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REPORT WRITING
ELEMENTS: AF101
 Objectives
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 Recognise the elements of a business report

 Recognise referencing for APA format
 Re-visit in-text citations
 Understanding the assignment question
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Stop and read your full assignment document on Moodle!

COMPANY FINANCIAL STATEMENT ANALYSIS

The South Pacific Stock Exchange (SPX) is the only licensed
securities exchange in Fiji and currently lists 20 public companies
of which 15 have published their 2020 Annual Reports.
Click link: https://
www.spx.com.fj/Investing/Already-a-Shareholder/Listed-Entity-
Financials

For this assignment, you will need to select ONE company that
has published its 2020 Annual Report and answer the following
guiding questions below in a report format.
 Planning
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The guiding questions must be answered in the following report

format below:

There is no standard cover page for the assignment (in order to avoid
high Turnitin SI %). However, it is important to give your student
names and ID numbers. You can provide this either at the beginning of
your report or even in the headers/footers.

1.0 Introduction (max. 200 words)

2.0 Independent Auditor (Question 1)
3.0 Corporate Social and Environmental Reporting (Question 2)
4.0 Financial Analysis & Interpretation (you may use tables here) (Questions 3 & 4)
5.0 Conclusion and 5.1 Recommendations (Question 4 may also overlap here) (max. 300 words)

Therefore, “Body” = 1500 words in total for Sections 2.0, 3.0 and 4.0
 Introduction
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 set the context to focus the reader

 give some background (choice of business

entity and reasons for choice)

 state key objectives/ summary of the issues or

problems
 provide the structure

 any limitations or assumptions that you made

 Activity: Identify which introduction is better and why?
Examples
ONLY!
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Text A Text B
The Flour Mills of Fiji Limited (FMF) is an inclusive company listed on the Vision Investments Limited (“the Company” or “VIL”) is a
South Pacific Stock Exchange market, creating employment for over a diversified and successful business enterprise with a long
thousand people in the Pacific Islands. It was founded by Mr. Hari Punja in history of trading in Fiji. VIL is a public listed company and
1973 and has diversified over time as productions vary from a wide variety currently the second largest company on the Fiji Stock
of products such as packaged goods, bakery ingredients and rice among
Exchange with a market capitalisation exceeding USD 200
others. Moreover, it is the parent company of the following manufacturing
companies: Pea Industries Limited, Biscuit Company of Fiji, Fiji Snax million.
Limited, Rice Company of Fiji, Atlantic and Pacific Packaging Company The Company was first established in 1970 under the name
Limited and FMF Investments Limited (FMF Foods Limited, 2020).
Courts (Fiji) Limited and changed its name to Vision
The financial statements released by FMF is of great importance to external Investments Limited in March 2015. The origins of the
users as it helps assist in making crucial economic decisions. Therefore, Company go back to Courts PLC, a Company incorporated in
users of financial information should carefully study the changes in the the UK, which was a specialist retailer of electrical and home
financial statements over the years as well as compare the findings with
furnishing goods and operating in countries in the Caribbean,
other entities to make an informed decision (Hogget, p. 890). There are
various tools used in accounting to help analyse and identify relationships South East Asia, and the far East Pacific.
between the various components in a financial statement. These tools are The Company was the first Company in Fiji to introduce easy
horizontal analysis, vertical analysis and ratio analysis, all of this will be
payment consumer finance schemes, which enabled countless
discussed in the upcoming sections.
number of families in Fiji to acquire durable home goods and
With reference to the above information, this project will review FMF’s chattels for their homes resulting in improved lifestyles and
financial statements to conduct a horizontal analysis of the income living standards. This entrenched the Company as a trusted
statement, vertical analysis of the balance sheet along with the ratio analysis
household name in Fiji.
for the years 2018 and 2019. Additionally, one ratio that would greatly
intrigue a prospective investor has been selected from the profitability, In 2004, the Company acquired Burns Phillip Home centres – a
liquidity, financial stability, cash flow sufficiency and the cash flow major retailer in a similar line of business with a long history
efficiency ratios followed by a brief explanation on the significance of these
of trading in Fiji and the Pacific dating back to the early 20th
selected ratios as well as an interpretation on the ratios in the comparative
period calculated. This information will be used to conclude whether an Century. This at that time resulted in a significant expansion of
individual should invest savings worth a lifetime in FMF. the business and the customer base.
 Activity: Identify which introduction is better and why?
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Text A √ provides a better introduction!

