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on what basis we have to select the second company for analysis? Any listed company or the company should have a specific criteria? If there is a criteria then what is it?
My recommendation for competitor selection is its listed status and company’s performance must be challenging your main company. Further, you should have its annual reports including financial statements to be provided to OBU in RAP. Comparison should be like with like with reference to operations, geography and comparing consolidated with consolidated & unconsolidated with unconsolidated accounts. Rest is your choice.
Regards,
Hammad Ahmed Qureshi – OBU Registered Mentor.@hammadahmedqureshi now your reply made is more complecated for me to select the second company because i want to analyse GSk who is earnring in billionsi in Pakistan where on other hand, all the listed companies are earnring in millions. :/
can you help me to select the company against GSK Pakistan? while how does this ICB thing works?
@hammadahmedqureshi do you think Highnoon with Sanofi would be a good selection?
It is not financial numbers that you will compare but relative figures such as %, ratios, trend in performance etc. So, you can compare a million earning company with billion because a billion earning company with loss is worse than a million earning profitable company. Its about performance not numbers.
Highnoon and Sanofi is also a good choice but it all depends on you. Further, my point was that their performance challenge your main company not it should earn same.
Regards,
Hammad Ahmed Qureshi – OBU Registered Mentor.You may find the posts on https://opentuition.com/topic/comparator-company/
useful as it sets out the sorts of things you should consider before making your final choiceAlso the topic on whether problems with financial statements and whether they are comparable may help you with your selection. (I think there may also be a section in the OBU information pack about putting your company in an industry context – something I touch upon in the article on Evaluation on our homepage – so read those too)
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The company i have chose is listed but the competitior is not listed is that ok?
@salman1 – you will have to provide the financial statements for any comparator so if you won’t be able to do this then the comparator is not suitable. Normally similar sized companies are listed but there are some large companies that are not plc’s eg Virgin Atlantic. Otherwise if the size difference is too large, performance comparisons are not so valid.
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Thank you for the prompt reply. I have chose British Airways. What you think should be the best competitor ? any suggestion? I looked Virgin Atlantic but they dont have three years annual report. Every company which i choose dont have annual reports showing on their website 🙁
Hi all,
I submitted my RAP on topic 15 in period 31 (Nov 2015) and failed. I am going to resubmit my RAP again, perhaps on this May 2016, still under Topic 15.
As I am confusing at some points, could you please give me answers on several questions?
My questions are:
1. I passed SLS and failed on RAP, so If I resubmit on the same topic, with the same organisation, I would have to submit my RAP and relevant proofs of calculation, and I will not have to resubmit my Presentation and SLS. Did I understand it right?
2. For new requirement on using Industry Classification Benchmark, “apply to students submitting for the first time or for students changing topic in both the May 2016 (Period 32) and November 2016 (Period 33”.(accaglobal). So for resubmitting purpose on the same topic like I am going to do, I am not required to using this ICB, right?I am looking forward to your reply, thank you so much.
Hi there i have looking on lufthansa air line and i have noticed that on there website they have annual report and other is financial statments. Both are differente one is cosolidated and other is not. Which one should i use should i go for consolidated financial statements and compare with the consolidated one?
@asalman1 said:
Thank you for the prompt reply. I have chose British Airways. What you think should be the best competitor ? any suggestion? I looked Virgin Atlantic but they dont have three years annual report. Every company which i choose dont have annual reports showing on their website 🙁I have chosen KLM as BA’s comparator
@Tuan Anh – yes you are right on both counts: No presentation and no SLS required and no restriction on topic provided you resubmit on the same company you used before.
Hi, i want to know that in T8, I chose a company that has consolidated f/s. In my financial AND business analysis, where do i have to explain the effects of subsidiary eg in what areas and how to mention subsidiary issues?
@ricko -you need to be consistent either group level for both companies or individual company compared with individual company.
Please note: I have created a special forum topic for airline specific queries so please use that if you (or any students) have any further questions that are related to using an airline fir Topic 8
Thank you I am comparing Cosolidated group financial statements with consolidated ones. Please pase link here of Airlines queries Thank you
@makinbabu said:
Hi, i want to know that in T8, I chose a company that has consolidated f/s. In my financial AND business analysis, where do i have to explain the effects of subsidiary eg in what areas and how to mention subsidiary issues?On any area or aspect of the company’s performance that has been significantly affected by the performance of a subsidiary, eg if revenue has increased/decreased as a result of one subsidiary’s performance mention that and also mention why the performance has changed in that subsidiary. basically the subsidiary can affect any performance ratio be it profitability, liquidity, efficiency
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Hi,
I have decided to select two foreign multinational pharmaceutical companies after I observed that our local pharmaceutical companies do not provide adequate information. From my review, I observed that both companies have different currencies and do not operate in the same country. One is located in the UK and the other in France. The Company in the UK uses the dollars as its functional currency whilst the company in France uses the Euro.
Would this affect my chances and analysis?
Is Verizon vs At & t or United Airlines vs American Airlines a good company to select for RAP?
Thank you for your response Trephena.
I am planning to do research on topic 08. I was thinking of selecting At & t & Verizon (competitor) or American Airlines & United airlines. Could you please suggest me which one is better? Or should I change the organizations?
Please read through the replies above to help you decide. It is impossible to tell you which companies to select as much depends on your own interests, any insider knowledge or contacts you may have and your access to available information. ( For example I am biased towards airlines as I worked in that sector and it interested me even though I also have had some experience in the telecoms sector but was less enthused about it).
i have a query regarding a situation in gsk pakistan financial statement,
in 2015 there was discontinued operation of a segment and financial statements have been restated of previous year1. should i use the financial statement of 2014 in the annual report 2014, or restated one in 2015
2. with regards to inventory turnover calculation im having an incorrect answer for 2015, whichever value im using , could u give me any tips how i culd find the calculation or how i could go about it
thanks alot
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