ACCA FR Classroom - Syllabus C2. Calculation And Interpretation Of Accounting Ratios 2 / 4
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
d) Interpret financial statements (including statements of cash flows) together with other financial information to give advice from the perspectives of different stakeholders.
e) Interpret financial statements (including statements of cash flows) together with other financial information to assess the performance and financial position of an entity.
f) Discuss how the use of current values affects the interpretation of financial statements and how this would compare to using historical cost.
g) Indicate other information, including non- financial information, that may be of relevance to the assessment of an entity’s performance and financial position.
Calculation And Interpretation Of Accounting Ratios