All listed companies are required to prepare annual reports and lodge these with the ASX. While this is a legal requirement, managers can use information prepared by accountants on a regular basis to make a range of operational, strategic and management decisions. Additionally investors, employees, creditors and other stakeholders use the information provided in annual reports. Collectively, financial statement users use a range of interpretive techniques to make assessments and draw conclusions about a company. This assignment provides you with an opportunity to review and analyse the financial statements of a firm chosen from an approved list of ASX listed firms.
Referring to the most recent annual report of the firm you have selected from the approved list:
Provides a brief overview of the nature of the firm. This introduction should discuss the firm\’s products/brands, history, size and the locations of the firm\’s operations (10 Marks).
Discusses how the firms balance sheet, income statement and cash flow statement could be used to support the decisions of a range of specific stakeholders of the firm (15 Marks).
Identifies the key assets, liabilities, equity classes, incomes and expenses which impact the firms reported position and performance (10 Marks).
Outlines how the measurement of the firm\’s key assets is influenced by underlying accounting conventions and by managerial judgement (10 Marks).
Conducts an analysis of the financial performance and position of your firm. This analysis should be supported by an in-depth analysis of relevant ratios which help to understand the firms profitability, liquidity, solvency and efficiency (at least 2 ratios for each should be discussed). This analysis should include comparisons through time to identify trends and comparisons to at least one other firm. You are encouraged to make use of relevant charts, tables and/or figures prepared in Excel to summarise your findings. Relevant ratio data can be accessed through the OneSource database you are not required to calculate the ratios on your own (40 Marks).
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