Assignment Specifications Purpose: In this individual assignment, students will critically analyse the different aspects of financial statements, including the application of different sources of...

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Assignment Specifications Purpose:


In this individual assignment, students will critically analyse the different aspects of financial statements, including the application of different sources of authority and the accounting standards for corporate disclosure and for the financial reporting function. Furthermore, students will demonstrate their understanding of the different sources of funds, capital structure and provide a detailed analysis of the financial statements of an Australian publically listed company for two consecutive financial periods. Students will research and provide details of the different disclosure requirements for both listed and non-listed entities.


Assessment Task:


Part A


Students will need to access the ASX website (https://www.asx.com.au) and select a company in any industry section. Students will need to download the latest Annual report for that selected company.


Based on theselected company’sannual financial statements and related notes, students will need to prepare a business report addressing the requirements listed below. It is also a requirement to attach the main financial


statements


and the related notes which address the requirements below in your report.




  1. Discuss and provide an analysis of items in the statement of cash flow and identify item(s) which relate to the balance sheet.




  2. Explain thecompany’s performance based on Earnings per Share (EPS) and provide EPS calculations for the last two consecutive periods.




  3. Discuss whether EPS is a useful performance indicator for the company.




  4. Explain how the material movements in the statement of changes in equity is reflected and reported in the statement of cash flows.




  5. Discuss the items recorded as Non-Current Liabilities, including the related notes and provide an explanation of the material movements of each item.




  6. Based on the capital structure of the company selected, discuss the potential advantages and disadvantages of each source of capital.




Part B


Students will need to research and discuss the disclosure requirements for publically listed companies in the financial statements in comparison to other non-listed companies. Students will also need to discuss the benefit(s) of disclosing comparative information in the annual financial reports to users, including key decision makers or external users, such as investors. (Note - one page is recommended to answer this section)


HA2032 Corporate and Financial Accounting


Page2of6


The assignment structure must be as follows:




  •  Holmes Institute Assignment Cover Sheet–Full Name, Student No., Campus, Session No.




  •  Executive Summary




oThe Executive Summary appears as a short paragraph on the first page of the report.
oThe Executive summary should be concise and not involve too much detail.
oIt should be a summary of themain points only, the conclusions and analysisof the report.
oWritetheExecutiveSummaryafterthereportiscompleted,andonceyouhaveanoverviewof


the whole report.


o50-100wordsisrecommended




  •  Table of Contents Page–This needs to show a logical listing of all the sub-headings of the report’s


    contents. (Note this is excluded from the total word count.)




  •  Introduction–A short paragraph which includes background and/or scope and the main points raised


    in order of importance. There should be a brief conclusion statement at the end of the Introduction.




  •  Main Body Paragraphswith numbered sub-headings–Detailed information which elaborates on the main points raised in the Introduction. Each paragraph should begin with a clear topic sentence, then supporting sentences with facts and /or relevant information (evidence) and finish with a concluding


    sentence at the end.




  •  Conclusion–A logical and coherent evaluation based on a thorough and objective assessment of the


    work performed.




  •  References–Credible Academic sources must be used, such as peer reviewed journals or authoritative


    textbooks. The Harvard referencing style is required.




  •  Appendices–Include any additional explanatory information which is supplementary and/ or graphical


    to help communicate the main ideas made in the report. Refer to the appendices in the main body paragraphs, as and where appropriate. (Note this is excluded from the total word count.)



Answered Same DayJun 02, 2021HA2032

Answer To: Assignment Specifications Purpose: In this individual assignment, students will critically analyse...

Harshit answered on Jun 06 2021
137 Votes
CORPORATE AND FINANCIAL ACCOUNTING
    Serial Number
    Contents
    Page Number
    1.
    Introduction
    1
    2.
    Cash flow Statement
    2
    3.
    Earnings Per Share
    3
    4.
    EPS as a performance indicator
    4
    5.
    Movements in the statement of changes in equity
    5
    6.
    Non-Current Liabilities
    6-7
    7.
    Advantages and disadvantages of sources of capital
    8-9
    8.
    Disclosure Requirements
    10
    9.
    Conclu
sion
    11
    10.
    Referencing
    12
INTRODUCTION
This project is prepared on Wesfarmers Limited. Wesfarmers was incorporated in the year 1914 and has become one of the largest companies in Australia and also is recognized globally. The company has earned revenue of $29.9 billion from continuing operations. The net profit after tax(PAT) of a company by continuing operations(CO) and excluding significant-items is $1.9 billion. The dividends-per-share(DPS) are $2.78 including $1.00 as a special-dividend.
The currency in this assignment is Australian Dollars or AUD and the financial period being first of July to thirtieth of June.
PART - A
1. Cash Flow Analysis
Cash Flow(CF) analysis is an analysis of inflows and outflows of cash from the company during the financial year. Cash-Flow is divided into three categories:-
A. Cash-Flow-from-Operating-Activities(CFOA);
B. Cash-Flow-from-Investing-Activities(CFIA); and
C. Cash-Flow-from-Financing-Activities(CFFA).
· Cash-Flow-from-Operating-Activities(CFOA):-
Cash-flow-from-operating-activities(CFOA) means cash generated by the company from day to day business operations. The net cash flow from operating activity of the company (Wesfarmers) has decreased from $ 4,080 million to $2,718 million. From the cash flow, it seems that there has been a decrease in the operations as there is a decrease in receipts of cash from customers and payment of cash to suppliers and workers.

· Cash-Flow-from-Investing-Activities(CFIA):-
Cash-flow-from-investing-activities(CFIA) includes buying and disposing of assets of the company. It also includes investment in other companies as associates or subsidiaries. The Cash-Flow-from-Investing-Activities(CFIA) of the company is positive. There has been an increase in cash of $903 million as compared to the last year i.e. year ending 30th June 2018. During the present year, the company has made the payment for Property-plant and equipment(PPE), and intangible assets(IA) of $1,356 million which is $459 million less than the last year. Further, the company has also sold one of its associates which has generated a cash flow of $231 million.
· Cash-Flow-from-Financing-Activities(CFFA):-
Financing Activities consists of buying back or issuing shares, dividend paid and borrowing or repayment of loans. The proceeds from the borrowing of the company have increased considerably whereas the repayment of the borrowings has decreased (Subramanyam, K.R., 2014). Therefore, there is an increase in net cash flow from financing activities as compared to the previous year 9 Petersen, C.V. and Plenborg, T., 2012).
The net cash and cash equivalents of the company at the end of the year has increased from S683 million to $795 million.
2. Earnings Per Share(EPS)
Earnings-per-Share(EPS) is the apportionment of the company's profit or distributable profit that is apportioned to every outstanding share of the company as a part of equity share capital. The net profit of the company is distributed to the number of equity shares. When the EPS of a company is high, it indicates that the company has a good performance of distributable profit at per share level.

Wesfarmers had the Basic Earnings per share of 487.2 cents in the year 2019 and 105.8 cents in the year 2018. The Diluted-Earnings-per-share of the company were 486.7 cents in the year 2019 and 105.6 cents in the year 2018.
Calculation of EPS
    Earnings-Per Share(EPS)
    =
    Net Income-Preferred Dividends
    
    
    Weighted-Average-of-Outstanding-Shares(WAOS) at the end of the Year

    Particulars
    2019
    2018
    Profit attributable to the Shareholders ($m)
    5510
    1197
    Weighted-average-of-ordinary-shares(WAOS) used in the...
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