Introduction

This unit is geared towards supporting Learners in understanding and using financial information and data. This unit is important to Learners as it support decision making

Scenario

Learners may use their own employment context, or that of another organisation with which they are very familiar, to base their assignment. However, in the case that they are not able to do so, please use the below scenario:-

You are a senior manager in a business unit of a medium sized enterprise, with functional management and organisational leadership responsibilities. You have responsibility for all aspects of the performance management of your team and its contribution towards the achievement of business goals.

Please select and research an organisation of your choice to identify its approach to performance management.

Task 1:

Guideline word count: 1,000 – 1,100 words

Select an organisation you have worked for or know well obtain the latest copy of their published financial accounts. These will normally contain three financial documents:

• A balance sheet
• A profit /Loss statement
• A source and application of funds

Based on these accounts explicitly address each of the following assessment criteria:

1.1 Determine what financial information is needed and assess its validity

1.2 Analyse different financial documents and information and formulate conclusions about financial performance levels and needs of stakeholders

1.3 Conduct comparative analysis of financial information and data

1.4 Critically review and question financial information and data

In doing so, use a range of financial analysis techniques such as Profitability Ratios Efficiency ratios; Liquidity Ratios; Stability Ratios; Investor Ratios. In addressing criteria 1.1, 1.2 and 1.4 note the relevance of the organisations decision action cycles and also explicitly differentiate between financial data used for decision making and financial information which can concluded from your analysis.

Note 1: There may be a difference in accounting terminology between UK, US, the EU and other countries.

Note 2: An organisation must follow the accounting rules and conventions of the country in which the accounts are prepared. The rules and conventions adhered to can usually be found in the notes and explanations published with the financial documents

Task 2:

Guideline word count: 900 – 950 words

Chose an organisation or a department within an organisation you are familiar with and explicitly address each of the following assessment criteria:

2.1 Identify how a budget can be produced taking into account financial constraints and achievement of targets and accounting conventions

2.2 Be able to assess a budget

2.3 Identify how a budget for a complex organization can support organizational objectives and targets whilst taking into account financial constraints and accounting conventions

In doing so, note the budget process used; the type of budget and management accounting practices adopted by the organisation.

Task 3:

Guideline word count: 300 – 350 words

Chose an organisation you are familiar with and research their approach to managing proposal and projects and explicitly address each of the following assessment criteria:

3.1 Identify criteria by which proposals can be judged Critically analyse the viability of a proposal for expenditure

3.2 Identify the strengths and weaknesses of a proposal and give feedback on the financial proposal

3.3 Analyse the viability of a proposal for expenditure

In doing so make use of evaluation methods such as ROCE, ROI, NPV, IRR and payback also paying attention to types of risk, the treatment of risk, cash flows and the use of depreciation in choosing between project/proposal alternatives.