Session 4

Presenting Information

FOCUS
This session covers the following content from the ACCA Study Guide.

A. The Nature, Source and Purpose of Management

Information
4. Presenting information
a) Prepare written reports representing management information in suitable
formats according to purpose.
b) Present information using tables, charts and graphs (bar charts, line
graphs, pie charts and scatter graphs).
c) Interpret information (including the above tables, charts and graphs)
presented in management reports.

Session 4 Guidance
Know how to structure a report, taking into account its purpose.
Understand how, once data has been collected and analysed and conclusions have been reached,
it becomes information.

(continued on next page)

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VISUAL OVERVIEW
Objective: To present written reports and information using tables, charts and graphs.

WRITTEN REPORTS
• Categories
• Purpose of Reports
• Advantages of Written Reports
• Professional Report Writing
• Components of a Report

PRESENTING INFORMATION
• Methods
• Considerations
• General Presentation Rules

TABLES CHARTS GRAPHS

• Principles of • Bar Charts • Line Graphs
Construction • Simple Bar Chart • Uses
• Uses • Compound Bar Chart • Advantages
• Advantages Over • Pie Charts • Scatter Graphs
Narrative

Session 4 Guidance
Know that how information is presented depends on the recipient of the information and the
specific features of the information.
Use the examples in the session to check your understanding.

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Session 4 • Presenting Information F2 Management Accounting

1 Written Reports

Report—a formal statement of the results of an investigation, or

of any issue on which definite information is required, in a clearly
structured format.

1.1 Categories
Most reports fall into the following categories:*
 Analytical reports present information about issues, events
or procedures and are designed to provide the reader with
sufficient information for decision-making. These reports
include analysis, consideration of alternatives, conclusions and *Some reports for
recommendations. management may be
 Practical reports describe how a task has been undertaken, presented orally, but
what the outcomes were and the significance of the findings. in general, they are
written.
1.2 Purpose of Reports
 To share information—reporting is more likely to be in written
format in a larger organisation than in a small organisation,
where information can be exchanged verbally.
 To provide information as a basis for informed decision-
making.

1.3 Advantages of Written Reports

They are more practical for large groups of recipients (so they
do not have to meet).
Recipients can "digest" the information at their own pace.
Information should be presented more objectively than
through an interactive meeting.
Information should be presented in a more structured and
coherent manner.

1.4 Professional Report Writing

 Some organisations have "house rules" or templates which
determine the format and written style of a report. This may
facilitate the comparison of reports on similar subjects.
 Headings should be meaningful and follow a logical structure
to assist the reader in navigating the content of a report.
 The content should be broken up and presented neatly with
headings, subheadings, etc. Long paragraphs should be
avoided.
 The content of a report should be relevant. A short report
should be concise; a long report should be comprehensive.

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F2 Management Accounting Session 4 • Presenting Information

1.5 Components of a Report

Some standardisation in presenting the components of a report is
desirable as familiarisation with a structure will aid the readers.*
For example:
*In writing large
 From formal reports
additional components
 Date may include a separate
 Subject (title) title page, a table
 Introduction of contents and an
 Analysis (use heading/subheadings) upfront summary or
abstract.
 Conclusion
 Recommendation
 Appendices (show calculations in detail)

 Introduction: Any necessary background should be succinctly

stated with a statement of intent and an indication of how the
subject is to be developed. It should introduce the content
of the report itself, not the topic. Conclusions should not be
included.
 Analysis: This section should be set out under appropriate
and informative headings in a logical sequence (e.g.
chronological). It should:
 describe procedures undertaken;
 make a statement of facts discovered;
 provide clear arguments and opinions.
 Conclusions: These should be unqualified statements which
summarise the findings and inferences of the analysis. New
ideas must not be introduced.
 Recommendations: Justification should not be repeated.
 Appendices: These contain relevant details to support the
analysis and conclusions, but would "clutter" or interrupt
reading of the report if they were included in the main body.

2 Presenting Information

2.1 Methods
Numerous methods can be used to present information:
 Tables;
 Charts (e.g. bar charts);
 Graphs (e.g. line graphs);
 Pictorial representations, etc.

2.2 Considerations
Factors to be considered when choosing a method include:
 Who is going to use the information? A layman or a
professional?
 What is its purpose? Is it to be descriptive or precise?
 What are the characteristics of the data? This generally
governs the most appropriate method.

