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Avoid too much unnecessary direct citation -this could be judged unacceptable and result in a fail. Have you read the OPEN TUITION Ultimate Guide to Referencing your RAP? This can be found on our homepage http://www.opentuition.com/obu
Paraphrasing and precis is about taking key points and expressing them in your own words and using fewer words. (There is an example of this in the referencing guide). Paraphrasing should be used throughout when using sources and only use direct quotes where absolutely necessary -this is explained in the Golden Rules in the Guide.
Hi all,
Please help with some clarifications.
Will the publishing industry category below include printing press and book publishers like McMillan, McGraw-Hill, Pearson etc?
“40301030 Publishing (5557 in older version) – Publishers of information via printed or electronic media.”
Can anyone please advise, If we have both consolidated and standalone financial statements available for the company of which we are preparing RAP (Topic 8); Which one to choose for our analysis?
Can anyone please advise, If I have both consolidated and standalone financial statements available for the company of which I am preparing RAP (Topic 8); Which one to choose for my analysis?
It depends to a certain extent what the group entails. If it has diversified holdings then standalone financials are better (however strategies, the identification of which are critical to a pass, will probably only be in the joint annual report)
The iother mportant thing is to be consistent and if using standalone for one you should use standalone for the comparator.
No – but do not translate currencies as this will introduce artificial differences based solely on the rate used.
The ratios mean that comparisons can be made mostly on the basis of these ratios (no currencies are involved as you would be using straight percentages) and comparison in revenue and share price are best done on year on year percentage increase/decrease differences
Thanks @trephena
Hi All.
My main company and comparator company both use the US-GAAP standard. Does this really have any effect or pose any challenge for my RAP?
I will be submitting my rap project in period 39. I would kike to ask some questions.
1) The companies I’m using have its financial statements in Euro and Dollars
My main company uses Euros, do i need to translate the comparator financial results?2) while financially comparing do i need to compare the financial results like this for a 3 year period i.e 2015-2016 , 2016-2017, 2017-2018 or 2016-2017, 2017-2018?
Please answer
RegardsPlease answer
Please think about this logically would for example dividend per share make any sense if you translated it? When doing trends and making comparisons your results may be influenced purely by the rates you used and so would you be making fair year on year comparisons for the company’s results if you were translating? Conceivably in the original currency revenue could show increases but if the exchange rate changed significantly between years these might even show a decrease after your translation so the trends could be very misleading. Also the company is not necessarily making strategic decisions based on exchange rates – particularly if their suppliers and customers are predominantly based in the same country.
If you read through previous posts you will find that ratios obviate the need to translate currencies and by attempting translation you would be introducing some artificial differences purely by introducing an arbitrary conversion rate anyway. The only time you cannot really use ratios are when looking at basic figures e.g. turnover and share price however it is fine to look at year on year changes for the individual companies here and compare trends. Otherwise stick to ratios (without any need to translate) as they make comparisons more valid.
The topic title clearly states you should be looking at a 3 year period but look at this on the basis of trends. Again think about it logically – the Board does not sit down on the first day of the financial year and make all of its decisions and plans and neither do these end on the last day of the financial year. Doing a strict year by year comparison between the companies does not make sense and again is not how things work in the real world!
Hi @gillianM
Thank you for you detailed response, it cleared many aspects.
1) As you said there is no need to translate the financials. So it is okay to insert the financials of the respective companies in the excel sheet in their original currency, right?
2) Can you please elaborate the 2nd part, like for e.g revenue improved from last year(2016) by 5% in 2017 and in 2018 3% as compared to 2017,
Or we have to state that revenue in 2016 increased by 4% as compared to 2015 and then carry on?Please answer
Regards
@theadiltaher said:
Hi @gillianM ,
Thank you for you detailed response, it cleared many aspects.
1) As you said there is no need to translate the financials. So it is okay to insert the financials of the respective companies in the excel sheet in their original currency, right?
2) Can you please elaborate the 2nd part, like for e.g revenue improved from last year(2016) by 5% in 2017 and in 2018 3% as compared to 2017,
Or we have to state that revenue in 2016 increased by 4% as compared to 2015 and then carry on?Please answer
Regards
Addition to 1) currency issue, what must we do if we have to present the data in bar charts, graphs etc. we can not simply compare the ratios, right? So is it possible to translate the currencies then and compare it?
What part of the instruction “Do not translate currencies” do you NOT understand?
