WRITING YOUR ASSIGNMENT:
• This assignment must be completed individually.
• You must use the Harvard referencing system.
• Your work must indicate the number of words you have used. Written assignments must not exceed the specified maximum number of words. When a written assignment is marked, the excessive use of words beyond the word limit is reflected in the academic judgement of the piece of work which results in a lower mark being awarded for the piece of work (regulation
6.74).
• Assignment submissions are to be made anonymously. Do not write your name anywhere on your work.
• Write your student ID number at the top of every page.
• Where the assignment comprises more than one task, all tasks must be submitted in a single document.
• You must number all pages.
SUBMITTING YOUR ASSIGNMENT:
In order to achieve full marks, you must submit your work before the deadline. Work that is submitted late – up to five working days after the published submission deadline – will be accepted and marked. However, the element of the module’s assessment to which the work contributes will be capped with a maximum mark of 40%.
Work cannot be submitted if the period of 5 working days after the deadline has passed (unless there is an approved extension). Failure to submit within the relevant period will mean that you have failed the assessment.
Requests for short-term extensions will only be considered in the case of illness or other cause
considered valid by the iCentre Adviser. Contact iCentre@lca.anglia.ac.uk. A request must normally be received and agreed by the iCentre Adviser in writing at least 24 hours prior to the deadline.
Mitigation: The deadline for submission of mitigation in relation to this assignment is no later than
five working days after the submission date of this work.
ASSIGNMENT QUESTION.
A potential investor in Bovis Homes Group plc does not understand the performance and position of the business as shown in its Financial Statements for the year ended 31 December 2018. You have been approached for the following advice:
a) Calculate ratios for profitability, liquidity, efficiency and gearing for the years 2018 and 2017.
b) Analyse the performance and position of Bovis Homes Group based on the above ratios.
c) Discuss how accounting standards aid the reporting of useful information within Bovis Homes Group annual reports for 2018.
The total word limit for this assignment is 2,500 words. This is spread between the 3 sections a) to c) in proportion to the marks available. Thus, the word limit for part a) is 750 words part b)1,000 words and part c) 750 words. The word limit in part a) is notional only,ie; you are required to produce ratios, without any extra accompanying narrative required. You may not transfer any of the word limit in part a) to use in part b) or c).
In part a) above:
• The calculation of ratios must be shown, not merely the result.
• Use the figures given for the group, not the figures for the parent company.
In part b) above:
• Stating that a ratio has increased or reduced attracts no marks.
• Stating that a ratio has improved or worsened attracts marks but not a pass mark.
• Listing generic causes of ratio changes unrelated to Bovis is worthy only of a basic pass mark.
• Identifying specific causes and effects of ratio changes for Bovis attracts a good mark.
• Precise analysis of issues in depth, placing ratios in context with one another and identifying which issues are significant and which are insignificant attracts an excellent mark.
• The comments made should demonstrate an understanding of accounting standards.ie; show how accounting standards requirements have contributed to the ratio figures.
In part c) above:
• Discuss the Conceptual Framework requirements.
• Provide examples of specific accounting standards following the principles of the Conceptual Framework.
• Identify specific examples of Bovis following accounting standards, which leads to useful information. These examples should support your discussion.
The financial statements of Bovis are on pages 119 to 150 of its annual report for the year ended 31 December 2018. Information on other pages of the annual report is not relevant to this assignment. Sections particularly relevant to part c) of the requirements are on pages 123 to 125 and the accounting policies highlighted in blue eg; revenue policy on page 126, inventory policy on page 128, trade receivable policy on page 129, bank
borrowing policy on page 131 and income tax policy on pages 135 and 136. For all sections, use figures for the group, not the parent company.
To achieve a pass level mark you must consider approximately 10 ratios spread acrossthe areas of profitability, liquidity and gearing. You must show the calculation of your ratios, not merely the result, including for any earnings per share figure you may chose to calculate. Analysis of ratios should not only compare the ratio for 2018 and 2017 but also suggest valid causes and effects for changes in ratios. You should describe and explain
how accounting policies used by Bovis affect the performance and position of Bovis as shown by the accounting ratios. This will require secondary research.
To achieve higher marks, in addition to the requirements to achieve a pass mark, you will need to move beyond generic comments when analysing ratios and identify with greater accuracy the specific issues within Bovis relevant to the ratios calculated. Greater placing of facts in context is required. Additionally, you must evaluate knowledge gathered from a range of academic sources to evaluate Bovis compliance with both accounting
standards and the Framework, illustrating your points with examples of actual reporting practice at Bovis. Secondary research will therefore be required.
ASSESSMENT CRITERIA
Task a) assessment criteria:
• Knowledge and understanding of financial reporting information contained in Statement of Profit and Loss and Other Comprehensive Income, together with Statement of Financial Position and Statement of Changes in Equity.
• Ability to identify and apply appropriate information within the calculation of financial ratios for the London Stock Exchange quoted public limited company stated within the assignment question.
Task b) assessment criteria:
• Knowledge and understanding of the financial reporting requirements for figures within a Statement of Profit and Loss and Other Comprehensive Income, together with Statement of Financial Position and Statement of Changes in Equity.
• Ability to analyse the financial performance and position of the London Stock Exchange quoted public limited company stated within the assignment question.
Task c) assessment criteria:
• Knowledge and understanding of the accounting standard stated within the assignment question and the Conceptual Framework.
• Ability to evaluate the compliance of the London Stock Exchange quoted public limited company financial reporting with the accounting standard stated within the assignment question and with the Conceptual Framework.
You must be mindful that marks will be allocated based on your knowledge, understanding, ability to define, explain, apply, analyse and evaluate the key concepts.
In total there are 30 marks for understanding and 30 marks for applying spread across each part a), b) , c) of the assignment.
In total there are 20 marks for analysis in part b) and 20 marks for evaluating spread across part b) and part c) of the assignment.
Note: Based on the above, if in your assignment you only demonstrate understanding, the maximum marks available for the content of your assignment would be 30.
