ATHE L7 Unit 1: You are employed as a financial accountant for a medium-sized accounting firm in your local area: Corporate Reporting for Strategic Business Assignment

Assignment Scenario

You are employed as a financial accountant for a medium-sized accounting firm in your local area. You have worked for the firm for the last five years and had very positive feedback from your line manager and clients.

The firm has recently been reorganised and a number of vacancies have arisen for new departmental managers. You have decided to apply for one of the new management posts. As part of the selection process, you have to demonstrate your skills and ability and are required to submit a portfolio of evidence to the firm’s partners that demonstrates your abilities.

You have decided to complete the following tasks to include in your portfolio of evidence.

Task 1

You have decided to use the Annual Report of an international business, and any other supporting documentation, to write a report on how fundamental ethical and professional principles in relation to accounting standards and corporate reporting have been applied and the appropriateness of the financial reporting framework. You are free to decide upon which Annual Report you will use for this task.

Your report must:

• Explain the importance of professional behaviour and compliance with accounting standards
• Analyse ethical requirements of corporate reporting
• Assess the applications of the financial reporting framework
• Analyse the strengths and weaknesses of the financial reporting framework
• Extension activities

To achieve a Merit, your resource guide must compare and contrast the reporting of financial performance of different entities.

Learning outcomes and assessment criteria

LO1 AC 1.1, 1.2
LO2 AC 2.1, 2.2, 2M1

Task 2

You have decided to use the Annual Report in Task 1, and any other relevant information, to provide an example of a report you would send to a client who has asked you to interpret and make recommendations in respect of the financial statements contained in the Annual Report. The client has requested that, in relation to their current shareholdings in the company, your recommendations take into account both financial considerations and their wish to invest in companies which promote sustainable business practices.

Your report must:

Interpret financial statements using ratio analysis, cash flow and trend analyses
Make justified recommendations based on financial statement integration
Develop advice to the client regarding sustainability reporting, in particular, discussing the issue of double materiality
Extension activities

To achieve a Merit, your report must analyse solutions to current issues in financial reporting that may affect the interpretation of key financial statements.

Learning outcomes and assessment criteria

LO4 AC 4.1, 4.2, 4.3, 4M1

Task 3

You have decided to prepare a practical business case study showing how to prepare financial statements for groups of entities. You should explain how the financial statements have been prepared and show workings for all of your calculations.

Your case study must include:

Prepared group accounts including statements of cash flows
Prepared group accounts incorporating associates and joint arrangements
Prepared group accounts involving changes in group structures
Extension activities

To achieve a Merit, your case study must analyse the accounting requirements that relate to foreign transactions and entities.

To achieve a Distinction, your case study must evaluate the need to prepare detailed financial statements when changes in a group structure occur.

Learning outcomes and assessment criteria

LO3 AC 3.1, 3.2, 3.3, 3M1, 3D1