Financial statements provide information about the health of an organisation. They offer a wealth
of information to a wide variety of internal and external stakeholders to assess its position and
performance. You should obtain the published financial statements for three consecutive years’
trading to assess the financial activity of your chosen UK based Charity.
Completion of this assignment will address the following learning outcomes:
1 Identify and evaluate the impact the economy has on business organisations.
4 Evaluate financial information in a range of organisational contexts.
5 Interpret key financial information to aid decision making and performance monitoring.
6 Appraise and propose courses of action informed by accounting tools and concepts.
Task:
Title: An analysis and evaluation of financial performance
You should produce a 2,500 analysis in the format of a report, which uses key accounting ratios to
evaluate the financial performance and position of your chosen Charity. You should produce
comparative numerical ratios for each of the three years and analyse and explain any trends within
these ratios. Your report should also identify, explain and justify three key strategic decisions which
you believe the organisation should take as a result of the financial analysis you have carried out.
Choose an external financial stakeholder of your Charity to be your audience. Your analysis and
report should cover learning outcomes 1, 4, 5 and 6. Your choice of charity should be agreed with
your tutor in a tutorial.