You compare straight ratios calculated from the annual reports – and as explained these should not be translated -and to do so is WRONG because it introduces artificial differences that do not exist in reality!
I suggest that you re-read my answer
I am preparing for topic 8 Period 39 submission. I have a quick question about RAP. Can you please guide me on the following?
One of my friends failed RAP and he got comments like the website he referred was inappropriate, so how can I assure that the website I’m referring is appropriate?
One of the sources I’m using to gather information is Newspaper forums (e-sources). So do I need to enquire about the appropriateness of analyst/author who wrote the forums?
Hi Gillianm,
Thanks for spending time responding to this.
I’m planning for topic 8 period 39 submission. I have chosen to go ahead with 4010020 Automobiles industry, I chose main company as Bajaj Auto Ltd and competitor Hero Motor Corp or TVS motor.
The problems that I face are:
1) Main company and competitor are subsidiaries of a Group of companies. Is it an issue if it is a subsidiary in a group or if the group has diversified companies?2) Main company and competitors do have subsidiaries within themselves, will it be a problem if it has subsidiary companies within them and diversified subsidiary companies?
Thank You
Hello GilianM,
Hope you are doing fine.
I am planning to submit my RAP for period 39.
I have chosen IFAD AUTOS and AFTAB AUTOMOBILES, both companies are operating in Bangladesh. They come under Automobiles and parts. I have got the recent annual report for both these company year ending June 2018, however, both companies have third quarterly reports available. Should I do the ratio analysis for y/e June 2018 or I have to do it till third quarters end March 19.
Can you please guide ?
Hello GilianM,
Hope you are doing fine.
I am planning to submit my RAP for period 39.
I have chosen IFAD AUTOS (assemble truck, covered van, light commercial vehicle, and bus) and AFTAB AUTOMOBILES (assemble Toyota Land Cruiser soft top/ Pick-up, Land Cruiser Prado, Hino Bus, Hino Mini Bus/ Truck), both companies are operating in Bangladesh. I am not sure whether they fall under Automobiles and parts category.
Could you confirm me whether they fall under 4010 Automobiles and parts category?
Thank you
I am preparing RAP on T8 for Nov ’19 submission. A quick question regarding information gathering,
I have observed that in the Annual Report of the company I have selected have the prepaid expense of INR 4.18m in 2018 annual report but in the Annual Report of 2019, there are prepaid expenses of INR 16.17m in 2018 as a comparative.
This is the case for many figures like the cost of sales, Revenue, EPS, etc
I have read the full Annual Report but I couldn’t find any notes regarding the same.
Should I use figures of 2018 from AR 2018 or from Comparative of 2019 ??
Also if you can highlight the reason behind the inconsistency in figures ??
Sounds like figures have been restated. Take the figures from 2019 as they are the latest. There should be something normally in the annual report though….so I’m not sure why they are silent on this (possibly something in the quarterly statements that refers?)
You could mention this in your limitations and explain as the 2019 report is more recent you are going with that
Thank you @GillianM
I have came across one more question if you could guide on that also.
– Bibliography and list of references are the two different things. As bibliography refers as reading a wider area not cited directly.
My question is when I press an icon “create bibliography” in word it takes all the references so the bibliography and list of references looks similar. Theoretically I know the difference. But can you please guide on how to create list of references and bibliography in word?????
I can’t but there may be a You Tube video.
(The 11 page Reference list for my Masters Thesis and my fairly short bibliography were done manually [reflecting how we had to do things ‘back in the day’] -reminds me of a quip from a child who when told his Uncle Simon had made a particular model for a train set over 60 years ago asked ‘is that when dinosaurs were around?’ 😀
hi GilianM or Trephena,
can i know whether it would be an issue if two companies using different accounting standard (1st company IFRS, 2nd company US.GAAP)?
Ideally both companies should be using th same accounting standards. However where this is not possible you will need to mention it in your limitations section in Part 2 and again in any part of the analysis where different Standards interferes with or impact on the subsequent analysis
Hi Gillian and Trephena
May you kindly advise the extent of use of the comparative company. Initially ihad thought to use it only when comparing ratios as that had been muy understanding of the the instruction. However from the above chats I am not sure whether I should be comparing other business aspects also.
Further I would want to know if a company`s letter to investors in 2012 explaining a new strategy (which is still relevant) can be used and referenced. or it is against the instruction below
For your first submission or resubmission involving a new topic or organisation the programme requirement is that: You must use the last 3 years’ accounts available 90 days before the start of the submission period
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