Unit Title Introductory Accounting
Trimester Trimester 1, 2019
Assessment Type Business Report
Assessment Title Assignment [Group]
Unit Learning Outcomes
covered in this assessment The purpose of this assignment is to assess the following Learning Outcomes:
c. Analyse accounting reports
d. Use accounting information in a variety of business decision making contexts
e. Develop an ethical perspective on the use of accounting information
Total Marks 100
Word limit 1500-2000
Release Date Week 4
Due Date Week 11
Submission Guidelines • Group size: This assignment should be completed in groups of four.
• All work must be submitted on Moodle by the due date along with a completed Assignment Cover Page.
• The assignment must be in MS Word format, 1.5 spacing, 11-pt Calibri (Body) font and 2 cm margins on all four sides of your page with appropriate section headings.
• Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using APA or IEEE referencing style for School of Business and School of Information Technology and Engineering respectively.
Extension • In the case of serious illness, loss or bereavement, hardship or trauma students may be granted special consideration. Your completed Application for Special Consideration and supporting documentation must be submitted directly to the School’s Administration Officer via your MIT AMS login [https://online.mit.edu.au/ams/default.aspx?ReturnUrl=%2fams%2f]. You must submit this application no later than three working days after the due date of the specific piece of assessment or the examination for which you are seeking Special Consideration. Further information is available at:
• Academic Misconduct is a serious offence. Depending on the seriousness of the case, penalties can vary from a written warning or zero marks to exclusion from the course or rescinding the degree. Students should make themselves familiar with the full policy and procedure available at:http://www.mit.edu.au/about-mit/institute-publications/policies-procedures-andguidelines/Plagiarism-Academic-Misconduct-Policy-Procedure. For further information, please refer to the Academic Integrity Section in your Unit Description.
Last updated: April, 2019
You are required to select one public listed company from Table 1. Write a business report about the selected company’s operating, financing and investing activities based on the relevant ratios calculations from their recent annual financial reports. Please note that recent annual reports for the companies in Table 1 can be accessed from the Moodle folder named Annual reports placed in BB104 Moodle shell T1_2019. In your report identify what other information (non-financial) in addition to the financial information would assist an investor to make investment decision in one of the selected companies.
Table 1: List of selected companies from Australia Securities Exchange (ASX) list, by the industry sector.
ASX Code Company name Sector
1 AMC Amcor Limited Materials
2 BLD Boral Limited Materials
3 EHE Estia Health Limited Health Care
4 ARB ARB Corporation Limited Consumer Discretionary
5 BRG Breville Group Limited Consumer Discretionary
6 AST Ausnet Services Limited Utilities
7 SKI Spark Infrastructure Group Forus Utilities
8 BGA Bega Cheese Limited Consumer Staples
9 BKL Blackmores Limited Consumer Staples
10 SUN Suncorp Group Limited Financials
11 BXB Brambles Limited Industrials
12 WOW Woolworths Limited Consumer Staples
13 WES Wesfarmers Consumer Staples
14 ANZ Australia and New Zealand Banking Group Insurance
Australia Ltd Financials
15 IAG Insurance Australia Ltd Financials
16 COH Cochlear Limited Health Care
17 CSL CSL Limited Health Care
18 CBA Commonwealth Bank Financials
19 A2M The a2 Milk Company Consumer Staples
20 RIO RIO Tinto Limited Materials
21 BHP BHP Billiton Limited Materials
1. Select one company from the above table. Inform your lecturer in Week 5 to get an approval for the selected company. (Note: Groups are not permitted to select the same company).
2. Use the financial statements to conduct an analysis of company’s operating, financing and investing performance. This will require you to calculate ratios and compare the performance over two consecutive periods, the ratios listed below are the minimum to be discussed in your report:
• Current ratio
• Acid-test (quick) ratio
• Receivables turnover
• Return on Equity (ROE)
• Return on Assets (ROA)
• Debt to Equity (D/E)
• Earnings before interest and taxes (EBIT)
• Price Earnings ratio (PER)
• Earnings per share (EPS)
3. Based on your ratios in part ‘4’ write a report to your manager summarising the operating, financing and investing performance of the selected company.
4. Referring to relevant sections of the Annual Reports of the company selected, discuss the non-financial information such as corporate governance practices and ethical considerations adopted by the company. Comment on the importance of non-financial information to the investors for making investing decision in a company (Please refer to the Corporate Governance and Business Ethics sections of the Chapter 2 (Accounting in Society), Birt, J., Chalmers, K., Maloney, S., Brooks, A., & Oliver, J., (2016). Accounting: Business Reporting for Decision Making, 6th edition. Australia: Wiley).
5. Suggested report format: ? Cover page
? Executive Summary
? Table of Contents
? Description of company background
? Financial Statement analysis
? Discussion of the importance of non-financial information to investors for making investment decisions.
? Conclusion and recommendation.
? References in APA style (can be found in MIT library referencing)
Assessment Criteria Assignment Topics Marks Allocated Comments
Criterion 1 Executive Summary 5
Criterion 2 Introduction 5
Criterion 3 Description of company’s core business and explanation of growing or declining industry. 10
Criterion 4 Discuss the operating performance 15
Criterion 5 Discuss the financing performance 15
Criterion 6 Discuss the investing performance 10
Criterion 7 Discuss the importance of non-financial information in making investment decisions 10
Criterion 8 Contribution in group work 10
Criterion 9 Written communication: structure, language 10
Criterion 10 Professional report layout accurate referencing and evidence of research 10
Total Marks 100