Unit 5 Accounting Principles Financial Portfolio Analysis for Global Tech Assignment Brief 2025

Submission Format

• This assignment should be a financial portfolio, prepared in a Word Format using Arial or Calibri font, size 12. The portfolio should be accompanied by an Excel Sheet containing all financial calculations.
• Language used should be formal and with professional terminology.
• No text should be placed inside text boxes. No page borders should be used. Work that makes use of text boxes or page borders will not be accepted and returned to the learner for correction and resubmission in the correct format.
• You are required to make use of headings, paragraphs, subsections, and illustrations as appropriate, and all work must be supported with research and in-text references using the Harvard referencing system. Please include references at the end of the assignment using the Harvard referencing system.
• Start each answer on a new page, and pages should be numbered. please highlight each question.
• The recommended word limit addressing all the tasks is 4500 words, with a +/- 10% margin, although you will not be penalised for exceeding the total word limit.

Vocational scenario

You need to carefully read all instructions before attempting any of the tasks. The assignment must be addressed concerning the learning outcomes 1 to 4. You will be assessed through the Financial Portfolio that will be submitted under pass, merit and distinction criteria.

Scenario:

Global Tech Solutions is a rapidly expanding technology company specialising in cloud-based solutions for small to medium-sized enterprises (SMEs). They have experienced significant growth in recent years, but their accounting and financial processes are struggling to keep pace. They have hired your consultancy firm to assess their current financial standing and provide recommendations for improved financial management.

Assignment Activity and Guidance

Tasks & role:

You are a financial analyst at an accountancy and financial services consultancy. Your senior manager has assigned you to lead the Global Tech solutions project. You will be responsible for creating a comprehensive 'financial assessment report' to be presented to the company's executive team. They have given you the activity to assess the financial reports of various business units and investigate the best route forward. Your recommendations should be based on support from the financial statements. You will do this by creating a 'financial portfolio' with supportive financial statements to share with the senior management of the organisation.

Activity 1: Purpose And Role of Accounting in Global Tech (LO1)

Your senior manager wants you to start with an internal memo explaining to the Global Tech Solutions team why accounting is important. The memo will be used to educate the importance of accounting to all staff in Global Tech Solutions. In your memo:

• Examine the importance of accounting function and categories, including cost accounting, management accounting, and financial accounting within an organisation. Explain how each category supports decision-making, performance measurement, and overall organisational success for Global Tech.
• Discuss the regulatory environment impacting Global Tech solutions. Explain how corporate governance impacts financial reporting. Discuss the ethical considerations that the accounting team needs to adhere to.

The evaluation should be drawn from a critical perspective where you look at the different sides of the argument, presented by various authors. The evaluation should assess the usefulness of these functions by examining their strengths and weaknesses with evidence from different perspectives in the form of an argument, making a valid conclusion. The purpose and context of these accounting functions should also be evaluated critically on how they meet the organisational, different stakeholder and societal needs and expectations at large regarding informed decision-making in complex operating environments.

Activity 2: Preparing Financial Statements for Global Tech Solutions (LO2)

Provided below are the trial balances for (1) sole trader, (2) partnership (3) clubs and societies organisation. You are required to prepare financial statements from the data below. Explain how these financial statements meet the accounting principles, conventions and standards set. The financial statements should also include appropriate adjustments as required. Using the information given for the three different independent business units, prepare the financial statements. You will also need to address how the financial statements meet accounting principles. After preparing the financial statements as directed, you are required to critically evaluate the financial data to assess the financial performance for Global Tech and present your recommendations based on justified conclusions drawn from the financial data calculated.

Scenario 2: Simplified Sole Trader Tech Startup Division

Imagine Global Tech Solutions started as a small sole trader before becoming a large company. Below is the trial balance as of December 31st, 2024.

Additional Information:

• Depreciation for the year on equipment is £1,500.
• Salaries accrued but unpaid at year-end are £2,000.
• Office supplies on hand at year-end are valued at £500 (already included in the 

Required for Scenario 2A:

a) Prepare an Income Statement for the tech startup division for the year ended December 31, 2024.
b) Prepare a Balance Sheet as of December 31, 2024.