Accounting assignment
1 Assignment for Submission Subject: BUACC 5930, Accounting Concepts and Practices Semester 1, 2020 This is a Group Assignment. This is due in week 10 or 11. All questions must be completed. Question 1. Lendlease is an international property and infrastructure Company. It is currently the fifth largest in Australia. The 2019 integrated annual report for the Company is provided on the subject Moodle shell. Using the 2019 Report, compare the financial results of the Company between 2018 and 2019. You should use any financial information provided in the 2019 reports (including ratios, and narratives) to conclude on the improvements or not in financial position and profitability. You discussion should focus on reasons for this. What other information would you need to make an assessment of Lendlease? Word Limit 1100 words, Marks = 45 Question 2. The 2019 integrated annual report is the fourth for Lendlease. Explain what is an integrated report, and how Lendlease is Managing and Measuring Value. What is your opinion of the Sustainability achievements of Lendlease? Word Limit 750 words, Marks = 30 2 Question 3: Exercise 12.10 McClean, Roberts and Associates page 570, Hoggett et al., (2018) (10 marks) Question 4. Exercise 18.9 Trinh’s Nail Supplies, page 843-844, Hoggett et al., (2018) Part a only. (10 marks) 3 BUACC5930, Group Assignment Marking Scheme Names: Student Numbers: Bases of assessment Marks Possible Question 1 Comparing the financial results from 2018 to 2019. Use of key results (and their explanation) including ratios and narrations (15 marks). Discussion on the improvements or not in financial position and profitability, and reasons (15 marks). What other information would you need to make an assessment of the company? (15 marks) / 45 Question 2. Examination of how Lendlease is Managing and Measuring Value (10 marks) How do you rate the sustainability of Lendlease? (20 marks). / 30 Question 3 Presentation and Accuracy of all parts / 10 Question 4 Presentation and Accuracy of all parts / 10 Overall Presentation – including cover page, line spacing, page numbering, referencing according to the APA 7. (see https://federation.edu.au/library/guides/help- with-referencing / 5 Total / 100 https://federation.edu.au/library/guides/help-with-referencing https://federation.edu.au/library/guides/help-with-referencing 19 August 2019 Lendlease Corporation Limited ABN 32 000 226 228 and Lendlease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lendlease Trust ABN 39 944 184 773 ARSN 128 052 595 Level 14, Tower Three, International Towers Sydney Telephone +61 2 9236 6111 Exchange Place, 300 Barangaroo Avenue Facsimile +61 2 9252 2192 Barangaroo NSW 2000 Australia lendlease.com Lendlease Group 2019 Annual Report Lendlease Group today announced its results for the year ended 30 June 2019. Attached is the 2019 Annual Report, including: ▪ Directors’ Report ▪ Remuneration Report ▪ FY19 Financial Statements ENDS FOR FURTHER INFORMATION, PLEASE CONTACT: Investors: Media: Justin McCarthy Stephen Ellaway Mob: +61 422 800 321 Mob: +61 417 851 287 Lendlease Annual Report 2019 As the world reinvents itself Lendlease Annual Report 2019 / 33 / 4. Managing and Measuring Value 38 Our five focus areas of value creation 40 Health and Safety 42 Financial 44 Our Customers 46 Our People 48 Sustainability 50 5. Risk 56 Risk governance and management 58 Key risks and mitigation 60 6. Performance and Outlook 62 7. Governance 76 Board of Directors’ information 78 Remuneration Report 92 Directors’ Report 124 Lead Auditor’s Independence Declaration 126 8. Financial Statements 128 9. Other Information 198 Securityholder information 200 Glossary 203 Corporate Directory 204 Contents Directors’ Report 1. Our Business 4 Our vision to create the best places 6 FY19 highlights 8 Chairman’s Report 10 Group CEO and Managing Director’s Report 12 2. The Role We Play 14 Our strategy and capabilities 16 Global presence, gateway cities 17 Global trends influencing our strategy 18 Development 20 Construction 22 Investments 24 3. The Value We Create 26 Partnering 28 Connected developments 30 Populations are changing 32 Sustainable communities matter 34 Creating the future 36 Lendlease Corporation Limited ABN 32 000 226 228 Incorporated in NSW Australia Lendlease Responsible Entity Limited ABN 72 122 883 185 | AFS Licence 308983 as responsible entity for Lendlease Trust ABN 39 944 184 773 | ARSN 128 052 595 The world in which we operate is rapidly changing. A number of global trends, including urbanisation and technology, are reshaping the way people across the planet live. Increasingly, governments and our other customers are looking to Lendlease for solutions. Fittingly, the theme of this year’s annual report is ‘as the world reinvents itself’. At Lendlease, we have five focus areas that contribute to creating long-term value for our securityholders and the broader community. Icons are used throughout the report linking our activities to this value creation. Lendlease