UNIVERSITI TUNKU ABDUL RAHMAN

ACADEMIC YEAR 2014/2015

BACHELOR OF BUSINESS ADMINISTRATION (HONS)
BACHELOR OF FINANCE (HONS)
UBFF 3083 - FINANCIAL STATEMENT ANALYSIS
ASSIGNMENT (QUESTION)
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Learning Outcomes:
Develop an understanding of the importance of the regulatory, political and
economic contexts of financial reporting for financial statement analysis.
Develop a critical approach to the analysis of financial statements and a clear
understanding of the uses and limitations thereof.
Enable the student to access and critically analyze published financial statements
and other financial and non financial data.
Identify the users and their informational needs on the interpretation of financial
statements
Financial statements provide insight into the companys current status and lead to the
development of policies and strategies for the future. Ratio analysis is a tool to provide
insights into underlying conditions. They are one of the starting points of analysis, not
an end point. Ratios properly interpreted, identify areas requiring further investigation.
The analyst should be alert to the potential for management to influence the outcome of
financial reporting in order to appeal to creditors, investors and other users.
Consider yourself to be working as a Financial Analyst and you have a client who is
interested to invest in a Malaysian Public Listed Company (PLC). (Each assignment is
required student to select listed companies in Malaysia from www.bursamalaysia.com.
Your report should include the comparison of the financial position and performance of
the selected PLCs and the analysis and comment thereon. You are also required to
make a recommendation to your client with sufficient reasons on your final selection.
A guide to the format of your assignment is as follows:
(a)

Background information on the companies. (Describe your companies profile

and core business activities.)
(10 Marks)

(b)

Industry analysis.

(5 Marks)

(c)

An assessment on the management of the companies.

(5 Marks)

(d)

Compute at least 2 ratios from each of the following accounting ratio categories
over the past two years for both selected companies.
(i)
Profitability ratios
(ii)
Liquidity ratios
(iii)
Leverage ratios
(iv)
Efficiency ratios
(32 Marks)
1

(e)

Conduct a time-series analysis base on the ratios calculated above for both
companies.
(18 Marks)

(f)

Analyze the cash flow statements of the selected companies for the past two
years.
(10 marks)

(g)

Compare the financial position and performance of the selected companies (base
on your findings above (pat a to part h) and comment on whether you would
advise your client to invest in these companies. (You are expected to give a
critical review on the findings obtained.
(20 Marks)