PER Performance objective 8

Hi,
Can someone please help me with understanding what is required in PER 8, specially elements a, d& f.
Description: You analyse financial statements to evaluate and assess the financial performance and
position of an entity.

Elements a. Assess the financial performance and position of an entity based on financial
statements and disclosure notes.
b. Evaluate the effect of chosen accounting policies on the reported performance and
position of an entity.
c. Identify inconsistencies between the information in the financial statements of an
entity and any accompanying narrative reports.
d. Evaluate the effects of fair value measurements and any underlying estimates on the
reported performance and position of an entity.
e. Conclude on the performance and position of an entity identifying relevant factors and
make recommendations to management.

For element a: What is meant by assess the financial performance of an entity? Does that mean calculating ratios and KPI?

Element d: Can someone please explain this to me please?

Any help is much appreciated.