FIN1FSA Semester 1 2019
FIN1FSA Financial Statement Analysis
Individual Assignment Semester 1, 2019
Total Marks: 30
Due time and date: 11:55pm, Sunday of Week 6, 14 April 2019
An analysis of a firm’s key success factors and risks not only involves its industry analysis but
also the strategic choices it makes in positioning itself in the industry. You are an analyst and
one of your clients request you to prepare a report and make recommendation on the risks and
profit potential of a non-financial firm listed on the ASX (Australian Securities Exchange).
Using financial report of that company communicate your advice to the client based on client’s
The financial statements represent a window on the activities of the firm, and accounting
analysis is concerned with determining the quality of information provided by such a view. As
an analyst you are requested to perform an accounting analysis using financial statements of a
non-financial firms listed on the ASX. To do so;
explain the nature of the financial statements the company reports and analyse relevant
accounting items in the financial statements that reflect the company’s business
activities and performance (hints: your analysis should specifically address company’s
financial position, financial performance and cash flow position); and discuss and
explain notes to the financial reports and the relevant GAAPs or accounting standards
connected to that note.
evaluate accounting strategy of the company (The following questions can be used to
evaluate accounting strategy: How do the company’s accounting policies compare to
the norms in the industry? Do managers face strong incentives to use accounting
discretion to manage earnings? Has the company changed any of its policies or
estimates? What is the justification? Have the company’s policies and estimates been
realistic in the past? Does the organization structure any significant business
transactions so that it can achieve certain accounting objectives?)
Organisations often use different formats and terminology to present their financial
results. These differences in financial statement formats, classifications and
terminology make it difficult to compare performance across organisations, and
sometimes to compare performance for the same organisation over time. As an analyst
in accounting analysis recast the financial statements of this company into a common
format, which involves designing a template for the balance sheet, income statement
and cash flow statement that can be used to standardise financial statements for any
company (hints: please follow the template provided in Tables 4.1-4.4 of your text
FIN1FSA Semester 1 2019
Preparing the report
Choose a non-financial firm listed on the ASX, which is NOT used in the text book or
lectures or tutorials for discussion. Communicate your chosen company via LMS
assignment registration option and ensure no two students are doing the assignment on
the same company.
Download and use the most recent financial report or annual report (minimum three
years) from the company’s website for answering assignment topics 1 & 2. The analysis
essentially follows the sequence of materials covered from lectures one to four.
Appropriate referencing is required.
The report must be structured with Introduction, Body and Conclusion, with
appropriate headings such as Industry analysis, Competitive strategy analyses,
Accounting analysis, etc. There is no need to conduct any detailed calculations.
Your report should be in a Word formatted file and submitted via Turnitin by the due
date. Word count (excluding tables, figures and appendices): 2000-word maximum.
It is extremely important that you do not copy from each other. We will watch out for
assignments with high similarity rates. Please make yourselves aware of the
Universities policies on collaboration and plagiarism and other forms of academic
misconduct such as contract cheating.
Topic 1 carries 10 marks and Topic 2 carries 20 (8+ 6 + 6) marks.