Evaluate the role and limitations of published financial statements and identify and use the information produced;

accounting report

7BSP0389-0206 AFO Assignment 2

Module Title: Accounting and Finance in the Organisation Module Code:

Assignment Format & Maximum Word count Case study and report

maximum 1

Submission Date/Time & Method: In Class Wednesday 10th January 2018

Report : Hand in 24th January 2018

Tutor Marking:

Assessment Criteria
Learning Outcomes: Knowledge and Understanding tested in this assignment:
1. Evaluate the role and limitations of published financial statements and identify and use the information produced;

3. Interpret key financial performance indicators and be able to use financial information to formulate future plans;

4. Analyse the role of sound financial management in the organisation;

5. Evaluate the financial requirements of a business or project;

Learning Outcomes: Skills and Attributes tested in this assignment:
6. Communicate effectively with financial and non-financial managers;

7. Present their ideas confidently and effectively on financial issues.

Feedback /Marking criteria for this Assignment
Performance will be assessed using HBS Grading CriteriaThe Marking Scheme is shown in the assessment task. Guidance for improvement will be given in writing on the assessment feedback form within 4 weeks. For further help, contact Rob Fletcher in his drop-in hour (Monday 10.15-11.15) or by email (r.fletcher5@herts.ac.uk). Late work and plagiarism will receive standard penalties. Turnitin is used to highlight student collusion or consider similarities to other work.

Detailed Brief for Individual Assessment

You are advising Boraka Engineering (UK) plc, a large company who are considering acquiring the whole share capital of Younger Machinery plc. Using the information given in the scenario below, you are required to write a report recommending whether or not your client should continue with the acquisition.

Background information:

Younger Machinery plc has been trading for over 75 years. Their main engineering plant is in South Wales but it has three other plants in the UK with the smallest one in Yorkshire, England…The company had been trading successfully but has been badly affected by the recession. As a response to increased competition and falling margins, the directors decided to restructure the business. They sold their smallest engineering plant in Yorkshire in July 2018.. In October 2018, they spent £750,000 on ‘retooling’ their Welsh plant and invested £600,000 on staff training. This change has resulted in 45 semi skilled workers being made redundant. The company now employs 333 staff of whom 12%come from European Union countries outwith the United Kingdom.


The sales director is pleased that they almost managed to achieve their sales targets for the year ended 31 December 2018, although they did have to offer some customers special discounts and extended credit terms as inducements.

You are given the following information for Younger Machinery plc and its competitor Jones plc, who are also an engineering company. You are also given figures for the industry averages for key indicators.