel sheets of competitors and company i chose and left with ratio analysis only.
so should i go with single company f/s or consolidated f/s????
reply as soon as possible
thanks in advanceOctober 19, 2014 at 10:55 pm
@awais21 – I have seen RAPs passed on either approach taken by students. You work needs to be coherent and hang together properly so that it reads well and explanations are clear. So much may depend on how good the CEO and directors reports are and other information available – if these are better for the group then I would go for that and the group approach tends to give more scope for the SWOT& PESTLE too.October 20, 2014 at 5:29 am
Whenever we are quoting anything from book, web page, directors’ report etc. will it be exact words or we have to write in our own words. Is there any percentage defined say 30% can only be quoted rest should be our words.
Can we use material from Wikipedia?
If we are quoting anything from ACCA books, how we will cite it as there is no edition reference nor writer name?October 20, 2014 at 11:10 am
thankyou very much for the answer.
u r doing great service to people like me who are wandering around.
Keep up the good work
RegardsOctober 20, 2014 at 11:12 am
1.When typing the financial statements into excel do I have to have different excel files for statement of financial position and the Comprehensive income or do I put them in as sheet 1 and 2 in the same excel file?
2. I am almost 50% through my Rap but wanted to enquire on the 3 year analysis as I type in excel do I have a column for 2013, 2012, 2011 which looks like an analysis of 2 years 2011 to 2012 and 2012 to 2013 or do I type in 2013,2012,2011 and 2010?October 20, 2014 at 11:15 am
If comparative figures are restated than ratios will be calculated on restated amount or on the original figures?October 20, 2014 at 12:55 pm
You must use latest figures (restated) in your RAP.October 22, 2014 at 1:23 pm
Mostly companies use a format for SOFP in which assets are at the top and then equity& liabilities at bottom. It is opposite in the case of my company, equity and liabilities are at the top and assets at the bottom. I have produced the extracts as they are in the annual report, in an excel file i.e. equity&liab top, assets bottom. Does this matter ?
please do replyOctober 22, 2014 at 3:17 pm
@anneq7 – no this does not matter.
Banks always traditionally used to show their most liquid assets first in their BS. So current assets always came before the fixed assets (I have no idea if this is still the case as I have better things to read than financial statements!!! 🙂 )October 23, 2014 at 7:02 am
I have read somewhere that if using CEO strategic report (from FS) can put CEO,2013 for instance. I though that when we are citing we have to use the author (a single person or a corporation). As financial statements are prepared by the “company” as such should not we use the company name when citing and then on the reference list specify the CEO, company or whatever? I’m confused!Thanks!
AmarainOctober 23, 2014 at 9:22 am
@amarain Hi there!
References are a bit like court evidence, they should be as accurate and complete as possible. So you should always try to identify the actual author if there is one e.g. if a newspaper article has the journalist’s name use that not the name of the newspaper (don’t panic everyone if you haven’t – I am stating ‘best practice’). So in the example you cite ‘CEO XYZ, 2014’ is best if you are specifically referring to the CEO report. With the FS they are actually prepared by auditors for the company as a whole so using XYZ 2014 is fine – Think about it a lawyer helps a witness to prepare a witness statement but it is still attributed to the witness not the lawyer.October 25, 2014 at 6:37 pm
Is it necessary to find out efficiency ratios like payable days, inventory days etc?
ratios i am using are as follows
dividend yield, payout ratio,eps,p/e
and d/e and interest coverage
are these enough or efficiency ratios should also be there??October 25, 2014 at 6:57 pm
@awais – it very much depends on the company. I always recommend scouring the highlights that the directors report each quarter and at year end on the company website as they often include industry specific KPIs and these are what turn a same-old, same-old analysis into a more intelligent and appropriate one.
If the trends for payables and receivables are stable then that is about all you need to comment on and compare.October 27, 2014 at 6:41 am
I am in big trouble as I selected a company whose year end was June and I chose a competitor whose year end was December. My mentor didn’t notice that neither that I. I have just seen that and my project is all most complete.I tried to contact my mentor but he is on a vacation. What should I do? Please guide me I m in big trouble…….October 27, 2014 at 7:42 am
October 27, 2014 at 9:46 am
Thanks for your reply.
I have read your response to @akonda but my point is this that I have done ratio analysis according to the annual financial statements. The difference between both these companies is 6 months. What should I do now? Should I add the Comparative financial statements of the two quarter to the june company to bring it to december 2013 or what should I do ? and if I continue without changing anything then what reason should I state???
Your response will be highly appreciated.Thanks!October 27, 2014 at 10:39 am
@ naveedullahwardak – am I missing something here as to me your prob and @akonda‘s appear to be identical?…. No you don’t need to bother with adjusting the accounts and bringing in quarters unless you want to. As long as you are using the very latest full year audited accounts in accordance with the latest info pack for your main company there is no problem. So if the June 2014 statements were in the public domain you have got to use them and the 3 years up to then otherwise it will be an automatic fail.
So read the rules as markers seem to police this rule stringently 🙁October 27, 2014 at 5:59 pm
if we don’t use latest financial statements would the examiners fail me?? As i am using 2010-2013 financial statements and 2014 statements are available now but for that i have to change major portions of my analysis and i don’t have much time for that to do. Also in my first attempt i used 2009-2012 statements and at that time 2013 statement was available but examiner didn’t said a word about that and praised my analysis.October 27, 2014 at 6:12 pm
Extract from Information Pack:
The programme requirement is that you use the last 3 financial reports that are
available, or will be available, at the start of the submission period. If the results are
not going to be published in time for you to include them in your report, then you
should use the previous 3 year’s results. The Programme Director has advised that
any Company results that are published (in any form) less than 90 days before the
start of submission do not have to be used.
Please refer pg. 39 (pg. no mentioned in bottom of page) of Information Pack for further detail.
PS: Students must read Information pack as answers of most of their queries already provided there.
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