The Flour Mills of Fiji Limited (FMF) is an inclusive company listed on the South Pacific Background to the company
Stock Exchange market, creating employment for over a thousand people in the Pacific being studied. Why is there
are need to mention that it
Islands. It was founded by Mr. Hari Punja in 1973 and has diversified over time as is an inclusive company on
productions vary from a wide variety of products such as packaged goods, bakery the SPSE?
ingredients and rice among others. Moreover, it is the parent company of the following
Note the use of references –
manufacturing companies: Pea Industries Limited, Biscuit Company of Fiji, Fiji Snax
anything missing?
Limited, Rice Company of Fiji, Atlantic and Pacific Packaging Company Limited and FMF
Investments Limited (FMF Foods Limited, 2020). Importance of financial
statement specified. The
The financial statements released by FMF is of great importance to external users as it helps paragraph links purpose of
assist in making crucial economic decisions. Therefore, users of financial information statement to the
should carefully study the changes in the financial statements over the years as well as requirements of the
assignment. Note use of
compare the findings with other entities to make an informed decision (Hogget, p. 890). “Therefore” showing this
There are various tools used in accounting to help analyse and identify relationships link. Can you find more
between the various components in a financial statement. These tools are horizontal examples of connectives or
linking words?
analysis, vertical analysis and ratio analysis, all of this will be discussed in the upcoming
sections. Scope and plan of report:
writers are prescribing the
With reference to the above information, this project will review FMF’s financial statements upcoming content of the
to conduct a horizontal analysis of the income statement, vertical analysis of the balance report.
sheet along with the ratio analysis for the years 2018 and 2019. Additionally, one ratio that
would greatly intrigue a prospective investor has been selected from the profitability,
liquidity, financial stability, cash flow sufficiency and the cash flow efficiency ratios
followed by a brief explanation on the significance of these selected ratios as well as an
 Body: Findings & Discussion
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To be written under the given headings [refer Sections 2.0, 3.0 and 4.0]
 Start each section with a clear topic sentence
 Describe the analysis that you did
 Present and discuss these findings (for Section 4.0
Financial Analysis & Interpretation, you may use tables for presentation)
 Use other evidence to strengthen your discussion
(ensure that you correctly cite any materials)
 Body: Findings & Discussion Example ONLY!
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Title INTERPRETATION (Vertical Analysis)

Reference to The table above shows the analysis of various elements that are
the table mainly included in an Income Statement. The net income of FMF Major finding from
Foods Limited has shown a decrease from 2018 to 2019 which was the table/ analysis.
from $8,490,000 to $6,826,000. This gives us an overview that the
income is lower than the level of expenses and this company is in a Interpretation of the
high risk of financial crisis as it has an unfavourable outcome. finding
However, they must have a control over their expenses as it is
growing at a slow rate but has an impact on the income.
Connective Moreover, having a favourable rate of income increases the
Suggestion to
word used number of investments from shareholders and other potential
addressing the
to indicate investors which is why FMF Foods Limited should have a plan of
situation for FMF.
continuation reaching towards a growth in the profit level. Firstly, the company
This is further
of can find a cheaper supplier from whom they can buy raw materials
developed through
discussion and this way their expenses will decrease and the level of
two approaches.
from production will not deteriorate. Secondly, the company can look
previous for ways to mitigate the high level of expenses in order to have the
paragraph. net profit increasing at a much higher level to attract potential
investors and have a positive rate of return in the company.
 Conclusion
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Conclusion Recommendations

 Refer to the questions  List the

and link with findings recommendations for
 Can they be improvement
addressed/ improved?
 Conclusion Example ONLY!

