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Bond University ACCT11-100

ACCOUNTING FOR DECISION MAKING

· 案例展示

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.

  1. Title page
  1. Executive summary
  • An executive summary provides a statement of the objectives, the key findingsrecommendations, and a summary of the key reasons for that recommendation.  It does not introduce someone to the background of the report. It gives the key facts and should motivate the reader to read more of the report.  Should be half to one page in length. 
  1. Table of contents
  1. Objectivesof the report
  1. An overview of the major industrycompetitorsand companies
  • This section should include company and industry facts, structure, economic drivers, outlook and performance.  Include any information relevant to your report. Graphs and tables are appropriate.
  1. Commentary on the Directors’ Report*

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.

  1. Analysis of the Statement of Financial Performance

(Income Statement / profit or loss statement)

  • This section should include a discussion and comparison around the information disclosed on the income statement (profit or loss statement) presented in the financial statements (usually two years of data) of your companies.
  • Higher marks will be awarded to those students who analyse why and how the statements appears as they do, as opposed to simply summarising the information presented – add your own supported thoughts and ideas.
  1. Analysis of the Statement of Financial Position (balance sheet)
  • This section should include a discussion and comparison around the information disclosed on the statement of financial position presented in the financial statements (usually two years of data) of your companies.
  • Higher marks will be awarded to those students who analyse why and how the statements appears as they do, as opposed to simply summarising the information presented – add your own supported thoughts and ideas.
  1. Analysis of the Statement of Cash Flows
  • This section should include a discussion and comparison around the information disclosed on the statement of cash flows presented in the financial statements (usually two years of data) of your companies. 
  • Higher marks will be awarded to those students who analyse why and how the statements appears as they do, as opposed to simply summarising the information presented – add your own supported thoughts and ideas.
  • How does this information interact with information contained in the other financial statements?
  1. Analysis of five key ratios
  • Calculate the FIVE key ratios for your two/three companies five-year period (that is, five ratios of two/three companies for five years).
  • Present, interpret, compare, analyse and comment on your findings and their implications.  
  • The use of tables and graphsis appropriate for this section.
  • The five key ratiosyou should use are:
    1. Current ratio
    2. Debt to equity
    3. Return on assets
    4. Profit ratio (can be EBIT or net profit ratio)
    5. P/E ratio
  1. SWOT analysis 
  • Prepare a SWOT analysis (strengths, weaknesses, opportunities and threats) table for each company.  That is, three (3) as a minimum.   
  • Ideas should be drawn from the information in your report.  (that is, your report should make some comparisons between your companies.
  • SWOT tables must be native to Word.  Tables that are images or photos will be marked as though they are missing – that is, not marked. 
  1. Recommendations and conclusion 
  • After analysing the SWOT, what recommendation(s)would you provide investors about investment in these companies and/or industry? For example,
  1. Are there any key issues that the companies needs to address?
  2. If you had $100,000 to invest in the stock market, would you invest in any of the companies you have analysed? Why or why not? 
  3. Are they a good short-term or long-term investment? 
  • Yourconclusionshould address your report’s objectives and be fully supported by your report content.  Do not introduce new ideas in the conclusion.
  1. References and appendices 
  • APA style is preferred. Referencing guides can be found at: http://www.bond.edu.au/library/tools/cite/index.html
  • Your attention is drawn to the faculty’s plagiarism policy, which is accessed through the Bond website. 
  • Appendices are graphs, tables and other supporting data that are supplementary to the main discussion but do not belong in the main body of the report. 
  1. Presentation and writing style
  • Is your report appropriately formatted, written and presented (for example, 12 point font, 1.5 line spacing)?
  • Does the report have a suitable flow and structure?
  • Have you used the correct terminology and vocabulary in context?
  • Are your graphs, tables, pictures and/or figures readable, labelled and used appropriately?
  • Have you corrected minor errors in your report during the proof reading process?
  • Exceeding the word count may result in penalties.
  • Australian Stock Exchange(www.asx.com.au) 
  • Bloomberg

Library – 3 terminals

Macquarie Trading Room – 12 terminals

Building 6 Room 4_07 – 14 terminals

  • Mainstream and Financial Press 

For example:

  • The Financial Review
  • The Australian 
  • Brisbane Times (brisbanetimes.com.au)
  • News.com.au
  • Company Website 

You can find additional data on your chosen company’s website.

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