Fluent Essays

2500 words, it is a part of dissertation Section 3 Strategy Analysis of Barratt and Competitors  The comparison of strategy consists several perspectives: 1. Targeted land buying and effective planning 2. Outstanding and innovative designs 3. Excellent and efficient construction 4. Newly approach of sales and marketing, combined with social media 5. Customized experience with customers 6. Delivering better financial results to shareholdersAn 8,000 word (maximum) report analysing a listed UK company. The report should provide an analysis of the company’s strategic, financial and stock market performance over the last five years. It should be addressed to a potential investor in the company’s shares and should include your recommendation to that investor as to the desirability of investing (or not) in the short, medium or long-term. You will be allocated a particular company and the module will provide the tools to enable you to access its published accounts, other financial and strategic data and stock market data. The allocation of assessment companies is carried out randomly. Please note you will NOT be able to select a company of your own choice. In order to satisfactorily complete the assignment, you will need to conduct in depth research into your allocated company, the industry in which it operates and its competitors. You will be given detailed information as to how to conduct this research in lectures and from suggested reading. The main body of your report should be structured into the following sections: 1. Introduction This section should provide a brief company history, an outline of the industry and of the company’s position within it. 2. Strategic Analysis The strategic analysis should contain reference to the broad environment, industry and competitors, and, most importantly, to the company itself. It should include: a. A PEST(LE) analysis b. An analysis of the industry including a Porter’s Five Forces analysis c. An analysis of the company’s strategy with comparisons to its competitors. The analysis could include for example pricing policies, product range, market position, etc., with that of its competitor(s). 3. Financial Statement Analysis This section should offer an analysis of the company’s financial performance over the last five years. Crucially it should make use of your knowledge of the company’s strategic direction, its industry position and the broad environment. This section should include: a. A detailed analysis of the financial statements, making comparisons with competitor(s). b. Identification of any new accounting policies/treatments, which may impact significantly on future profitability. c. Identification of problems of comparison caused by particular accounting policies/treatments. 4. Stock Market Analysis This section should offer an analysis of the company’s share price performance over the last five years. You will need to use your strategic and financial knowledge of the company as a basis for your analysis. a. Analysis of share price performance relative to the industry and the stock market as a whole. b. An evaluation of stock market indices (price-earnings ratios, dividend yield, etc.) in comparison with competitor(s), sector and market averages. 5. Conclusion and Recommendations The conclusion section should draw together your findings in order to make a recommendation to a potential investor in the Financial Statement Analysis - Accounting for Profit.ppt Leeds University Business School Financial Statement Analysis: Accounting for Profit LUBS 3670 Financial Analysis Lecture 9/10 * Revised IAS 1 (from periods after 1 Jan 2009) It replaced the income statement previously required with a statement of comprehensive income. The statement of comprehensive income includes all recognised gains and losses in the period including those that were previously recognised in equity. It is acceptable under IAS 1 to present the comprehensive income statement as one statement or alternatively, as two statements which separate the income statement from the comprehensive income. Notice that only a minimal amount of information is required on the face of the income statement. Detail of income and expenses must be presented either on the face of the income statement or in the notes to the accounts. Certain items (known as unusual or ‘exceptional’ items) must be disclosed separately either in the income instatement or in the notes, if material. (See Maynard, p 163-174) Analysis of expenses IAS1 permits companies to analyse expenses by: Function - e.g., cost of sales, distribution costs, administrative expenses, other expenses. Or Nature – e.g., raw materials, staffing costs, depreciation. The great majority of companies analyse by function (Format 1). Unusual or ‘exceptional’ items (see Maynard p 277 – 281) IAS 1 defines unusual items as items within the ordinary activities of the enterprise which are of such size, nature or incidence that their separate disclosure is