Topic overview

Complete a written report analysing The Reject Shop (TRS). The report is to include a business profile of TRS and an analysis of its industry context and must demonstrate an understanding of the users of TRS's financial information and their needs.

Your report will facilitate a more in-depth financial analysis of TRS in Assessment 2.

Assessment criteria

This assessment will measure your ability to:

• Provide a brief business profile of TRS and identify the competitive conditions in the industry and the ensuing

challenges and opportunities that will impact TRS's future financial performance 

• Identify the users of TRS's accounting information and their needs, and analyse the difficulties managers face in providing the information users need

• Write and present a professional report

Requirements

You have been hired as a consultant by an organisation that is considering the option of investing in TRS. As an initial engagement they have asked you to prepare a business report addressing the following:

1. Provide a business profile of TRS and explain the competitive conditions in the industry. Use available data (where appropriate) to explain the challenges and opportunities that could affect TRS's ability to maintain or improve its financial performance.

2. Explain the role that accounting information plays in that company by answering each of these questions.

a. Who are the users of TRS's accounting information?

b. What do they use the accounting information for (what sort of decisions do they make about TRS based on the accounting information)?

c. What are the problems faced by TRS's managers in trying to provide the information that users want?