Financial Reporting Assessment

Learning Outcomes -

1) Understand the basic concepts and theories of financial reporting.

2) Discuss a regulatory framework for financial reporting, awareness of and experience in applying the Australian equivalents of international standards that deal with specific industries, contexts and financial statement items.

3) Prepare and present financial statements logically and professionally which conform with International financial reporting standards to local and international audience.

4) Conduct an in-depth analysis of a firm's financial performance and understand how its external reporting is affected by various economic conditions.

Assessment purpose

The assignment is designed to enhance students' skills in analysing the financing sources of Australian public listed companies as well as evaluating differences and similarities in their financial reporting framework

ASSESSMENT DESCRIPTION:

Students are required to work in a group of 3 - 4 students in the performance of this written report. Students must register for their group with the lecturer during the first three weeks of the trimester and are not allowed to change group members afterward.

Every group for this assignment is required to select any two public listed companies in the Australian Stock Exchange ASX and then write a report to evaluate their financing sources, by using their latest financial statements (annual reports) and relevant research materials if necessary.

• Hint: The two companies can be from the same industry (Coles v.s. Woolworths) or from different industries (ANZ v.s. BHP Billiton).
• You have to be clever and pragmatic on selecting the company. It has to be large, substantial and must have available information for desk research. You are required to explore and collect information on the company to complete this assignment. Additional research is also required for this written report.

It is highly expected from you to purport the following perspective of the report:

a. Introduction of the two selected companies

• Company's name
• Establishment year
• Main activities
• Products or services
• Organizational structure
• Business achievement

b. Identification and evaluation of the companies' financing sources FOR EACH COMPANY

Identify correctly all financing sources of the company: leverage, equity issuing. Describe in details of the company's financing sources were given.

i. Short term debt, intermediate term debt, long term debt

ii. Equity: ordinary share, preference share, redeemable share, management share...

Analyse the capital structure, and important financial ratios

Relate the company's financing structure and its financial reporting framework with the nature of its business and with nature of the overall financial market condition.

c. Analysis and comparison of the companies' financing sources

• Identify and explain clearly the similarities and differences between the two companies' financing sources and financial reporting framework.
• Provide possible reasons for the differences and similarities in their financing sources and financial reporting framework.

d. Summary of interesting findings and any recommendation/prediction.

• Summarize and present FOUR significant points of the discussion topics in your report in a coherent manner.
• Provide recommendation or forecast.