DUE DATE: Sunday 24 February (Week 6) – 11.59pm
WORD COUNT: Maximum 3,500 words
(Excluding appendices, table of contents and executive summary)
The objective of this task is to analyse the annual reports of two/three Australian-listed companies and provide an investment recommendation(s). The project also has the educational objectives of encouraging initiative, inquisitiveness and the development of basic financial statement analysis skills.
This is a group task that is designed to build your research, analysis and business report writing skills. This project will require you to use online databases to search and obtain market wide information, company financial statements, financial media and annual reports.
Each group is to analyse the companies allocated to the individual group members for assignment 1 – Event Study. If there are three group members, then the group report will compare, contrast and analyse all three companies. If there are only two group members, then the group report will compare, contrast and analyse just the two companies.
You will also utilise the key business desk top analysis tool, “Excel”, to manipulate the data you obtain to calculate, analyse and produce graphical representations of the key information.
You may like to refer to the course textbook by Horngren Accounting (8thEd.),giving emphasis on the contents of Chapter 18 Financial Statement Analysis, to evaluate and put into context the information produced and released by the company.
Read the directors’ reports* of your companies’ annual report/financial statements. Choose one (1) key factors from each company. Analyse how they impact the companies and, if appropriate, industry.
* Some annual reports are prepared under the rules of different geographical jurisdictions (for example, Air New Zealand and ResMed) and as such there not be a “directors’ report”. Therefore, all students may refer to other parts of the annual report, such as the “Chairman’s / CEO / Managing Director’s Report”, to identify the three (3) key factors. If you are unsure, check with your instructor.
(Income Statement / profit or loss statement)
Library – 3 terminals
Macquarie Trading Room – 12 terminals
Building 6 Room 4_07 – 14 terminals
You can find additional data on your chosen company’s website.