The Business and Financial Performance of an Organisation for the Past Three Years
Essay Preview: The Business and Financial Performance of an Organisation for the Past Three Years
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The topic that I have chosen for this report is, “The business and financial performance of an organisation for the past three years”.
Financial performance deals with measuring the results of an organisations policies and operations in monetary terms, which are then reflected in the firms return on investment, return on assets, value added, etc. Business performance is measuring the outcome of the investment that is being made with the aim to generate profit. Good performance is necessary for achieving goals and satisfying the stakeholders.
The importance of accountants in an organisation is being increasingly recognised, as Helen Brand (Chief Executive of ACCA) said, “Accountants can help business to survive and help them to flourish when the upturn comes”. Analysing the business and the financial performance of an organisation is one of the most important tasks that an accountant can undertake; this is a health indicator of a company and its way to success or failure.
REASON FOR CHOOSING THE TOPIC
My reasons for selecting this topic are:
IMPORTANCE OF THE TOPIC
As highlighted in the Introduction, I feel that being able to analyse the financial and the business performance of an organisation is critical to a survival of an organisation. This makes it one of the most rewarding and satisfying tasks that an accountant can undertake.
EASY ACCESS TO INFORMATION
As I have chosen a stock exchange listed company, it is quite easy to access the financial statements and annual reports of it on the Internet, in addition to procuring the hard copies. There is no substantial need to personally go to the organisation to get the desired information.
GOOD GRASP OVER THE TOPIC
I have a good grasp over this topic due to my previous application of the formulas in my ACCA studies and the analysis of the results.
USEFUL FOR MY FUTURE CAREER AND STUDIES
I ever only analysed the financial statements of dummy companies, therefore, analysing the financial statements of a real company will help me prepare for future studies and my career.