Posted: August 24th, 2022

Introduction to Accounting and Finance Module code: IYC020C103

Headline info for college students:
1)Kind of Assessment:
(One summative Assessment
per module)
Case Examine (40 % weighting)
four) Phrase restrict or time restrict
(presentation/podcast/movies
and many others.):
1,500 phrases
5) Examination Kind:
Unseen, open e-book, closed,
pre-circulated process, case research
and many others.
Case Examine – coursework
6) Time restrict: Coursework
7) Examples of Assessment &
FAQ are on Moodle:
On Moodle
eight) Mode of submission: This will probably be through Turnitin
Submission date and time 30th August 2022 by 2pm (GMT)
Educational 12 months and time period: 2021/22
Module title: Introduction to Accounting and Finance
Module code: IYC020C103
Module Convener: Jo Whitefoot
Studying outcomes assessed
inside this piece of labor as
agreed on the programme
stage assembly
College students who efficiently full this module will:
1. Information consequence – have the option to develop
understanding of the worth of accounting
info in numerous contexts to each inner and
exterior customers in addition to growing data of
technical language and present practices.
2. Mental/transferrable ability – have the option to file
and current transactions in easy monetary
statements in addition to put together and analyse
info for administration choices to preserve
the monetary sustainability of the enterprise.
Enterprise Readiness
outcomes assessed inside
this piece of labor as agreed
on the programme stage
assembly
You might be starting to develop a spread of particular
transferable abilities and data which will be utilized
to resolve quantitative enterprise issues.
As agreed within the Programme
stage assembly:
Marks and suggestions date: Suggestions & grades will probably be given 28 days after
submission.
Closing outcomes & development will probably be introduced after the
July examination board.
9) Formative Assessment
Element:
Kind
Dates as agreed at programme
stage assembly
How formative contributes to
summative Assessment
Formative suggestions is supplied by way of:
• Assessment of solutions to scheduled workout routines in school
• Observe assessments
• These assessments (and apply assessments) present scaffolding
for the examination
1. Common Assessment Steerage
• Your coursework summative Assessment for this module accounts for 40% of the
marks.
• The deadline for submission is 30th August 2022 by 2pm (GMT). Please word late
submissions is not going to be marked.
• You might be required to submit all parts of your Assessment through Turnitin on-line
entry. Solely submissions made through the required mode will probably be accepted and arduous
copies or some other digital type of submissions (like through e-mail or pen drive and many others.) will
not be accepted.
• For this coursework, the submission phrase restrict is 1,500 phrases. You should adjust to
the phrase rely tips. You might submit LESS than 1,500 phrases however no more.
• A complete of 40 marks can be found for this module Assessment, and you might be required
to obtain minimal 40% to go this module.
• You might be required to use solely Harvard Referencing System in your submission. Any
content material which is already printed by different writer(s) and will not be referenced will probably be
thought of as a case of plagiarism.
• It is best to embody a accomplished copy of the Task Cowl sheet. Any
submission with out this accomplished Task Cowl sheet could also be thought of
invalid and not marked.
2. Assessment Transient
PLEASE READ CAREFULLY
INSTRUCTIONS TO STUDENTS
Key Assessment Necessities
1. Learn the questions fastidiously and solely reply what’s required.
2. Current a important report of your Assessment and responses to all questions.
three. The place acceptable, current key monetary and financial theories to help your
solutions and current assumptions utilized in your Assessment and any sensible
implications these could have.
four. You additionally want to do a full bibliography of your sources.
There are 4 questions in whole, plus a advice. You might be required to reply
all questions in full. Marking for every Question Assignment is allotted as under:
Marking Guideline for College students
To Help construction your presentation in an expert method, you need to clearly establish
which Question Assignment you are trying. The report is marked out of 40.
The next desk reveals the mark allocation, approximate phrase rely per Question Assignment
and the strategy required.
