financial statement management assignment

8/17/2019 Financial Statement Management Assignment

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Finance for Strategic Managers Assignment

Scenario

You are a longstanding manager in a family firm which is a small but growing organisation. Your

particular responsibility is finance. A new member of the family has just joined the firm fresh fromcompleting a post graduate (level 7) qualification at college. He is clear that in order to ensure the

business’s continued success he must develop the financial skills required to assess and manage

finance within the business. He wishes to begin by understanding the role of financial information in

business strategy and given your experience he has asked for your advice.

Heintends to create a file on finance for strategic managers which he can use as an aide memoire.

Activity 1

Prepare the first section of the file providing examples where appropriate.

This must have the following sub sections

1. an assessment of why financial information is needed in business

2. an identification of the business risks related to financial decisions

3. a summary of the financial information needed to make strategic business decisions.

Assessment Criteria 1.1/1.2/1.3

Activity 2

The second section of the file must provide information on published financial statements. You must

include at least one actual example of published accounts in order to illustrate the points you are

making. This section must include

1. an explanation of the purpose, structure and content of published accounts.

2. your interpretation of the financial information in these accounts

3. a calculation of the financial ratios from the accounts and an explanation of how they support

strategic decision making

Assessment Criteria 2/1.2/2.2/3

Activity 3

The new manager has made it clear that he needs to understand how businesses assess and finance

various activities. The next section of the file must therefore cover

1. an explanation which clearly distinguishes between long and short-term financial

requirements for businesses

2. a table comparing the sources of long and short term finance for businesses

3. an examination of cash flow management techniques and an assessment of why themanagement of cash flow is so important.

Assessment Criteria 3/1, 3/2, 3/3



Task 4

As the business is growing, the new manager wishes to have a section of the file which considers a

number of issues related to expansion

In this section of the file you must

1. consider different business ownership structures and analyse the corporate governance, legal

and regulatory requirements of these. For each of these structures compare and contrast the

roles and accountability of owners and managers in making decisions.

2. carry out an evaluation of methods for appraising strategic capital or investment projects.

Assessment Criteria 3/4, 4/1, 4/2



Guidelines for assessors

The assessment criteria for the unit specify the standard a learner is expected to meet. They

demonstrate that the learning outcomes have been achieved. The suggested evidence listed below is

how learners can demonstrate that they have met the required standard.

Task number ACs Suggested evidence

1 1.1/1.2/1.3 This section of the file must include an explanation and

assessment of why financial information is required and where

it is used in business. The learner must also clearly identify the

business risks and how they are inter related with financial

decisions. This task also requires the learner to provide a

comprehensive summary of the financial information required

for strategic decision making.

2 2.1/2.2/2.3. In this section of the file the learner must demonstrate their

ability to analyse published financial statements and accounts.Using this data learners must:

clearly explain the structure and content of the

accounts and why they are important.

produce a thorough analysis of the financial

information

calculate financial ratios and clearly show how they

support strategic business decisions.

3 3.1, 3.2, 3.3 The learner should explain the meaning of long and short termfinancial requirements and clearly show the difference between

them. The table must be comprehensive and show different

financing methods appropriate to different types of assets.

There needs to be a range of techniques to manage cash flow

and the learner must show their understanding of the critical

nature of cash flow management.

4 3.4, 4.1, 4.2 In the final section the learner must demonstrate their

understanding of different ownership structures and the

implications of these. The learner should analyse a range of

different ownership structures. For each of these the learner

must analyse the governance, legal and regulatoryrequirements. There then needs to be a clarification of the

roles of owners and managers in each structure which also

compares and contrasts these roles and their accountabilities.

There must be a balanced and thorough evaluation of the

appraisal methods for strategic capital and investment

projects.

financial statement management assignment

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