Corporate Accounting Assignment -
Select three of the following Australian Companies listed on the ASX, each one from a different industry: telecommunications services, metals and mining, and consumer staples.
Question 1: Research and Report
PART A: Research and Report
Select three (3) companies listed (above) on the ASX, each one from a different industry, metals and mining, telecommunication services, and consumer staples.
1. Compare their Statements of Cash Flows and provide a brief report on your findings relating to the major categories of operating activities, investing activities and financing activities.
2. Explain the differences between the direct and indirect methods of presenting cash flows from operation activities and provide a brief report on which methods are employed on your selected 3 companies.
PART B: Report
Read the following article (attached to the Assignment): Carslaw, C & Mills, J 1991, 'Developing Ratios for Effective Cash Flow Statement Analysis', Journal of Accountancy, vol. 172, no. 5, November, pp. 63-70.
Carslaw and Mills group cash flow ratios into four categories as follows:
(1) cash return
(2) quality of earnings
(3) solvency
(4) capital expenditure commitments.
1. Employing 'Carslaw and Mills' ratios analysis approach, calculate the ratios for each of your 3 companies and write a report evaluating their performance over two years and comparing them with each other.
2. Choose one company out of the three which uses a different ratio analysis approach from the Carslaw and Mills' approach in its Annual Report. Compare the Annual Report ratios with the ones you have calculated using Carslaw and Mills' approach.
Does the Company's method of ratio analysis give a different impression of its performance? Discuss the advantages and disadvantages of the two different approaches for the company's management group and for their shareholders.
QUESTION 2 BOARD Composition
You have to select one company from the 3 selected companies in Question 1 and work on this company in Question 2 Part A and B. You have to choose from the same companies as you selected in Question 1.
PART A. BOARD COMPOSITION:
Based on the information provided in the company's Annual Report for Financial Year 2017, you have to answer the following sub-questions.
1) How many independent directors are there?
2) What is the number of directors of each gender?
3) Qualifications of three directors. Also provide your opinion of the advantages of these qualifications.
4) Provide a summary of the experience of these three directors and your opinion of the advantages of this experience.
5) Are these 3 directors on other boards and if so, what kind?
PART B. REPORT (400 - 600 words)
As an in-house accountant of the selected company, you were asked to prepare a report to be used in its annual general meeting.
The report needs to discuss the following matters using the information found in the company's annual report for 2017 and the past years if necessary.
1) The current profitability level of the company, and how stable its profitability level has been for the past several years.
2) How its dividend payments have been, and how has the company's equity been growing in the recent years?
3) Is the company recognising any opportunity for future growth (e.g., new business segments and/or new services)?
4) Is the company recognising any challenge in the current business activities (e.g., the rise of competitors)?
5) What has the company being doing to contribute to the social and environmental sustainability?
As mentioned above, all the arguments have to be made based on the information provided in the annual report.
You may also find it useful to read some financial articles from newspapers or journals or from case studies in your text book on issues relevant to your company. This may enhance your assignment.
You have to appropriately cite/reference all the supporting articles.
In this task, you may find the information provided in the textbook useful.
Attachment:- Assignment File.rar