In this assignment, students will critically analyse the different aspects of financial statements, including the application of different sources of authority and the accounting standards for corporate disclosure and for the financial reporting function. Furthermore, students will demonstrate their understanding of the different sources of funds, capital structure and provide a detailed analysis of the financial statements of an Australian publically listed company for two consecutive financial periods. Students will research and provide details of the different disclosure requirements for both listed and non-listed entities.
Students will need to access the ASX website (https://www.asx.com.au) and select a company in any industry section. Students will need to download the latest Annual report for that selected company.
Based on the selected company’s annual financial statements and related notes, students will need to prepare a business report addressing the requirements listed below. It is also a requirement to attach the main financial statements and the related notes which address the requirements below in your report.
- Discuss and provide an analysis of items in the statement of cash flow and identify item(s) which relate to the balance sheet.
- Explain the company’s performance based on Earnings per Share (EPS) and provide EPS calculations for the last two consecutive periods.
- Discuss whether EPS is a useful performance indicator for the company.
- Explain how the material movements in the statement of changes in equity is reflected and reported in the statement of cash flows.
- Discuss the items recorded as Non-Current Liabilities, including the related notes and provide an explanation of the material movements of each item.
- Based on the capital structure of the company selected, discuss the potential advantages and disadvantages of each source of capital.
Students will need to research and discuss the disclosure requirements for publically listed companies in the financial statements in comparison to other non-listed companies. Students will also need to discuss the benefit(s) of disclosing comparative information in the annual financial reports to users, including key decision makers or external users, such as investors. (Note – one page is recommended to answer this section)