Assignment Brief Academic Year 2022-23

Module code BM414 Financial decision Module leader: Dr Ioannis Karfakis

and title: making

Assignment CW1: 2500-word report to Assessment 100%

No. and type: include business weighting:
calculations/ratios

Submission 02/06/2023 before 2 pm Target feedback 3 weeks after submission

time and date: time and date: deadline

Assignment task

SKANSA PLC is a Construction Company based in UK. SKANSA PLC started back in 1984. The
company is planning to expand its operations to other countries in Europe in the next ten (10) years.
The summarised financial statements of SKANSA PLC, a Public company engaged in Construction, are
shown below.
Statement of profit and loss:

For the year

For the year ended
ended 31 Dec.
31 Dec. 2021
2020
£000 £000 £000 £000
Sales revenue 4,800 6,000
Cost of sales
Opening inventory 1,200 450
Purchases 2,700 4,800
3,900 5,250
Less: Closing inventory (450) (3,450) (900) (4,350)
Gross profit 1,350 1,650
Operating expenses (600) (675)
Finance cost (150) (300)
Net profit 600 675

Internal approval: Mihaela Vasiliu 21/09/2022

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 As at year to 31 Dec. As at year to 31
Statement of financial position
2020 Dec. 2021
£000 £000 £000 £000
Non-current assets 2,955 6,000
Current assets
Inventory 450 750
Receivables – trade 900 1200
Prepayments 90 105
Cash 75 1,515 15 2,070
4,470 8,070
Issued share capital 900 900
Share premium account 300 300
Retained earnings 1,125 1,650
2,325 2,850
Non-current liabilities
10% loan notes 1,500 3,000
Current liabilities
Payables – trade 570 2,100
Accruals 75 645 120 2,220
4,470 8,070

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An individual written assignment of 2,500 words maximum is expected. Use the formal report format
and include a Bibliography/ reference list of all books, journals and websites consulted in your research.
Assume that the financial analysis is aimed at potential investors who are currently considering investing in
SKANSA Plc. The financial performance evaluation will enable the potential investors decide whether to
invest in this company.
You are advised to incorporate the suggested amendments/feedback you received from the module leader
during assignment briefing.

TASK 1

You are part of the Accounting and Finance team at SKANSA PLC.
Write a report to the Management of SKANSA PLC, critically evaluating the importance of Accounting and
Finance functions, duties and roles within SKANSA PLC. Your evaluation must include some examples
within the Company where appropriate.

TASK 2

a. Using the financial statements of SKANSA PLC, calculate the following five ratios for each of the
two years:

1. Return on capital employed

2. Net profit margin
3. Current ratio
4. Average Receivable days/ Debtors collection period
5. Average Payable days/ Creditors collection period

b. Comment on the company’s performance from an Investor with £1 million perspective.

The interpretation and analysis of the Ratios in relation to SKANSA PLC’s performance is required
here. Results from and position between the two (2) years should be revised, explained and analysed,
mentioning possible causes, reasons and effects for the changes in the ratios.

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This assignment has been designed to provide you with an opportunity to demonstrate your
achievement of the following module learning outcomes:

LO 1: Demonstrate knowledge of the role of finance and accounting within the organisation with
respect to both reporting and decision-making aspects.

LO 2: Explain the structure and terms used within the main financial statements.

LO 3: Apply management accounting techniques for planning, control and decision-making within
the organisation.

LO 4: Calculate the main accounting ratios and explain their significance.

Referencing and presentational requirements

Please reference your work using the Harvard style as defined in Cite Them Right Online
(http://www.citethemrightonline.com). This information is also available in book form: Pears, R. and
Shields, G. (2019) Cite them right: the essential reference guide. 11th ed. Basingstoke: Palgrave
Macmillan. Copies are available via the University library.
Additional requirements: There must be a Cover Page and Contents Page, paragraphs of Introduction,
Conclusion and pages must be numbered.

Submission details

This assignment should be submitted electronically using the relevant submission point in the Upload My
Assignment section of LSST Connect.
 Please ensure that your work has been saved in an appropriate file format. Turnitin will only accept
the following file types: Microsoft Word, Excel or power Point, PDF. Your file must also contain at
least 20 words of text, consist of fewer than 400 pages and be less than 40MB in size.

 You can submit your work as many times as you like before the submission date. If you do submit
your work more than once, your earlier submission will be replaced by the most recent version.

 Once you have submitted your work, you will receive a digital receipt as proof of submission, which
will be sent to your LSST email address. Please keep this receipt for future reference, along with
the original electronic copy of your assignment.

