a) Define and compute relevant financial ratios.[2]
b) Explain what aspects of performance specific ratios are intended to assess.[2]
c) Analyse and interpret ratios to give an assessment of an entity’s/group’s performance and financial position in comparison with:[2]
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.[2]
e) Discuss how the use of current values affects the interpretation of financial statements and how this would compare to using historical cost.[2]
f) Indicate other information, including nonfinancial information, that may be of relevance to the assessment of an entity’s performance and financial position.[1]