required in the financial statements in order for the financial statements to show a true and fair view Unusual or ‘exceptional’ items Examples include: write-downs of inventories to net realisable value or of property, plant and equipment to recoverable amount, as well as reversals of such write-downs restructurings of the activities of an entity and reversals of any provisions for the costs of restructuring disposals of items of property, plant and equipment disposals of investments discontinuing operations litigation settlements other reversals of provisions No items may be presented in the income statement, or in the notes as extraordinary items. Discontinued operations (see Maynard pp 281 – 292) Profits or losses on disposals of assets and liabilities of a discontinued operation must be shown on the face of the income statement. If a company acquires or discontinues operations this is going to affect its profit flows in future years. Therefore if the financial statements are to be useful to investors in their decision making they need to know the amount of profits or losses which relate to operations that have been closed or sold during the year. IFRS 5, Definition of Discontinued Items A discontinued operation is one that either has been disposed of, OR is classified as held for sale represents a separate maBalance Sheet Balance Sheet At 30 June In millions of UK£ 2020 2019 2018 2017 2016 Assets Non-current assets Other intangible assets 101.1 102.3 100 100 100 Goodwill 805.9 805.9 792.2 792.2 792.2 Property, plant and equipment 19 17.4 11.6 9.5 9.6 Right-of-use assets 46.7 - – - - Investments in subsidiary undertakings - - – - - Investments in joint ventures and associates 152.1 189 234.1 213.1 255.9 Retirement benefit assets 3.5 62.6 58.7 13.6 8.1 Secured loans 1 1.4 1.9 - - Deferred tax assets - - - - - Trade and other receivables 1.3 1.5 3.1 2.3 1.6 Derivative financial instruments – swaps - 11.8 Available for sale financial assets 3.1 3.5 0.8 1130.6 1180.1 1202.8 1134.2 1183 Current assets Inventories 5027.9 4824.3 4516.7 4475.4 4326.6 Secured loans 1.1 1.2 0.3 0.4 0.8 Trade and other receivables 84.9 223.6 226.8 204.5 149.6 Cash and cash equivalents 619.8 958.3 982.4 784.4 758 Derivative financial instruments – swaps 13.2 - 5733.7 6007.4 5726.2 5477.9 5235 Total assets 6864.3 7187.5 6929 6612.1 6418 Liabilities Non-current liabilities Loans and borrowings -200 -200 -191.1 -1.4 -171.5 Trade and other payables -319.7 -413.5 -566.7 -596.9 -629.9 Lease liabilities -36.1 - - - - Deferred tax liabilities -2.4 -17.6 -25.3 -8 -10.5 Derivate financial instruments - swaps -7.5 -558.2 -631.1 -783.1 -606.3 -819.4 Current liabilities Loans and borrowings -117.7 - - -72.5 -6 Trade and other payables -1305.4 -1587.9 -1462.4 -1534.2 -1513.5 Lease liabilities -11.7 - - - - Current tax liabilities -2.8 -99.5 -85.8 -71.1 -63.3 Provisions -28.2 - - - - Derivative financial instruments – swaps -5.8 -5.6 -1465.8 -1687.4 -1548.2 -1683.6 -1588.4 Total liabilities -2024 -2318.5 -2331.3 -2289.9 -2407.8 Net assets 4840.3 4869 4597.7 4322.2 4010.2 Equity Share capital 101.8 101.7 101.3 100.8 100.4 Share premium 245.2 239.3 232.6 224.7 222.7 Merger reserve 1109 1109 1109 1109 1109 Total retained earnings 3382.9 3412.1 3147.3 2878.6 2578.9 Equity attributable to the owners of the Company 4838.9 4862.1 4590.2 4313.1 4001.3 Non-controlling interests 1.4 6.9 7.5 9.1 8.9 Total equity 4840.3 4869 4597.7 4322.2 4010.2 working capital 3.         Financial Statement Analysis   This section should offer an analysis of the company’s financial performance over the last five years.  Crucially it should make use of your knowledge of the company’s strategic direction, its industry position and the broad environment.  This section should include:   a)     A detailed analysis of the financial statements, making comparisons with competitor(s).  You have done very well for part a. b)     Identification of any new accounting policies/treatments, which may impact significantly on future profitability. c)     Identification of problems of comparison caused by particular accounting policies/treatments. IFRS 15 Revenue from Contracts with Customers, effective on or after 1 January 2018 and applicable to Barratt Developments Plc from 1 July 2018. Barratt has applied IFRS 15 using the cumulative effect method, in respect of the adoption of IFRS 15, revenue is adjusted and reduced by £12.7m. This is an example what I did for part b and c, only for revenue. I did write down the new accounting policy, but I don’t know how to analyse the impact of future profitability and what the problems are related to new accounting policies or treatments. So, I think you can help me to finish them. Reference: https://www.investegate.co.uk/barratt-developments/rns/final-results/201909040700051051L/ But most of them (not only the revenue) need to analyse new accounting policies/treatments (if they have). So you need to write a short paragraph for every account of them