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Session 4 • Presenting Information F2 Management Accounting

2.3 General Presentation Rules

 Use clear, concise headings.
 Use a ruler for straight lines.
 Make as large as possible (within the parameters of the page).
 Label axes, rows, columns, etc and state "units" (e.g. $000).
 Show a scale on each axis.
 Be neat.

3 Tables

3.1 Principles of Construction

 Keep it simple.
 Give a title.
 State units.
 Make heading unambiguous.
 Avoid double-counting.
 Show appropriate totals/percentages.
 State source (if reproduced).

3.2 Uses
 To show the movement of variables over time.
 To present an analysis of data by geographical area/line of
business, etc.

3.3 Advantages Over Narrative

More readily intelligible to, and comprehended by, the reader.
Easier to locate figures.
Facilitates comparisons.
Reveals patterns.
Takes up less space in a report.

Illustration 1 Table

ABC Insurance Company

Premium Income 2007–2010
2007 2008 2009 2010
$m $m $m $m
UK 1,060 1,193 1,340 1,452
US 1,362 1,239 1,341 1,067
Canada 285 300 361 366
Other countries 393 436 494 572
Reinsurance 110 130 139 154
Total 3,210 3,298 3,675 3,611

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F2 Management Accounting Session 4 • Presenting Information

4 Charts

4.1 Bar Charts

 Bar charts are often used to compare different categories
of information relevant to the same time period (typically a
year). For example, an insurance company might use a bar
chart to depict the number of policies for each category of
insurance:
 motor vehicle insurance;
 household building and contents insurance;
 pet insurance.
 The height of each bar shows the amount of each category.
 Types of bar charts include:
 Simple bar charts—only one comparison is made (e.g. of a
total);
 Component bar chart—includes proportion (%) of parts
(e.g. by geography);
 Multiple (compound) bar charts—each component is
presented as a separate bar.

4.2 Simple Bar Chart

A simple bar chart, such as the one shown in Illustration 2, has
a strong visual impact, but it can be difficult to read precise
amounts.

Illustration 2 Simple Bar Chart

ABC Insurance Company

Premium Income 2007–2010
$m
4,000

3,000

2,000

1,000

0
2007 2008 2009 2010
This visually shows the movement of insurance premiums over time
(i.e. total insurance premiums increased year-on-year 2007–2010 but
fell slightly in 2010).

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Session 4 • Presenting Information F2 Management Accounting

4.3 Component Bar Chart

A component bar chart has more detail (see Illustration 3).

Illustration 3 Component Bar Chart

ABC Insurance Company

Total Premium Income 2007–2010
$m
4,000
Reinsurance
Reinsurance
Other
Reinsurance
Reinsurance countries Other
3,000 Other Other countries
countries countries Canada
Canada Canada Canada

2,000 US US
US US

1,000
UK UK
UK UK

0
2007 2008 2009 2010

Example 1 Bar Charts

Z Co has budgeted the following production in Department X (000s):

Year
Product 2011 2012
A 47 40
B 22 22
C 112 135
Total production 181 197

Required:
Present the above information using the axes provided:
(a) as a component bar chart;
(b) as a multiple/compound bar chart.

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F2 Management Accounting Session 4 • Presenting Information

Example 1 Bar Charts (continued)

Solution
(a) Component bar chart

% 100
Production

75

50

25

2011 2012

(b) Multiple/compound bar chart

Key
Production 150
000s 2011

2012

100

50

Product A Product B Product C

Working (of percentages)

Budgeted Production
2011 2012
Product Units % Units %
A

C
Total

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Session 4 • Presenting Information F2 Management Accounting

4.4 Pie Charts

 The area of each segment is proportional to the percentage it
represents.
 Therefore the angle for each segment of the pie needs to be
calculated (in degrees).

Illustration 4 Pie Chart*

ABC Insurance Company *In 2010, 40.2%

($1,452 ÷ $3,611) of
Premium Income 2010
premiums relate to the
UK (see Illustration 1),
so the UK must get
40.2% of the circle
UK (40.2% × 360° =
144.7°) so say 145°.

