ASX ENLISTED COMPANY FILE IS ATTACHED
ACC302 – Accounting Theory Trimester 2, 2020 Group Assignment Due Date: Part 1 – Week 6 (15 August 2020) Part 2 – Week 10 (12 September 2020) Value: Part 1 – 7% Part 2 – 8% Length: Part 1 – 1200 Words Part 2 – 1200 Words Referencing: Harvard Referencing Group: Email format: Maximum 3 members in a group. Please organise yourselves into groups. After the formation of the group, you must inform your lecturer by email. From : Member1@email To :
[email protected] CC : Member2@email, Member3@email Subject : Group for ACC302 Group Assignment Information provided in the email: Name of Member 1, Mobile number used for assignment communication purpose) Name of Member 2, Mobile number (used for assignment communication purpose) Name of Member 3, Mobile number (used for assignment communication purpose) Part 2 As a financial analyst you need to advise your clients to invest in different investment portfolio by buying good shares and hang onto them. Therefore, you are interested in a company’s long-term earning power. You have been allocated an ASX enlisted company. If you haven’t got it yet, please talk to your lecturer immediately. Then you need to complete the following tasks using the information of the allocated company. You must provide the page numbers of the annual report in reference using “Insert Footnote” option in Microsoft Word. Task 1: (Word limit: 400 words, 10% variation is acceptable) T5 a. Read the “Remuneration Report” section of the annual report. Give a summary of the management bonus paid in the current year in your allocated company. b. Explain the management bonus hypothesis of positive accounting theory. Task 2: (Word limit: 400 words, 10% variation is acceptable) T7 a. Read the “Sustainability Report” section of the annual report. Give a summary of how well the company have done sustainability accounting in the current year. b. Explain, why would this company need to produce sustainability report? Task 3: (Word limit: 400 words, 10% variation is acceptable) T4 a. Give a summary of the measurement assumptions / methods used in your allocated company. b. Explain, why is accounting measurement potentially controversial? Which measure methods from the following were used by your company? Explain one of them in reference of the annual report. • historical cost; • value to the business (also known as deprival value or current cost); • fair value; • realisable value; and • value in use Peer review: Each member must fill the peer review form separately and hand in to the lecturer. Appendix A. Appendix A – Peer Review form Group Name : Please remember, for more than one submission, the group will be penalised. Name & Student ID of the member who submitted the research assignment on behalf of the group in MyPIA. : Consider the contribution of yourself and each of your group members. What tasks did each group member do for the research assignment, and what proportion of the total effort do you think each group member contributed? Student ID & Name Tasks Proportion of total effort Y O U 2. 3. Consider the contribution of yourself and each of your group members. What mark would you give each person out of 10? You must explain why. Student ID & Name Mark Out of 10 Explain in detail WHY the person deserves this mark. Please note that NO ONE is perfect (i.e. worth 10 marks) Y O U 2. 3. Your Name : Time & Date : Your signature : ANNUAL REPORT 2019 ko g an.co m A nnual R ep o rt 20 19 F or p er so na l u se o nl y $30.1m EBITDA 1,609,000 Active Customers $551.8m GROSS SALES 15.6% YOY EBITDA GROWTH HIGHLIGHTS 2019 F or p er so na l u se o nl y 1Annual Report 2019 15.9% YOY GROWTH IN ACTIVE CUSTOMERS STRONG GROWTH THROUGH KEY INITIATIVES: EXCLUSIVE BRANDS KOGAN MARKETPLACE INVESTMENTS IN INVENTORY & MARKETING NEW VERTICALS EXPANSION: KOGAN MONEY HOME LOANS KOGAN CARS CONTENTS 2 Chairman’s Letter 3 Founder & CEO’s Report 6 Operating & Financial Review 18 Directors’ Report 25 Remuneration Report (Audited) 33 Auditor’s Independence Declaration 34 Financial Report 76 Directors’ Declaration 77 Independent Auditor’s Report 82 Shareholder Information 85 Corporate Directory F or p er so na l u se o nl y kogan.com2 kogan.com2 The FY19 results show the execution of a clear strategy, an agile and committed team and best-in- market consumer offerings. We adapted to changes in GST application, diversified and expanded our warehousing locations and invested in both inventory and new service offerings to support both our growth ambitions and our customer experience. In FY19 our Exclusive Brands portfolio business achieved