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can some one give me better suggestion in how to score maximum marks in intreaptation analysis.I face difficulty in consolidated analysis
Ratio analysis and interpretation (intreaptation) questions are secondarily matters of number crunching and primarily a matter of trying to suggest reasons why those ratios have moved.
How active and imaginative is your ability to find reasons?
Scoring good marks in these questions is down to your ability to find the possible causes for the movements
In a group context, ratios could be affected by the dealings of the two entities and intra-group trading activities, by new finance charges as the parent lends money to the subsidiary, by new finance charges incurred by the parent in servicing the loan notes issued as part of the purchase consideration, by intra-group transfers of assets at an over- / under-valuation
Let your imagination fly free as a bird and apply common sense to the ratios when trying to suggest reasons for change
And next time you feel the need to ask a question like this, try to do so more than 20 hours before the start of your exam!
OK?
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