AAF003-6 ISSUES IN FINANCIAL REPORTING
2014/15 SEMESTER 2A
Coursework 2A ( 60% ) - Essay 2500 (+/- 10%) excluding appendices
HAND IN DATE : 29th June 23.00pm
Two of the UK’s leading Retailers are now struggling. Tesco plc wants to draw a line under its recent accounting scandal and Marks and Spencer has seen its profits fall in recent years.
1. (i) Discuss how the UK Corporate Governance Code broke down at Tesco and explain how and why the accounting scandal was able to occur.
(ii) Discuss the arguments for further controls to be introduced in respect of the UK corporate Governance Code.
(iii) Explain what the accounting problem was and how these impacted on the companies reported profit margins.
2. Using data from FAME compare for Marks & Spencer plc and 2 of its main competitors:
a. Their Capital structure using Vertical Analysis and ratio analysis.
b. Their trading performance using both Horizontal Analysis and Ratio Analysis
c. Provide an analysis and interpretation of the data calculated in part b.
Guidance on content
Sum up what in general this essay is about. What are the key themes?
Don’t just repeat the question. Use your own words to make it as interesting as possible.
Don’t give opinions.
Main Body of Report
You need to do your own research into each of these areas.
Summarise what you think the future trading prospects are for Tesco from the investor’s perspective and how quickly you think their share price can recover.
Discuss whether in your opinion further breaches in the corporate governance code are likely to occur.
Make your personal opinion clear.
An excellent pass (A:): In addition to the criteria for a good pass (below), an excellent essay will demonstrate:
• comprehensive and accurate coverage of the area;
• critical, balanced and well-informed evaluation;
• clarity of argument and expression;
• the introduction of new ideas, creativity, and independent thought;
• transfer and integration of models, ideas and information from a range of sources;
• depth of insight into theoretical issues;
• originality of exposition or treatment.
A good pass (B): A good pass essay will:
• be generally accurate and well-informed;
• show some evidence of a wide range of reading utilising primary sources;
• show clear understanding of the material;
• show an ability to evaluate the material, although this may be derivative;
• demonstrate the ability to analyse;
• be reasonably comprehensive;
• directly address the question;
• be clearly presented in a concise manner;
• be well organised and logically structured ;
A clear pass (C:): A clear pass essay may demonstrate:
• generally sound work but with a number of notable errors or omissions;
• general accuracy, although with some omissions and errors;
• an adequate answer to the question, although with less evidence of wide-ranging reading;
• a strong answer to a related question, but not the one set;
• only limited development of arguments;
• only limited analysis and interpretation of presented material;
• clear presentation.
A bare pass (D): A bare pass is likely to include a number of significant errors and/or omissions. A bare pass essay may:
• fail to answer the question directly;
• miss key points of information;
• contain important inaccuracies;
• show only sparse coverage and analysis of relevant material;
• fail to support arguments with adequate evidence/meaning unclear.
A marginal fail (E:): This is unsatisfactory work with serious errors or omissions. Specifically it may:
• contain very little appropriate material;
• show some evidence of relevant reading but provide only cursory coverage with numerous errors, omissions or irrelevancies;
• be disorganised;
• contain much inappropriate material;
• lack any real argument.
A clear fail (F, G:): Work of a very poor standard with little relevant information constitutes an F (2) fail and “nothing of merit” constitutes a G (0). A clear fail essay is likely to:
• show a profound misunderstanding of basic material;
• show a complete failure to understand the question or anything related to it;
• provide totally inadequate information;
• be an incoherent or inappropriate submission.