You are the financial analyst at Euroland Company. The directors of the Euroland ask you to identify three potential investment opportunities.

Writing instructions

You are the financial analyst at Euroland Company. The directors of the Euroland ask you to identify three potential investment opportunities. Requirements: (a) Identify three listed companies on the London Stock Exchange (LSE) and critically evaluate their financial performance and position for the last five years (you should use the group (Consolidated) financial statements of the company). Prepare your answer in a report form for Euroland directors. Relevant ratios should be included where appropriate. (Ratio Calculations: 20%; Analysis and Interpretation: 40%; Presentation and referencing 10%) (b) Using your analysis in part (a), identify and briefly discuss your investment recommendation. (10%) (c) Using your analysis in part (a), critically discuss the limitations of financial reporting and analysis. In your discussions, you should refer to accounting standards and give specific examples from the accounting policy notes, financial statements and notes to the accounts etc. of your chosen companies. (20%) (TOTAL 100%) Notes: The selected three listed companies must be from the same industry for comparison purposes. You should use the latest available annual reports for the company. Include the companies’ income statement, balance sheet and cash flow statements for the relevant years in the appendix to the report. Ratios required for part (a) must be calculated and not extracted from external databases. All calculations of ratios and other financial data must clearly be shown in the appendices. It is essential that you provide a reference list, of all sources and relevant readings at the end of your report, including websites. Books to use Alexander, David, Britton, Anne, Jorissen, Ann, et al (2017) – International financial reporting and analysis — book Atrill, Peter & McLaney, E.J. (2019) – Accounting and finance for non-specialists — book Elliott, Barry & Elliott, Jamie (2019) – Financial accounting and reporting (19th ed) — book Jones, Michael (2011) – Creative accounting, fraud, and international accounting scandals — book Maynard, Jennifer (2017) – Financial accounting, reporting, & analysis — book Nobes, Christopher & Parker, R.H. (2016) – Comparative international accounting — book Scott, Peter (2019) – Accounting for business (3rd ed)

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