INANCIAL REPORTING AND ANALYSISinterpretation of financial statements

FINANCIAL REPORTING AND ANALYSIS
2012/2013 ASSIGNMENT
IMPORTANT INFORMATION
The assignment should be word processed / typed and must not exceed 1500 words.
Marks are awarded for structure and presentation as well as content and analysis.

ASSIGNMENT DETAILS
Impressions Adco Corporation Inc. (IAC) is global Information Technology Company based in New York, which designs, develops, manufactures and distributes computer systems through its subsidiaries across the world. IAC offers its customers a broad range of solutions and services delivered directly and through other distribution channels. IAC has implemented significant restructuring of its subsidiariesa business operations in the UK to ensure that it is ready for the challenges facing similar businesses in the world market. The restructuring entails downsizing, employeesa layoff and sub-contracting. There has also been increased specialisation of roles with the creation of a central Procurement Department in its subsidiaries. Having specialist Bid Managers, Project Managers and Sales and Marketing Managers within each division and reporting to the Commercial Directors of that division are expected to ensure a commercial focus. Winning future tenders was also considered as essential to the success of IAC as it seems to be facing solid competition. IACas General Manager has foreseen some improvement in financial performance as a result of the implemented restructuring strategies. IAC has approached you, as a consultant in financial accounting, for some advice on the performance of its TWO leading subsidiaries operating in the UK.
Required:
Using extracts from the financial statements of the two subsidiaries of IAC (Essakane plc and Westwood plc), you are required to analyse the financial statements shown below. In your analysis you should:
1. Identify, explain and comment of the principal ratios and any key performance indicators that you would use in evaluating these two companies. [You should provide a schedule of appropriate ratios for each of the subsidiaries with supporting calculations, workings and assumptions.]
(30 marks)
2. Evaluate the business performance position of both subsidiaries based on the ratios you have identified as being relevant or significant.
(40 marks)
3. Elliot and Elliot (2011) argue that ratio analysis provides a useful tool for evaluating organisational performance. However, it ignores essential factors shaping an organisation. Drawing from the relevant literature, critically evaluate the above statement.
(30 marks)

(Total 100 marks)
The rest part of question i will upload the document because of graph.
The ratios not only pick from the formular sheet i provide, as well as books.
(it not mean use all the ratio in formualar sheet)

Referencing Requirements:
1.Melville, Alan (2011). International financial reporting : a practical guide. Harlow : Pearson Financial Times/Prentice Hall, 3rd edition.

2.Britton, Anne and Waterston, Chris (2006). Financial accounting. Harlow : Financial Times/Prentice Hall,4th edition.

3.Haskins, Mark E. Ferris, Kenneth R and Selling, Thomas I (2000). International financial reporting and analysis : a contextual emphasis. Boston : Irwin/McGraw-Hill, 2nd edition.

4.Elliott, Barry and Elliott, Jamie (2009).Financial accounting and reporting. Published: Harlow : Pearson. 13th edition

5.Gillespie, Ian. Hamilton, Kay and Lewis, Richard (2000). Principles of financial accounting. Harlow : Financial Times Prentice Hall, 2nd edition.

6.Wild, John J. Larson, Kermit D and Chiappetta, Barbara (2007). Fundamental accounting principles. Boston, Mass. : McGraw-Hill, 18th edition.

7.Robinson, Thomas R[et al] (2009). International financial statement analysis. Hoboken, N.J. : John Wiley & Sons.

8.Lev, Baruch. Financial statement analysis: a new approach. Englewood Cliffs, N.J., Prentice-Hall [1974]

9.Fraser, Lyn M and Ormiston, Aileen (2013). Understanding financial statements. New York, NY : Pearson Education, 10th edition.

10.Fridson, Martin S and Alvarez, Fernando (2011). Financial statement analysis : a practitioners guide. Hoboken, NJ : Wiley, 4th edition.