 You are reminded of the University’s regulations on academic misconduct, which can be viewed on
the University website: https://www.bucks.ac.uk/current-students/registry-helpdesk-and-academic-
advice/academic-integrity-and-misconduct In submitting your assignment, you are acknowledging
that you have read and understood these regulations.

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Please also note that work that is submitted up to 10 working days beyond the submission date will be
considered a late submission. Late submissions will be marked and the actual mark recorded but will be
capped at the pass mark (typically 40%), provided that the work is of a passing standard. Work submitted
after this period will not be marked and will be treated as a non-submission.

Academic integrity

Academic integrity means taking responsibility for your own work.

When you submit an assignment, you are effectively making a declaration that it is your own work and that
you have acknowledged the contribution of others and their ideas in its development (for example, by
referencing them appropriately).
For further information and guidance, please see the University website: https://www.bucks.ac.uk/current-
students/registry-helpdesk-and-academic-advice/academic-integrity-and-misconduct
You are also expected to take responsibility for maintaining and managing confidentiality issues in your
work. You should maintain and respect confidentiality in relation to the protection of personal, technical
and/or commercial information of a sensitive nature in their assessed work, whatever the format.
Confidentiality issues will vary from subject to subject and you are encouraged to seek advice from your
course team if you are unclear about requirements in your context. For further information and guidance,
please see the University website: https://www.bucks.ac.uk/academic-confidentiality

How your work will be assessed

Your work will be assessed against the assessment criteria which have been provided at the end of this
brief.

These criteria have been designed specifically for this assignment and are intended to measure the extent
to which you have demonstrated your achievement of its associated learning outcomes (see above). They
have been aligned with the institutional grade descriptor appropriate for your level.

The assessment criteria provide a basis for fair and consistent marking and indicate what is expected of
you in this assignment. It is strongly recommended that you engage with them while you are working on
the assignment and use them in combination with any feedback you receive once your work has been
marked to help you plan for future learning and development.

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Assessment Criteria Academic Year 2022-23

0-34 (F) – 35-39 E – 40-49 (D) 50-59 (C) 60-69 (B) 70-79 (A) 80-100 (A+)
REPORT Fail Marginal fail Pass Pass Pass Pass Pass
Not successful Below required Satisfactory Good Very Good Excellent Outstanding
standard
Knowledge and No Little or no Limited analysis Some research The role of Demonstrates Demonstrates
understanding understanding of understanding of of the role of into the role of management excellent excellent
the role of the role of management management accounting research and research and
40%
management management accounting accounting techniques has understanding of understanding of
accounting accounting techniques in an techniques is been well the role of the role of
This should techniques in an techniques in an organization and demonstrated researched management management
include evidence organization or organization or its uses in together with demonstrating a accounting accounting
of: its role in its role in planning, control some good techniques and techniques and
 Depth of planning, control planning, control and decision understanding of understanding of of its uses in of its uses in
knowledge and and decision and decision making its practical uses its uses in planning, control planning, control
understanding of making making in planning, planning, control and decision and decision
the role of control and and decision making making
management decision making making
accounting
techniques in
planning, control
and decision
making process
 Background
investigation,
analysis,
research,
enquiry and/or
study

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Assessment Criteria Academic Year 2022-23

0-34 (F) – 35-39 E – 40-49 (D) 50-59 (C) 60-69 (B) 70-79 (A) 80-100 (A+)
REPORT Fail Marginal fail Pass Pass Pass Pass Pass
Not successful Below required Satisfactory Good Very Good Excellent Outstanding
standard

No interpretation Poor Weak Fair Good Excellent Excellent

Analysis and
and analysis of interpretation interpretation interpretation interpretation interpretation interpretation
criticality 30% the performance and analysis of and analysis of and analysis of and analysis of and analysis of and analysis of
are provided to the performance the performance the performance the performance the performance the performance
demonstrate the are provided to are provided to are provided to are provided to are provided to are provided to
financial situation demonstrate the demonstrate the demonstrate the demonstrate the demonstrate the demonstrate the
This should
and possible financial situation financial situation financial situation financial situation financial situation financial situation
include evidence
of: causes for the and possible and possible and possible and possible and possible and possible
change from an causes for the causes for the causes for the causes for the causes for the causes for the
 Correct investor’s change from an change from an change from an change from an change from an change from an
Interpretation perspective. investor’s investor’s investor’s investor’s investor’s investor’s
and analysis of perspective. perspective. perspective. perspective perspective. perspective.
financial ratios
 Logic and
argument

