Management - Report 1 Due Assessment Answer

Report 1 Due date: Week 9 - Wednesday 1 May at 11:55 a.m. This assignment is designed to get you to locate the Annual Report for a company and become familiar with its contents, particularly the financial statements and the notes to the financial statements. While we have looked at very basic formats of the financial statements, the financial statements for a company contain much more detailed information much of which you have not been introduced to as yet. Pay particular attention in the Annual Report to the information provided in the notes to the financial statements as you will find a lot of useful information in them that may help with some of the assignment questions. REQUIRED: Your instructor will assign you one of four Australian retail companies that are listed on the Australian Securities Exchange (ASX.com.au) as follows: Harvey Norman, Myers, JB Hi Fi, Metcash. You are required to obtain the 2018 Annual Report for your group’s chosen company. How to access the financial reports of the company: Go to ASX.com.au. Under “Prices and research”, click on “Company information” and type the name the company. Once the company information is opened, on the right-hand side, open the “Annual report”. Answer the following questions using the 2018 Annual Report of your company. (Total assignments marks 100 and will be scaled down to 25) REPORT 1 – THE COMPANY (100 marks to be scaled down to 25 marks) Question 1 (7 mark) Describe the principal activities of the company? Question 2 (7 mark) Define the revenue recognition criteria of the company and identify the page number and note number where this is stated in the annual report? Question 3 (7 mark) Describe how the company values all classes of property, plant and equipment? Identify the page number and note number where this is stated in the annual report? Question 4 (7 marks) Name the Audit firm responsible for performing the audit of the financial statements of the company. Explain why the auditor must declare their Page 2 of 6 independence, and also explain why the financial statements must be audited by an external party. Question 5 (7 marks) Provide any evidence of the company’s initiative or commitment to business sustainability practices. Why are businesses concerned about sustainability? Question 6 (65 marks) Interpret and evaluate the statement of comprehensive income (or income statement), the statement of financial position of the company and the cash flow statement. Discuss the financial performance and the financial stability of the company. Page 3 of 6 Here are some useful websites you may use. Please search for other useful information on the web and have a look at your book (trust me you will find great stuff in it :-) https://www.investopedia.com/terms/f/financial-statements.asp https://investinganswers.com/articles/financial-statement-analysis-beginners You can discuss trends and year to year comparison for the same company, comparison with similar businesses, and significant items in the financial statements of the company. You do not need to calculate ratios. You do not need to prepare common size statements, vertical and horizontal analysis. OTHER IMPORTANT INFORMATION Assessment Description Required: This assignment is to be completed in teams of two-three students. All questions, must be attempted. The assignment must be submitted before Wednesday 1 March at 11:55 a.m to avoid any late penalties. Word Count: 1500. Title page and references will not be included in the word count. You must indicate your word count on the cover page of your report. Submissions that exceed the word count by more or less than 10% will get a penalty of 5%. Format: Font: Times New Roman Size: 12 Line spacing: 1.5 Plagiarism: Any work which has been copied or shared between teams will result in a Fail grade (zero) for all students concerned. So please make sure that the answer to Page 4 of 6 this team assignment is your own work and not copied from any source. Students with plagiarism detected in their work can re-submit the report, but the total marks of this report will be reduced to half (12.5% of the final mark rather than 25). Submission: The assignment will need to be submitted electronically through TurnitIn and a hard copy to be submitted to your lecturer in class. Only one student to submit on behalf of the group. Referencing: As you will be using a company’s Annual Report as the basis for answering many of the questions asked in this assignment, you need to ensure that you acknowledge this in your assignment. In fact, any sources that you use need to be acknowledged in order to avoid plagiarism. Referencing Style: Harvard In-Text Referencing and the Reference List: Sources of information must be cited both in the body of the text (in-text referencing) and the end of the assignment (reference list). Failure to do so will result in penalties. Remember that when referencing an Annual Report it is a corporate document that does not have a particular author but it will still require referencing any time you use information from it. Any other documents or books or other references you use will also require referencing. Penalties Regarding Referencing: No in-text referencing – deduct 1 marks Some in-text referencing only – deduct 1 mark No reference list – deduct 2 marks Incomplete reference list – deduct 1 mark Policy on Late Submissions: Late submissions will automatically be penalised at a rate of 5% per day for each of the first 2 calendar days it is late, and 10% per calendar day for any subsequent days. Submissions will NOT be accepted if more than 5 calendar days late, unless formal, prior approval has been given. Extensions are normally only granted in cases of exceptional and genuine hardship (this does not include inconvenience, poor planning, pressure from work or work commitments). Page 5 of 6 Students seeking an extension of seven calendar days or less (from the original due date) must contact their lecturer at least 5 days BEFORE the due date for submission. Applications for extensions of 7 or more calendar days are made using the Special Consideration Process. ASSIGNMENT TOTAL – 100 Marks and will be scaled down to count for 25 marks of the total marks for the subject