Reference no: EM133459959 , Length: word count:2000
Financial Accounting - Financial Analysis of a FTSE company
Assessment task: The assignment comprises a report which addresses the following:
Produce a financial analysis of a selected FTSE 100 company, in the role of an advisor for an investment bank.
Refer to your assessment details for further information.
You are required to follow the Harvard APA 7th edition referencing
style for in-text citations and the list of references. The list of references is not included in the word count.
FINANCIAL ANALYSIS OF AN FTSE COMPANY
PLEASE USE FAME TO DOWNLOAD THE ANNUAL REPORTS OF BOTH COMPANYS and work with years 2021 and 2022
Produce a financial Analysis of an FTSE 100 company in the role of an advisor for an investment bank.
Main company of study: ANGLO AMERICAN PLC
Company to compare with: RIO TINTO PLC ORD 10P
The main focus shouLd be on ANGLO AMERICAN PLC and subsequently adding RIO TINTO PLC as the need arises.
In the INTRODUCTION, Talk about attractive things that add value to the company(ANGLO AMERICAN PLC) for the investors. for example, what they do now and what their future plans are?
The company will be critically assessed based on;
Profitability analysis (example; Gross profit, ROCE, operating profit etc)
Performance (Dividend cover ratio, Dividend yield ratio, price earnings etc)
Finance stability or Cashflow Analysis (Gearing ratio etc)
Sustainability (Environment etc)
(Use 3 criteria that affect investment decisions each for of the each Parameters)
Conclusion should tell SACHS INVESTMENT BANK if they should invest in ANGLO AMERICAN PLC and critically explain the reason why they should invest.
Learning outcome 1: Explain systematically the purpose, conceptual basis, functioning and limitations of financial reporting and accounting harmonisation
Learning outcome 2: Apply the financial reporting concepts and professional technical skills to the processes involved in the preparation of corporate financial reports.
Learning outcome 3: Appraise and interpret the corporate financial reporting information prepared in an international context.
Learning outcome 4: Assess the relevance of the financial reporting framework as well as communicating the impact of changes and potential changes in accounting regulation on financial reporting
Learning outcome 5: Apply Information technology in evaluating the financial management data available to make decisions
Learning outcome 6: Formulate alternative investment and management strategies based on accounting data
Learning outcome 7: Locate, summarise and synthesise a range of information from electronic data sources relevant to the accounting and management discipline
You work for the Sachs Investment Bank. You have been asked to appraise the possibility of making a small-scale investment in a selected FTSE100 company. You are to provide a report to the board to evidence your conclusions. The SIB is keen to invest in companies that are not only financially responsible, but also value sustainability, as the Bank is keen to be a responsible investor.
The chosen FTSE 100 company should come from the London Stock Exchange
Do not choose a bank or financial institution as their financial statements are very complex. Download 2022 annual reports of both companies, your chosen company, and a competitor. Your report should contain the following:
• An introduction of your chosen company and a competitor,
• Critical analysis of the performance of your chosen company, comparing the most recent financial statements to the prior year,
• Critical analysis of the cash flows of your chosen company, comparing the most recent financial statements to the prior year,
• Critical analysis of reasons for changes in investor information, comparing the most recent financial statements to the prior year, along with an analysis of movements in share price of your chosen company, since the date of the latest financial statements, until 30th October 2022,
• A discussion on the sustainability reporting of your chosen company, and how this compares to its competitor
• A conclusion on whether you would recommend investment in your chosen company
Attachment:- Financial Accounting Assessment.rar