 Use and range

of independently
selected sources
(Mintel/Passport)
 Analysis and
synthesis
 Analytical
reflection

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Assessment Criteria Academic Year 2022-23

0-34 (F) – 35-39 E – 40-49 (D) 50-59 (C) 60-69 (B) 70-79 (A) 80-100 (A+)
REPORT Fail Marginal fail Pass Pass Pass Pass Pass
Not successful Below required Satisfactory Good Very Good Excellent Outstanding
standard
 Organisation
and
communication
of ideas and
evidence
Application and Poor ratio Poor ratio Weak ratio Fair ratio Good ratio Excellent ratio Excellent ratio
calculations with calculations with calculations with calculations with calculations with calculations with calculations with
Practice 25%
no correct units the correct units the correct units the correct units the correct units the correct units the correct units
of of of of of of of
This should measurements measurements measurements measurements measurements measurements measurements
include evidence for at least 1 of for at least 2 of for at least 3 of for at least 4 of for all the ratios for all the ratios
of: the ratios the ratios the ratios the ratios required over the required over the
 Good required over the required over the required over the required over the two-year period two-year period.
Numeracy & two-year period two-year period two-year period two-year period
Quantitative
Skills
 Correct use of
formula(s) and
correct ratio
calculations

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Assessment Criteria Academic Year 2022-23

0-34 (F) – 35-39 E – 40-49 (D) 50-59 (C) 60-69 (B) 70-79 (A) 80-100 (A+)
REPORT Fail Marginal fail Pass Pass Pass Pass Pass
Not successful Below required Satisfactory Good Very Good Excellent Outstanding
standard
Transferable Brief not met. Brief not fully Brief partially Structured well in Written in a Brief fully met, Brief fully met,
skills Far too long or met. Far too long met and an a Report format. Report format within word within word
too short. Not in or too short. Not attempt made at Writing style is within word count. count.
(5%) –
a Report format. in a Report a Report format. sometimes count. Meets Professional Professional
This should Unclear structure format. Unclear Too long or too unclear. brief fully. Clearly presentation and presentation and
include evidence and poor structure and short. Poor Adequate written and language used in language used in
of: presentation. No poor presentation. references presented. Good a report format. a report format.
 good report references or presentation. No Problems with however only referencing used Excellent range Excellent range
format conclusion given. references or writing style. Few partial use of from a range of and source of and source of
 clarity of Work
conclusion given. references and Harvard sources with referencing. referencing.
expression little conclusion referencing. sensible and Harvard Harvard
demonstrates Work
 referencing demonstrates
given.
A reasonable
detailed referencing referencing
 word count is limited or no
Work attempt at a
conclusions used. Excellent used. Excellent
observed ability to: insufficient ability conclusions conclusions.
demonstrates a conclusion Work
+/- 10% to:
-communicate made. demonstrates a Work Work
sufficient ability
-communicate demonstrates a demonstrates a
information, to: Work highly proficient
ideas, information, demonstrates a ability to: highly exceptional
-communicate
ideas, accomplished ability to:
problems and consistent and -communicate
information, ability to:
problems and confident ability -communicate
solutions ideas, information,
accurately solutions to: -communicate
ideas, information,
problems and
accurately -communicate information, ideas,
and reliably problems and
solutions ideas,
utilising and reliably information, problems and
accurately solutions
relevant utilising ideas, problems and
accurately solutions
communication relevant and reliably
problems and accurately
skills (level of communication utilising

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Assessment Criteria Academic Year 2022-23

0-34 (F) – 35-39 E – 40-49 (D) 50-59 (C) 60-69 (B) 70-79 (A) 80-100 (A+)
REPORT Fail Marginal fail Pass Pass Pass Pass Pass
Not successful Below required Satisfactory Good Very Good Excellent Outstanding
standard
written skills (level of relevant solutions and reliably solutions and reliably
communication) written communication accurately utilising accurately utilising
communication) skills (level of
-Present report and reliably relevant and reliably relevant
written
to a -Present report utilising communication utilising communication
communication)
professional to a skills (level of skills (level of
relevant relevant
standard professional - Present report to written written
communication communication
standard a professional communication) communication)
skills (level of skills
standard
The Harvard written - Present report - Present report
-Present report to
Referencing The Harvard communication) to a professional to a professional
a professional
system not Referencing The Harvard standard standard
- Present report standard
followed. system not Referencing
to a The Harvard The Harvard
followed. system
professional Referencing The Harvard Referencing
sometimes
standard system often Referencing system always
followed.
followed system always followed.
The Harvard followed
Referencing
system .
sometimes
followed.

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