Questions
Allotted
Marking &
Phrase Depend Kind
Q1
7 marks
Up to a max of
c.285 phrases
a) i) Marks are awarded for precisely figuring out
the related monetary assertion for every
description (1 mark every) and ii) the particular
part in that assertion (1 mark every).
b) Marks are awarded for a common clarification
utilizing your personal phrases of what every assertion
does/is for. (three marks)
Q2 14 marks
a) Marks are awarded for accuracy of the
calculation of the year-on-year change in
income. (1 mark)
Up to a max of
c.565 phrases
b) Marks are awarded for accuracy of the
calculations within the segmentation income
Assessment. (three marks)
c) Marks are awarded for accuracy of the
calculations in gross revenue margin segmentation
Assessment. (three marks)
d) Marks are awarded for the identification of the
totally different ranges of value within the SPL, utilizing your
personal phrases. (2 marks).
e) Marks are awarded for accuracy of the
calculations within the segmentation working revenue
margin Assessment. (three marks)
f) Marks are awarded for important pondering within the
interpretation of working margin ratio outcomes
(2 marks)
Q3
eight marks
Up to a max of
c.325 phrases
a) Marks are awarded for important pondering within the
interpretation of the consequences of depreciation on
the SOFP, utilizing your personal phrases. (2 marks)
b) Marks are awarded for accuracy of the
calculations for the corporate’s gearing ratios. (2
marks)
c) Marks are awarded for accuracy of the
calculations for the corporate’s curiosity cowl
ratios. (2 marks)
d) Marks are awarded for important pondering within the
interpretation of the corporate’s monetary
solvency, utilizing your personal phrases. (2 marks)
This fall
6 marks
Up to a max of
c.245 phrases
Marks are awarded for the identification of three
main modifications in figures from 2019 to 2020 that
contributed to a internet outflow of money. (three marks)
Marks are awarded for important pondering and
having the ability to give a sound motive why every money
outflow occurred. (three marks)
Q5
three marks
Up to c.80
phrases
This ought to be a quick synopsis of your important
analysis of the corporate’s enlargement into
on-line and resort actions.
You should embody related information, figures, and
ratios which you may have found throughout your
Assessment to help your advice.
Construction &
Presentation 2 marks
Marks are awarded for:
i. acceptable use of enterprise language (1 mark)
ii. clear format and construction and acceptable use
of appendices and referencing (1 mark)
CASE STUDY ON NEXT PAGE
CASE STUDY – Rest Firm Ltd
Background
Rest Firm Ltd (Rest) manufactures and sells its own-brand luxurious
perfumes, toiletries, and candles through its 15 shops within the UK and additionally to different bigger
retail firms.
Income and earnings have been regular during the last 10 years up to the top of 2020.
Throughout lockdown due to Covid-19, the corporate launched a brand new on-line store to promote
Rest’s merchandise and has additionally secured a profitable cope with a well-known resort chain,
Opulence Resorts (Opulence).
Your process
You’re employed in Rest’s finance division. As a part of your position, the Finance Director
has requested you to put together the next:
• An Assessment of the monetary efficiency of Rest in 2020 in contrast to
2019.
• A advice as to whether or not the brand new on-line store and resort deal have been
a good suggestion for the enterprise.
To help you with this process you may have been supplied with info as follows:
Exhibit 1: Extracts from Rest Firm Ltd’s Monetary Statements for 12 monthsfinish December 2019 and 2020, together with:
• The Assertion of Revenue or Loss,
• The Assertion of Monetary Place, and
• The Assertion of Money Flows.
