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    9706_y05_sw_3

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    FarHan Aquarius
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    5 views2 pages

    9706_y05_sw_3

    Uploaded by

    FarHan Aquarius

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    © All Rights Reserved
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    of 2

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    Unit 3: Financial Reporting & Interpretation

    s
    .c
    om
    Syllabus
    Learning Outcomes Suggested Teaching Activities Resources Online Resources
    Section
    Interpretation Students will be able assess Introduce students to the pyramid of ratios and (Randall, 2005, chapter 28) http://www.bized.ac.uk./compf
    and and comment on the quality of demonstrate the relationships between them. act/ratios
    analysis the performance of companies (Randall, 1996, chapter 24
    by comparing trends studying Calculate ratios from the information obtained questions)
    inter-firm comparisons. from the published accounts obtained from
    companies. The students should discuss the (Wood & Sangster, 1999a,
    reliability of the ratios they have calculated. chapter 33 & 44 questions)
    What further information do they require?
    Where may they find it? (Wood & Sangster, 1999b,
    chapters 34 & 35 questions)
    Give particular attention to
    • the model for each ratio (Wood & Sangster, 1998,
    • expressing ratios as percentages, monetary chapter 15 questions)
    amounts, true ratios, times etc. trend
    analysis and inter-firm comparison the CIE papers 9706/04 June
    relationship between the primary ratio and 2003 Q1 (b)(c), 9706/04 Nov
    the secondary ratios concise and 2003 Q1, 7110/02 Nov 2002
    informative comments on uses of, trends in, QS 2 and 5 & 9366/02 Nov
    and comparisons of ratios. 2001 Q2

    Company Students will recognise the Describe the various sources of finance and (Randall, 2005, chapter 29)
    financing various sources from which their suitability and limitations; the need to
    companies’ activities are finance long term investment from long term (Randall, 1996, chapter 25
    financed. They will understand sources. Explain “window dressing”. exercises)
    the importance of the finance
    being obtained from suitable Students should examine companies’ published CIE papers 7110/02 Nov
    sources. accounts and note how long term requirements 2001 Q1 & 9706/04 June
    have been financed from long term sources. 2003 Q1(d)
    What are they? What short term sources are
    being utilised?
    Does the audit report state that the company is
    relying heavily on short term finance? Is there
    any indication that the company may become a
    non-going concern (often referred to as a ‘gone
    concern’!)?

    Give particular attention to


    • the uses of short, medium and long term
    form of finance
    • the limitations of financial statements in the
    context of this topic
    • window dressing the value of forecasts and
    budgets.

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