TMA on Financial Accounting: Summary of KUFPEC's Financial Position

The TMA covers the financial accounting concepts and practices in the businesses. It is marked out of 100. It is intended to assess students’ understanding of some of the learning points within Books 1 to 5. This TMA requires you to apply the course concepts. 

The TMA is intended to:

• Increase the students’ knowledge about the reality of the accounting as a profession.
• Assess students’ understanding of key learning points within Books 1 to 5.
• Develop the ability to understand and interact with the nature of the financial statements in reality.
• Develop students’ communication skills, such as memo writing, essay writing, analysis and presentation of material.
• Develop basic ICT skills such as using the internet.

Access the KUFPEC home page and download the annual report of KUFPEC 2019 or You can directly access the annual report on the below link:

KUFPEC - Annual Reports  And Download KUFPEC Annual reports and Accounts 2019.

Use the 2019 Annual report of KUFPEC to answer the following questions:

• Stakeholderscan affect or be affected by the organization's actions, objectives and policies. List the different types of stakeholders and give examples from the KUFPEC industries annual report to justify your answer. Also explain the reason of their interest in the financial statements. (10 marks)

• Business organizations can be classified into different legal forms. List and briefly explain the different forms of business organizations. Identify under which category of business organization the KUFPEC falls, support your answer from the annual report of KUFPEC 2019.(10 marks)

• As you learned in Unit 1, Session 3, the major environmental factors impacting on an organization can be grouped under four headings: political/legal, economic, social/demographic, and technological (PEST analysis). Giving examplesfrom the annual report, discuss the impact of each of the elements in the PEST analysis on KUFPEC. (10 marks)

• The process of determining the monetary amount at which the elements of the financial statements are to be included in the balance sheet and income statement is called measurement. The IASB Framework includes the four bases of measurement. Explain these four bases of measurement with example. Identify that which measurement bases is used by KUFPEC in preparing their financial statements?(10 marks)   

• IAS 16 Property, plant and equipment identifies and describes two different models of accounting for tangible non-current assets. Discuss the importance of these two models for KUFPEC and describe the depreciation methods used by KUFPEC.(10 marks)

• Equity capital consists of share capital and reserves. Share capital comprises the nominal or par value of issued ordinary and preference shares. What are the four types of share capital? Mention the different types of shares capital from annual report of KUFPEC.  (10 marks)

• Explain why the going concern basis is important in understanding KUFPEC financial statement; Support your answer with evidence from KUFPEC annual report.(10 marks)

• Balance sheet can be prepared in vertical, net asset and horizontal format. What is the difference between these formats? Which format has been adopted by KUFPEC and what is the underlying assumption? Provide evidence from annual report.10 marks)

• Who is the external auditor of KUFPEC? Write a summary on the report of external auditor on the presentation of financial statements. (10 marks)

Write the summary on the financial position of KUFPEC. Your summary should include the main financial data of the company.