Individual Assignment in report format

Individual Assignment in report format

This assignment is designed to give you an opportunity to develop written communication skills whilst working with international accounting and finance issues.

The total length of the assignment should not exceed 1,800 words (excluding the list of references). Appendices should not be used with all relevant data in the report.You should state the word count on the front page of your report. The report should be word-processed in Arial Font size 12 at 1.5 line spacing.

Required:

You should write answers to each of a) b) and c) as three parts of the main body of a single report to the non-financial directors of BP plc, using the 2017 Annual Report as a resource:

2016. Analyse the 2017 BP financial statements in terms of profitability, efficiency and performance comparing the results with 2016. (Indicative 800 words maximum) (40% weighting).

1. BP Shares are listed in London, Frankfurt and New York. Discuss the reasons why BP might have these cross-listings. (Indicative 500 words maximum) (25%).

1. BP has many transactions in different currencies – both day to day transactions and investments. Discuss how the company is affected by foreign exchange risks and how it can manage these risks. (Indicative 500 words maximum) (25%).

Only one introduction and conclusion is needed. A summary and recommendations are not needed.

10% weighting for presentation, report format and referencing using the Harvard system.

For part a) please use the ratio calculation methods per the lectures and Scott – Accounting for Business. The ratios and calculations should be included in the report (not in an appendix).

Advice notes on individual assignment

1. Read the assignment brief carefully. There only needs to be one short introduction and conclusion (say 100 words each maximum). No executive summary or summary and recommendations are needed.
2. Start each part a) b) and c) on a new page for ease of location by the markers.
3. Follow the presentation guidelines 0 Ariel font size 12 at 1.5 line spacing.
4. Word-count – you may exceed the word-count by 10%. State your word-count on the title page. Tables with ratios and calculations and list of references are not included in the word-count.
5. Do not use appendices as these are hard to mark.
6. Remember that this report is to NON-FINANCIAL DIRECTORS of BP – so you need to explain any technical matters carefully in simple English.
7. Total references – suggest six minimum of which three can be the set text books. Use Harvard referencing.
8. Beware just copying out from the sources – try to show that you understand. Even if you paraphrase from a source you should still have an in-text reference.

Part a)

1. General point: To analyse means to take the ratios that you have calculated or extracted and comment on them – have things improved/worsened/remained stable since 2016? What are the potential implications of the change (you can consider the possible effect on share price perhaps).
2. Use the group income statement and group balance sheets on page 125 and 128 of the BP annual report. You will need to access some of the accompanying notes to the accounts too.
3. See lecture handout for lecture 3 for the format of the ratios.
4. See also Scott Accounting for Business Chapter 8 for explanations and background to the ratios.
5. Suggest two ratios for each of the three areas (then look at the two years for each).
6. Profitability – avoid gross profit % as the GP figure is not given.
7. Profitability – Note that profit before interest and tax = operating profit.
8. Efficiency – Using the number of employees of P183 you could calculate revenue per employee.
9. Performance – there is no need to calculate the earnings per share but you can still include it in the ratios that you analyse (see p125 for the eps figures).

Part b)

1. See lecture handout 7 from Week 4 – in particular page 3 on the benefits of foreign listings.
2. See also Roberts International Corporate reporting Chapter 2.

Part c)

1. See lecture handouts for Weeks 9, 10 and 11.
2. Try to keep your answer short with well made points.
3. Suggest splitting your words half and half between (1) risks and (2) how to manage them.

Last Updated on March 6, 2019