Write a report analysing the financial performance and financial position of two similar companies in the same industry. Your report should utilise various ratios (profitability, liquidity, efficiency, capital structure and investment ratios) and information in the statement of cash flow and include reference to matters that may give cause for concern on companies selected. 50 marks from appropriate discussion on ratios and 20 marks for discussion on the statement of cash flow (70 Marks) Maximum word count 1300 words
Assessment 2: Historical costs versus Fair Value
The valuation of items in the financial statements has been increasingly moved towards the use of the fair values techniques. Analyst and accounting practitioners believe that fair value is the most relevant measure for financial reporting whilst others believe that historical cost provides a more useful measure and is more traditional to accounting profession.
Discuss various valuation techniques according to the IASB conceptual framework for financial reporting and specific international reporting standards including fair value valuation technique (20 Marks) Maximum word count 700 words