a) Define and compute relevant financial ratios.
b) Explain what aspects of performance specific ratios are intended to assess.
c) Analyse and interpret ratios to give an assessment of an entity’s/group’s performance and financial position in comparison with:
i) previous period’s financial statements ii) another similar entity/group for the same reporting period iii) industry average ratios.
d) Interpret financial statements (including statements of cash flows) together with other financial and non-financial information to assess the performance and financial position of an entity and to give advice from the perspectives of different stakeholders.
e) Discuss how the use of current values affects the interpretation of financial statements and how this would compare to using historical cost.
f) Indicate other information, including nonfinancial information, that may be of relevance to the assessment of an entity’s performance and financial position.