Assertion of Revenue or Loss at year-end December 2020
2020 2019
£’000 £’000
Income 9,000 5,550
Value of Gross sales (6,125) (three,885)
Gross Revenue 2,875 1,665
Overheads
(1,006) (620)
(996) (534)
Working revenue 873 511
Finance prices (65) (51)
Revenue earlier than Tax 808 460
Revenue tax expense (202) (120)
Revenue for the interval 606 340
Assertion of Monetary Place at year-end December 2020
2020 2019
£’000 £’000
ASSETS
Non-current Belongings
Property, Plant and
Tools 570 600
Improvement prices 30 15
600 615
Present Belongings
Inventories 1,575 1,470
Commerce and different receivables 683 465
Money and money equivalents zero 63
2,258 1,998
Whole Belongings 2,858 2,613
EQUITY AND LIABILITIES
Fairness
Share Capital 825 825
Retained Earnings 768 615
Whole Fairness 1,593 1,440
Non-current Liabilities
Lengthy-term borrowings 618 606
Present Liabilities
Commerce and different payables 545 567
Financial institution overdraft 102 zero
647 567
Whole Liabilities 1,265 1,173
Whole Fairness and Liabilities 2,858 2,613
Assertion of Money Flows at year-end December 2020
2020 2019
£’000 £’000 £’000 £’000
Cashflows from working actions
Revenue earlier than tax 808 460
Changes for:
Finance value 65 51
Depreciation 60 78
933 589
Enhance in inventories (105) (12)
Enhance in commerce & different receivables (218) (6)
Lower/improve in commerce payables (22) 11
Money generated from operations 588 582
Curiosity paid (65) (51)
Revenue tax paid (202) (120)
Internet money move from working actions 321 411
Cashflows from investing actions
Buy of Property, Plant & Tools (75) (53)
Funding in product improvement (15) zero
Proceeds from sale of property, plant & gear 45 zero
Internet money move from investing actions (45) (53)
Cashflows from financing actions
Proceeds from long-term borrowings 75 zero
Compensation of long-term borrowings (63) (109)
Dividend paid (453) (225)
Internet money move from financing actions (441) (334)
Internet (lower)/improve in money and money equivalents (165) 24
Money and money equivalents at the beginning of the 12 months 63 39
Money and money equivalents on the finish of the 12 months (102) 63

Exhibit 2: Further monetary info which helps the Monetary
Statements in Exhibit 1.
Segmental Assessment: year-end December 2020
Retail On-line Lodge Whole
£’000 £’000 £’000 £’000
Income 6,006 1,644 1,350 9,000
(four,206) (1,150) (769) (6,125)
Gross Revenue 1,800 494 581 2,875
Administration bills (683) (165) (158) (1,006)
Distribution prices (573) (123) (300) (996)
Working Revenue 544 206 123 873
Exhibit three: Notes from a dialogue with the Finance Director which covers
the 2 new enterprise segments in 2020.
On-line retailer
• Rest developed the infrastructure for the web retailer in April 2020 with the
web site going reside at the beginning of Might 2020. Gross sales have been in step with goal
throughout the primary 9 months of operations.
• The promoting worth and prices of constructing our merchandise have remained the identical
throughout the retail and on-line operations.
• The corporate has incurred extra prices round using workers to Help
preserve the web site and common on-line atmosphere, together with extra
folks to improve capability inside buyer providers (to cope with any on-line
points clients may expertise).
• As clients now not choose the merchandise up instantly, the corporate has secured
a distribution cope with a nationwide logistics firm to ship the merchandise to
their door.
• These extra prices have been greater than offset by not needing incur the
traditional overhead prices related to important extra gross sales seen in retail
shops, together with hire, charges, advertising, and extra store workers.
Lodge chain contract
• Rest has secured a profitable two-year cope with a boutique resort chain,
Opulence Resorts. The deal will see Rest manufacture merchandise for the
resort, carrying the resort title and brand.
• The contract commenced in January 2020.
• The settlement is predicated on a spread of Rest’s merchandise being labelled with
the resort’s branding. The corporate is in a position to cost a premium worth on the
merchandise equipped. Instance: one of many firm’s fundamental magnificence merchandise
(Everbright Moisture Mist) which prices us £35 to produce would usually promote for
£50, however with the resort’s brand connected this may now be bought for £62.
• As with the web store, this contract additionally had an impression on the corporate’s value
base (which is mirrored within the segmental Assessment prices in Exhibit 2 for the resort
contract).
• The corporate rented extra equipment which attaches the resort’s brand to the
merchandise.
• It additionally employed an administrator to oversee and co-ordinate the contract.
Further notes from a dialogue with the Finance Director:
• The segmental Assessment supplied in Exhibit 2 consists of an allocation of
administrative and distribution prices throughout the assorted enterprise segments. It
ought to be famous that the prices beneath the web retailer and resort contract columns
relate to the extra prices the corporate is now incurring throughout these new
enterprise segments.
• When contemplating how the corporate manages its money place, most of its
clients are retail or on-line who pay on the level of sale. Receivables primarily
come up from companies to which it provides items, and its traditional cost phrases
are 30 days from date of bill.
• In negotiating the contract with the resort chain, Rest managed to negotiate
preferable cost phrases of 21 days when agreeing the distribution price.
