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Could you please help me with this problem?
Main company financial year ends on 30 September, comparator company financial year ends on 31 March. The new OBU rules is to use the most recent financial statements.
This is where I am having the problem:
Main company period is three years from Oct 2011 – Sept 2013.
Which of these years should I use for the comparator company, please?
a) Four years from 1 April 2011 to 31 March 2014
b) Three years from 1 April 2012 to 31 March 2014.NOTE!!! either of these choices is leaving one year from either of them not comparable to the other.
Thanks guys
@akonda – that is the way it goes sometimes but your reference period is the latest 3 full years of available FS for your main company and so to Sep 2013. You would be best off using the comparator for 3 years to Mar 2014. Just mention the difference in your limitations section. I may sort of mess up your graphs if you are trying to plot them together (advised) but you could either offset them by the 6 month difference for line graphs or use year numbers and explain this at the beginning of the analysis section e.g. Year 3 refers to Oct 2012 to Sep 2013 for main company but April 2013 to Mar 2014 for comparator for bar charts.
@trephena, thanks for the help. It will sort of clear up the mess. Am still trying to sort out my graphs as the years are different.
The issue now is the difference in currencies as Easyjet uses ££ and Ryanair uses €. Plotting these on the same graphs is so challenging because am not sure whether I can use both £ & € on the same graph. Would be able to advice me on this, please?@akonda most of your financial analysis apart from turnover and perhaps share price should be in percentages/ ratios rather than raw figures and therefore the currency issue should not be a problem.
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