You will notice that the name of the Task is Financial Statement Analysis. Thus, analysis is essential. Students are expected to use the financial analysis techniques referred to in Topics 3 and 4, and specifically must include some ratio analysis. You may choose to use the other analysis methods, such as vertical, horizontal or trend. Your choice should be driven by what will be useful in the analysis and in conveying your arguments.
Analysis involves drawing meaning from the results and goes beyond stating what the results are or how they have changed.
Some further tips in relation to analysis:
• In your assessment, we would expect coverage of the main financial dimensions (per topic 3 and topic 4), but focus on those most relevant to the organisation. Your informed consideration of what you consider to be most relevant is also important as it demonstrates understanding of the financial dynamics of the organisation.
• Provide ratios (and possibly also trend, vertical or horizontal analysis) as evidence of the organisation’s performance in the financial dimensions.
• Provide theory/concept explanation to show that you know what information the financial ratios provide and what financial issues they illustrate.