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Note the 5.0 Conclusion

subheading and
Considering the data acquired after conducting the analysis of Overall
the numbering.
the financial statements, FMF has shown considerable conclusion
improvement in its financial dealings. depicting findings
from the analysis
As per the data gathered from the horizontal analysis, there has
been a decrease in profit by 19.60% which simply means after The underlined
the payment of expenses, the company has $6,826,000.00 portions show
unconsumed income in 2019 compared to $8,490,000.00 in implications of
2018. The profit is often a significant starting point when main findings and
analysing an income statement, however, it must not be used how these should
exclusively when evaluating a company. Therefore, other be used for
aspects need to be considered when deciding to invest money decision making.
into a company such as the profit made by operations. As
shown by FMF, the operating profit has decreased and they can
then look for measures in order to mitigate the problem, hence,
increasing the number of investments and growth in the profit
level.

(Excerpt from a longer text).

 Recommendations Example ONLY!

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Note the
5.1 Recommendation
subheading It is strongly recommended for FMF to decrease its Recommendatio
and cost of production, most likely by selecting different n provided
numbering suppliers for raw materials as it has increased by 8.91%
Reasoning for
in the year 2019. This will help FMF in controlling its
the
total expenses and improving its profit margin ratio. recommendation
Additionally, the liabilities should be decreased by
selling off unused assets and through additional
contribution of capital into the business to settle loans.

(Excerpt taken from a longer text)

Referencing
Support

Accessible via the

USP Library page

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 References: Using APA style guide
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In-text References

 Direct quotations (max.  Final complete list of

of 2 only) references (max. 5 sources,
 Paraphrases including the annual report)

Potential sources include:

Annual Report + Books + Journal
Seek
articles + any other relevant & assistance
reliable source of information from SLS or
library staff
 Direct quotes
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Short quote Long quote

Although Dickens never shied away from the

Critser (2003, p. 5) noted political controversies of his time, he never,
that despite growing in Orwell's view, identified himself with any
political program:
numbers of overweight The truth is that Dickens' criticism of society is almost

Americans, many health exclusively moral. Hence his lack of any constructive
suggestion anywhere in his work. He attacks the law,
parliamentary government, the educational system so forth,
care providers still “remain without ever clearly suggesting what he would put in their
places. Of course it is not necessarily the business of a novelist,

either in ignorance or or a satirist, to make constructive suggestions, but the point is

that Dickens' attitude is at bottom not even destructive For in
reality his target is not so much society as human nature.
outright denial about the (Orwell, year, p.419)

health danger to the poor  Used when there are more than 40 words

and the young”.  Does not need quotation marks

 Source is cited outside the citation i.e. after the full
stop
 Uses 0.5 inch indent
 Paraphrase
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What is it? Strategies

Use different vocabulary which imply same meaning.
Rewriting another person’s For example: Tertiary studies can be difficult.

ideas using one’s own words → Coping with higher education may not always be easy.
→ There may be some challenges with tertiary education.
without changing the original
meaning Change the order of words. Do not place words from the
original sentence in consecutive order. This can result in
patchwork paraphrase.

Example: For example: There are several benefits of the Tourism

Industry.

The cat ate the rat. (active sentence → The Tourism Industry holds many benefits.

structure)
Change the grammar of the sentence.
The rat was eaten by the cat. For example: The academic gave a memorable lecture.
(passive sentence)
→ I will always remember the lecture by that academic.
→ The lecture is worth remembering.
 Activity: Paraphrase the following sentence
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 As commonly set forth the entity view holds the business

enterprise to be an “institution in its own right, separate and
distinct from the parties who furnish the funds ..” (Husband,
1954, p. 552)
Note: the reference information has been changed for the purposes of this activity. Husband is a secondary
source.

Possibilities:
 According to Husband (954, p. 552), the entity concept
regards business as independent from its financiers.
 The business is independent from its financial owners
(Husband, 1954, p. 552).
 Working with Turnitin
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 References (for this SLS resource)
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 Husband, G. R. (1954).The Entity Concept in

Accounting. The Accounting Review 29(4), pp. 552
– 562. http://www.jstor.org/stable/241783.
 Acknowledgment: AF101 students (for excerpts)
 Student Learning Support
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Joycelyn Devi
014-032
[email protected]