presents its fourth integrated annual report to communicate how our business operates, our competitive advantage, and our performance and outlook. Front Cover The Exchange, Darling Square, Sydney Almost 20km of sustainably sourced timber wraps The Exchange, or as locals call it, the ‘bamboo basket’. Award-winning International House, Barangaroo South, Sydney In shaping cities and creating noteworthy places, we look to innovate around product and design. About this report The Lendlease Annual Report 2019 has been prepared with reference to the International Integrated Reporting (IR) Framework that encourages businesses to consider what creates value for them and how this value contributes to long-term sustainable returns for securityholders. Materiality A matter is considered material if Lendlease’s senior management and those charged with governance believe it could significantly impact the value created and delivered in the short, medium and long term. Lendlease identifies and captures material matters through the following processes: • Project Control Group (PCG) sessions, which include key internal stakeholders and represent the governance structure for overseeing the completion of the annual report • Capturing feedback through engagement and research during the financial year from key external stakeholders including investors, analysts, and other relevant groups • Engagement with the Board • Confirming that the strategy and the global trends influencing our strategy are consistent and relevant with the information collected above. The outcomes of these processes are the material issues noted on page 40, and our strategy and the global trends influencing it on pages 16 to 19. Directors’ Report and Operating and Financial Review (OFR) The required elements of the Directors’ Report, including the OFR, are featured on pages 4 to 127 of this report and include the sections: Our Business, The Role We Play, The Value We Create, Managing and Measuring Value, Risk, Performance and Outlook, and Governance. The OFR is covered specifically on pages 4 to 75. All non-financial metrics included in the Directors’ Report on pages 4 to 61 have been verified through our internal verification process. The Remuneration Report on pages 92 to 123 and the Financial Statements on pages 128 to 190 have been audited by KPMG. Reporting suite Lendlease’s Reporting Suite provides information about the organisation and its key financial and operational achievements including: • The Annual Report. Features information on Lendlease, our strategy, integrated financial and operational performance, corporate governance, Directors’ Report, Remuneration Report and Financial Statements • Bi-annual Results Presentation. The current reporting period’s financial results and detailed segment information for projects, investments and pipeline • www.lendlease.com Includes additional information on sustainability reporting, corporate governance, tax compliance and historical financial information. All financial amounts in this report are in Australian dollars unless otherwise specified. Lendlease Annual Report 2019 / Our Business / 5As the world reinvents itself4 / Our Business Southbank, Chicago (artist’s impression) Lendlease is undertaking a major revitalisation on the banks of the Chicago River, on a site that has been mostly dormant for half a century. 1 Being bold and innovative characterises our approach and doing what matters defines our intent. We create award-winning urban precincts, new communities for older people and young families just starting out, retail precincts, and work places to the highest sustainability standards. We are also privileged to create essential civic and social infrastructure including state-of- the-art hospitals, universities and stadiums around the world. Lendlease has been entrusted with many projects of public, cultural and social significance: constructing the Sydney Opera House, creating the National September 11 Memorial & Museum in New York, and restoring and renovating historic buildings such as London’s Tate Britain and National Theatre. As we expand our experience and our footprint, we aspire to continue creating places people want and care about, and providing value for securityholders and the broader community. Headquartered in Sydney, our people are located in four operating regions: Australia, Europe, the Americas and Asia. Lendlease is an international property and infrastructure group with core expertise in shaping cities and creating strong and connected communities. As the world reinvents itself6 / Lendlease Annual Report 2019 / Our Business / 7 Our values. Respect Be dedicated to relationships. Integrity Be true to our word. Innovation Be challenging in our approach. Collaboration Be one team. Excellence Be exceptional in everything we do. Trust Be open and transparent. Our values guide our actions so we can do our best work and create long-term value for securityholders and the community. Our best work. Places where people