• Good provider relations imply that the corporate has been ready to negotiate some
preferable cost phrases (an prolonged interval of credit score) with suppliers. Nonetheless,
it doesn’t have the identical stage of historical past and belief with new suppliers and
due to this fact it’s not but ready to negotiate related phrases.
• In 2018, Rest’s financial institution determined that it will not lengthen any extra loans till
the present debt has been repaid. The corporate has due to this fact been attempting to use
money move during the last couple of years to repay the loans. During the last 12 months,
the financial institution agreed to present some extra long-term loans to Help fund the
on-line and resort initiatives, however the curiosity charged on this new debt was greater
than beforehand.
You should reply ALL the next questions
Q1: Options of Rest’s monetary statements
(7 marks for this part)
a) Take into account the TWO descriptions under:
• “The corporate has incurred extra prices round using workers to
Help preserve the web site and common on-line atmosphere, together with
extra folks to improve capability inside buyer providers”.
• “The financial institution agreed to present some extra long-term loans to Help fund
the web and resort initiatives”.
For EACH assertion:
i. Select whether or not the outline relates to both the Assertion of Revenue or
Loss (SPL) or the Assertion of Monetary Place (SOFP).
(2 marks)
ii. Clarify the place every of the transactions can be particularly situated in
both the SPL or the SOFP as recognized in 1a) above.
(2 marks)
b) Utilizing your personal phrases, briefly clarify the totally different functions of the THREE
main monetary statements:
• Assertion of Revenue or Loss;
• Assertion of Monetary Place; and
• Assertion of Money Flows.
(three marks)
Q2: Deciphering Rest’s Assertion of Revenue or Loss (SPL)
(14 marks for this part)
a) Utilizing the SPL in Exhibit 1, calculate the share change in whole income to
establish the motion between 2019 and 2020.
(1 mark)
b) Each the web retailer and the resort contract have been new in 2020. Utilizing the
segmental Assessment in Exhibit 2, calculate the share of whole income
contributed by:
• The retail operations,
• The net retailer, and
• The resort contract
(three marks)
c) Utilizing the phase Assessment supplied in Exhibit 2, calculate the gross revenue
margin ratio for EACH of the next segments of the enterprise:
• The retail operations,
• The net retailer, and
• The resort contract
(three marks)
d) Utilizing your personal phrases, describe the important thing distinction between value of gross sales and
working bills within the Assertion of Revenue or Loss.
(2 marks)
e) Utilizing the segmental info in Exhibit 2, calculate the working revenue
margin ratio for EACH of the next segments of the enterprise:
• The retail operations,
• The net retailer, and
• The resort contract.
(three marks)
f) Utilizing the knowledge calculated above and within the case research, give ONE motive
why the working revenue margin for the web retailer is greater than that for the
different segments of the enterprise.
(2 marks)
Q3: Deciphering Rest’s Assertion of Monetary Place (SOFP)
(eight marks for this part)
a) In your personal phrases, clarify why depreciation is charged, and its impact on the
worth of the property, plant and gear (PPE).
(2 marks)
b) Calculate:
• Capital gearing ratio in 2020 and 2019.
(2 marks)
• Curiosity cowl ratio in 2020 and 2019.
(2 marks)
c) Clarify in your personal phrases how gearing and curiosity cowl ratios Help us assess
an organization’s monetary solvency.
(2 marks)
This fall: Deciphering Rest’s Assertion of Money Flows
(Whole of 6 marks for this part)
Even though the corporate made a revenue for the 12 months, the assertion of money
flows (CFS) reveals that it has skilled a internet money outflow throughout 2020.
The money flows from working actions present that though the corporate’s revenue is
bigger this 12 months than final 12 months, the money influx is smaller than final 12 months’s.
Establish THREE actions that contributed to this internet outflow of money. You MUST give
a motive why every money outflow occurred.
(6 marks)
Q5: Suggestion
Your advice ought to draw on the solutions you may have discovered out of your Assessment
as to whether or not the brand new on-line store and resort deal have been a good suggestion for the
enterprise. You should embody related information, figures, and ratios which you may have
established to help your findings.
(three marks)
Construction and Presentation
• Right use of enterprise language.
(1 mark)
• A transparent format and construction and acceptable use of appendices and referencing
(1 mark)
Whole: 40 marks
END OF PAPER

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Tags: Introduction to Accounting and Finance Module code: IYC020C103