accelerated growth of 41.6% on FY18 and Kogan Mobile grew commission-based revenue by 9.8% year-on-year. Importantly, these growth rates were off a very strong base. At 30 June 2019 we had a strong balance sheet with $27.5 million in cash and an undrawn debt facility of $30.0 million. Inventory levels were $75.9 million with more than 99% of this being less than 365 days old. Kogan.com’s portfolio continued to expand and diversify in FY19 through the launch of Kogan Marketplace, Kogan Money Home Loans and Kogan Cars. Each service offering is in partnership with industry leaders. Our aim has always been to deliver incredible value to our customers. We continue to expand our portfolio of brands and services with best-in-market offers. STRATEGIC OPPORTUNITIES At Kogan.com we see enormous opportunity for growth in both our existing businesses and in the expansion of our portfolio. We have announced agreements with industry leading partners for New Verticals set to launch during the first half of FY20. FY20 will see the launch of Kogan Money Super, Kogan Money Credit Cards, Kogan Mobile New Zealand and Kogan Energy. These new partnerships will strengthen and complement our existing portfolio of businesses. In relation to the new launches in FY19, of most significance has been Kogan Marketplace. This is proving to be a transformational step for Kogan.com as it will allow us to move to a more capital-light business model. We have a backlog of sellers wanting to join the platform and have received overwhelmingly positive feedback from our customers. PEOPLE Our team at Kogan.com is truly committed to bringing our business strategy to life across all areas of the business. On behalf of the Board, I would like to thank each and every one of our amazing team members for their hard work throughout the year. DIVIDEND Following the strong results of FY19, the Board was delighted to declare total dividends of 14.3 cents per share, fully franked. This represents year-on-year growth of 10.0%. LOOKING AHEAD Through the incredible work that has been performed in FY19, the Board truly believes Kogan.com is set to have another strong year in FY20 and beyond, and we can’t wait to deliver even better value to our customers and shareholders into the future. Greg Ridder Chairman CHAIRMAN’S LETTER I am delighted to present Kogan.com Ltd’s (Kogan.com) Annual Report for the financial year ended 30 June 2019 (FY19). This year the team delivered over half a billion dollars in Gross Sales for the first time whilst also delivering double digit growth of Gross Profit and EBITDA. F or p er so na l u se o nl y 3Annual Report 2019 FOUNDER & CEO’S REPORT We delivered strong growth in the business while we continued to invest in the future. We have made significant advancements in our mission to make the most in-demand products and services more affordable and accessible. The Kogan brand has gone from strength-to- strength over the last 12 months. Our team has worked tirelessly to deliver a wider range of products and services at exceptional prices, cementing Kogan.com as the destination for market-leading value. During the year we have also taken measures to improve our return on investment on marketing and warehousing expenses to ensure we maintain a low cost of doing business. The year had many highlights, some of which were: • Gross Sales exceeding half a billion dollars for the first time ever; • Double digit growth of Gross Sales (12.0%), Gross Profit (12.5%) and EBITDA (15.6%) on last year; • Growth of Active Customers by 15.9% on FY18, now totalling more than 1.6 million; • Accelerated growth of our Exclusive Brands product division, achieving growth year-on-year of 41.6%; • Expanding our warehousing footprint to 13 locations, providing faster and cheaper fulfilment to our customers; • Achieving strong growth of Kogan Mobile, Kogan Internet and Kogan Insurance; • The launch of Kogan Marketplace, Kogan Money Home Loans and Kogan Cars; • The announcement of Kogan Money Super, Kogan Money Credit Cards, Kogan Mobile New Zealand and Kogan Energy, all expected to launch in 1HFY20. These key highlights are the result of meticulous planning and execution by the Kogan team during the year. BUILDING THE KOGAN.COM PORTFOLIO At Kogan.com, everything we do revolves around our promise to our loyal customers, to make the most in-demand products and services more accessible and affordable. By delivering on this promise over the past 13+ years, Kogan.com has become synonymous with value and trust. It has allowed us to leverage our brand to expand into a portfolio of products and