Description

For task 1, there needs to be changes done for each adjustment, see appendix 1 and 2. Please only do adjustments 5,6,7,8 and 9 as I will be doing the rest myself. Also please include a justification as to what changes you did for each adjustment, but also why some changes do not need to be done. Sometimes there are errors in the adjustment for instance that land cannot be depreciated (Adjustment 2) and these can be found on www.iasplus.com. Please also use that website for reference when some adjustment cannot be made. For task 2, please compare ratios of IHG and EasyHotel PLC. I will provide an excel sheet where ratios are given for these two hotels. The excel sheets shows the ratios which we need to discuss in task 2. To see whether rapston should purchase EasyHotel the ratios of IHG should be taken and 25% of the ratios of IHG should be demonstrated as Rapstons ratios. And then these should be compared to EasyHotels. You should look at the years of 2019 but also just see if there are any trends in the years before if necessary. This is this the financial analysis of the two hotels. As Rapston Hotel is a fictional hotel, it is important to take 25% of the size of IHG for Rapstons financial statements. Thereafter, please compare these ratios and justify whether rapston should be purchasing Easyhotel PLC through financial analysis but also strategic analysis. Strategic analysis meaning including:
– target market
– marketing strategy
– method of business operations
– how they are financed
– location of operations etc.

It is also important to watch the video of ICAEW without questions and use that video to have a better understanding of the situation. The link is here: https://www.icaew.com/learning-and-development/icaew-educational-films/without-question

It is a 44 min video.

Thank you.