Accounting and Financial Management Trimester 3- 2023
Information for Business Report on Company Annual Report Analysis
1.
Introduction
In this assessment, your focus will be on delving into the realms of accounting and financial management, corporate social responsibility (CSR), sustainability, and corporate governance, all through a meticulous analysis of a company’s annual report. This assignment offers an exciting opportunity to apply the knowledge you have acquired in these critical domains. The primary objective of this assessment is to meticulously scrutinise a selected company’s financial performance and position, employing a diverse range of financial ratios. Additionally, it involves a comprehensive evaluation of the company’s CSR report, its sustainability endeavours, and the efficacy of its corporate governance practices. You will closely examine the company’s disclosures on social and environmental concerns, assess its specific initiatives, evaluate the presentation and substance of its CSR report, and gauge its commitment to the United Nations’ Sustainable Development Goals (SDGs). Furthermore, you will critically appraise the company’s adherence to corporate governance principles and suggest necessary improvements.
3.
Length
The report should be 3,000 words maximum. This excludes the title page, executive summary, table of contents, charts, diagrams, tables, list of references and appendices. Students MUST declare the word count at the end of the report just below the list of references. If the report is less or more than 10% of the stated word limit, 10% of the mark provisionally awarded to the
assignment will be deducted.
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4.
Weighting: 40% (Marked out of 100)
5.
Due date: 8th November 2023 (Wednesday in examinations week 1). Final submission time:
10:00 AM
7.
Structure of the Report
Body of the report
1: Introduction
In this section, provide an overview of the company you are analysing, including its industry sector, key players, competition, present performance, and future opportunities and threats to the sector. Also, state the purpose of the analysis and how the report is organised.
250 words
maximum
2: Discussion and the analysis of the report’s findings
In this section, answer the questions stated in the report detail section below with appropriate headings
2,500 words maximum
(the following points in A,B,C,D)should be included in 2
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A. As the financial manager of the business, your responsibility is to evaluate the financial performance and position of the company for the year 2022. Your assessment will be based on your analysis of various ratios, comparing them with the previous period/ other competitors/ and industry averages. By calculating these ratios and providing commentary on the following aspects of the company, you will offer insights into its financial well-being and areas that may require improvement:
I. Profitability (Operating profit margin and Return on Assets)
II. Efficiency (Total assets turnover ratio and Fixed assets turnover ratio)
III. Liquidity (Current ratio and Acid Test ratio)
IV. Gearing (Gearing ratio and interest cover ratio)
V. Investment (Dividend payout ratio and Earnings per share ratio)
VI. Overall financial performance and financial status (750 words maximum- 25 marks).
B. Conduct a review of the Corporate Social Responsibility (CSR) report, Sustainability Report, or Social Audit Report of the company you are investigating. While you’re not expected to scrutinise the entire document, consider the following questions in your analysis:
I. Does the company publicly disclose information pertaining to social and environmental issues? Provide evidence from the report to support your answer.
II. Identify and provide a brief description of five distinct social and environmental issues or initiatives that the company addresses in its report.
III. Evaluate the presentation and content of the CSR report. What unique or engaging elements does the company incorporate into its report? This could include visual aids, case studies, or other innovative presentation methods.
IV. Identify the Sustainable Development Goals (SDGs) that the company has committed to implementing. Evaluate and discuss their effectiveness and impact on the company’s overall sustainability strategy.
(750 words maximum-15 marks).
C. Carefully review the corporate governance information in the company annual report and assess the company’s compliance with the guidelines provided by the Australian Securities Exchange Corporate Governance Council (ASXCGC). Use the following link to access the ASXCGC principles and recommendations: [cgc-principles-and-recommendations-fourth- edn.pdf (asx.com.au)].
I. Discuss the extent to which the company adheres to the ASXCGC principles and recommendations and highlight areas of full compliance and discuss their potential implications on the company’s corporate governance.
II. Identify and evaluate any areas where the company might not fully comply, and Offer suggestions for how the company might improve its compliance with ASXCGC guidelines in the future.
(400 words maximum-10 marks).
D. Identify and provide insights into the significant capital budgeting choices recently made by the company, which may have necessitated the application of capital appraisal methods such as the payback period, net present value (NPV), and internal rate of return (IRR). Please reference the annual report, where pertinent information about these projects can be found.
(300 words maximum-10 marks).
E. Conduct an analysis of the operating cash cycle of the company, and evaluate the company’s performance concerning its working capital management. Provide insightful commentary on areas where further improvements can be made.
(300 words maximum-10 marks).
(A,B,C,D) pints to be included in 2
Then
3 Conclusions and recommendaitons (10%) – Concise summary of the main points, arguments, conclusions, and recommendations.
4 Referencing (5%) Harvard referencing style is used within the report’s body and in the reference list. Referenced all materials, except the student’s own, used in the report.
11. Marking standards
The following rubric evaluates your company analysis report, encompassing various aspects such as
financial performance, non-financial analysis (ESG), corporate governance, recommendations, and references. This rubric ensures a fair and thorough assessment of the report’s quality.
1. Executive summary (5%) – Concise summary of the main points, arguments, conclusions, and recommendations.
2. Introduction (5%) – Company overview, Terms of reference (purpose of the report), methods and outline of report’s structure.
3. Content (70%)-
Part A: Financial Analysis (25%)
Part B: ESG analysis (15%)
Part C: Corporate Governance (10%)
Part D: Capital budgeting (10%)
Part E: Working capital management (10%)
Relevant and specific description/discussion on the aspect(s) of the company that you analyse and clear demonstration of the application of accounting in the given context. Good use of evidence to support the points made in the report.
4. Conclusions and recommendaitons (10%) – Concise summary of the main points, arguments, conclusions, and recommendations.
5. Structure, Presentation and Style (5%) -Meets the required style and format requirement; academic writing style, clear expression, structure and readability; correct spelling, grammar, punctuation, length.
6. Referencing (5%) Harvard referencing style is used within the report’s body and in the reference list. Referenced all materials, except the student’s own, used in the report. Make sure to demonstrates knowledge of the subject matter with relevant and adequate citations.
12.
Style and Format
1. The report must be word-processed using the 12-point font (Times New Roman), 1.5 line spacing, and 3 cm left and right-hand margins. Justified texts.
2. Use of appropriate headings, graphs, charts in the body of the report is encouraged.
3. Referencing must follow an acceptable academic format using the Harvard style.