Reinsurance
US
Other
countries

Canada

Example 2 Pie Chart

Prepare a pie chart to present the budgeted production information given in

Example 1 for 2012.

Solution

A
40,000

C B
135,000 22,000

Comp: Do not use the labels below, they were necess

to create the pie chart. -LM 6/22/12

Working
US @ 30%
Product Units % Angle in circle°
A Canada @ 10%
B
Other Countries @ 15
C
Total Reinsurance @ 5%

UK @ 40%

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F2 Management Accounting Session 4 • Presenting Information

5 Graphs
A graph is a two-dimensional drawing showing a relationship
(usually between two sets of numbers) by means of a line,
curve or other symbols. Typically, an independent variable (x)
is represented on the horizontal line (axis) and the dependent
variable (y) on the vertical line. The axes intersect at a point
called the origin and are scaled to the units of the quantities
represented.

5.1 Line Graphs

A line graph connects a sequence of pairs of successive data
points with lines in order to illustrate relationships between
variables. For example, the relationship could be shown to be:
 increasing;
 decreasing;
 fluctuating; or
 remaining constant.

5.2 Uses
 Line graphs are the most widely used graphs because they
are easy to create and their visual characteristics clearly show
trends in data.
 They can be used to depict a time series (see Session 13).

5.3 Advantages
They show specific values of data.
They visibly show how one variable is affected by the other as
it increases or decreases.
They help a user to make predictions about the results of data
not yet recorded.

5.4 Scatter Diagrams/Graphs

Scatter diagrams/graphs are more suitable than line graphs
when there are multiple values for y for a single value of x. This
would suggest that there is not a lineal relationship between the
variables or the existence of a trend.*
*Scatter diagrams/
graphs are considered
further in Session 13.

X
X
X
X X X
X X
X X X
X X
X X

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 Summary
 Most reports for management are written and either analytical or practical.
 Standardisation in presenting components of a report assists the readers.
Reports
 The introduction sets out the content (not the topic). It should not include conclusions.
 Analysis must be structured (e.g. in chronological sequence).
 Conclusions summarise factual findings and implications. New ideas must not be introduced.
Presenting Information
 The most suitable method depends primarily on the characteristics of the data. Other factors
include the user and purpose of the information.
 A table can show the change in variables over time (e.g. sales by geographic area).
 Bar charts typically compare different categories of information for a period of time.
 Component and multi-bar charts make more than one comparison (using proportions and
separate bars, respectively).
 A pie-chart shows proportions as segments of a circle.
 Line graphs depict the relationship between two variables.
 Scatter graphs are more suitable for non-linear relationships.

Session 4 Quiz
Estimated time: 15 minutes

1. Describe TWO advantages of a written report versus an oral report. (1.3)

2. List the standard elements of the written report. (1.5)

3. Discuss TWO factors that should be considered when deciding how to present information. (2.2)

4. State the principles of construction of tables. (3.1)

5. State THREE advantages of a table over narrative. (3.3)

6. State the fundamental and conceptual difference between a chart and a graph. (4)

7. Identify the types of relationships that may be illustrated by a line graph. (5.1)

8. State when a scatter diagram/graph would be more suitable than a line graph. (5.4)

Study Question Bank

Estimated time: 30 minutes

Priority Estimated Time Completed

Q9 Supermarket 30 minutes
Additional
Q10 Sales force

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 Session 4

EXAMPLE SOLUTIONS
Solution 1—Bar Charts
Working (of percentage)

Budgeted Production
2011 2012
Product Units % Units %
A 47 26 40 20
B 22 12 22 11
C 112 62 135 69
Total 181 100 197 100

(a) Component bar chart

% 100
Production

75
C C

50

B
25 B
A
A

2011 2012

(b) Multiple/compound bar chart

Key
Production 150
000s 2011

2012

100

50

Product A Product B Product C

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 Solution 2—Pie Chart
Working
Product Units % Angle in circle°
A 40 20.3 × 360 73
B 22 11.2 × 360 40
C 135 68.5 × 360 247
Total 197 100.0 360

A
40,000
C B
135,000 22,000

Comp: Do not use the labels below, they were necessary

to create the pie chart. -LM 6/25/12

A - 20
B - 10
C - 70

9/20/13 “hatchet” was added manually because unable to

edit graphs generated in Ill. -LM

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NOTES

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