Managerial Accounting Assignment Task Specification-
Group Report: "Measuring Performance and Management Control Systems" - A review of control systems reported in 2016 annual reports in Australian Public Companies.
Subject Learning Outcomes-
a) Analyse the roles of cost and management accounting in organisations through the analysis of accounting concepts and tools.
b) Evaluate and apply financial and non-financial performance measures and tools used in assessing and rewarding individual and corporate performance.
c) Describe how management control theory and concepts apply to organisational settings through the generation of accounting and organisational reports.
Task:
Each member of the group is to research the 2016 annual report (and corporate website) for one major publically listed Australian corporation. The companies selected must be approved by your Tutor during the tutorial in Week 6 (following the Mid-Trimester Exam).
Much of the information you require for management performance measures is likely to be found in the Remuneration Report within the selected Companies' Annual Report.
To give some consistency and a good basis for comparison, your group should focus on companies within the SAME INDUSTRY or having close links. (For example NOT an airline operator and a retailer.)
The REPORT component-
Each individual group member is to research and write an individual summary report that includes the following:
1. A review of the company's stated Mission and Vision (if these can be found) and research and discover the corporate goals of the organisation. (Review the Chairman and CEO's Statements in the Annual Report and the Corporate Website for this information.)
2. Research and discover the means by which the senior managers (CEO) and top executives will have their performance measured. (Read the Remuneration Report carefully to discover how the PERFORMANCE is measured. Note you may lose marks if you only concentrate on WHAT OR HOW MUCH they will be paid, You are trying to discover HOW the bonuses are being calculated!)
NOTE - DO NOT REVIEW THE REMUNERATION OF THE BOARD OF DIRECTORS OTHER THAN THE EXECUTIVE MEMBERS SUCH AS THE CEO
3. Discover the Key Measures of Performance (KPIs) of the company for 2016.
4. Research commentary on each company's performance (see newspaper and other reputable financial information sources - all MUST be referenced) and document (cut and paste as referenced materials (use JPEG images of screen grabs/scans etc.) a few (no more than THREE!) to enter into your report.
5. Reflect on what you see in the Annual Report (including the Chairman and CEO's report) and the level of remuneration the major executives have received and compare how the COMPANY views (and reflects its performance) and that of the commentary you have collected (from Q.4).
6. Write up, based on your research of these two sources (Company's own reports versus Outside reports) whether you believe this company IS or IS NOT achieving the performance required achieving their corporate vision and goals. Comment on whether you see that the measurements used are adequate and/or effective in motivating management and at what level. (E.g. Generally useful, seemingly meeting expectations or achieving great results according to these measures.)
7. The GROUP as a whole should then write up a comparison (analyse, compare AND contrast approaches) for each of the companies researched by the individual members.
8. Finally, draw conclusions on which company's performance measurement systems are producing the best results for the shareholders. (Note - there may be more than one conclusion, e.g. Company A is achieving great results in the short term however Company B appears to be setting a good foundation for growth in the long term.)
The GROUP report requirements and layout
The report is to be in a format acceptable for a professional presentation. The sections should include:
a. An Executive Summary (this is a ONE PAGE 'tear-out' report) It contains ALL the basic information AND the conclusions ON ONE PAGE
b. Table of Contents
c. Introduction
This should introduce THE REPORT - NOT the companies you are going to research. It should say what the purpose of the report is for, which companies (just a mention of their names is adequate) and the industry from which they are associated. Write a little about your methodology and what you are examining in the report.
d. Background Material (A VERY IMPORTANT SECTION)
This section is an opportunity to discuss academic theory in relation to company accounting systems and performance measurement systems generally. How do they influence management performance? How do companies use these measures to maintain control? How do management accountants assist in this regard? What is the role of Management Accounting in the control function of an organisation?
Each group report should include at least FIVE or SIX PEER-REVIEWED ACADEMIC ARTICLES related to Remuneration Reports and Schemes. (i.e. investigations or studies conducted on compliance and reviews of methods and measures used could be reviewed in this section.
e. Individual reports
Each student identifies the company studied and their findings (as per the previous section.)
f. Comparison of findings
This is where the group will compare and contrast what they discovered about each company and each company VERSUS the other companies.
g. Summary of findings
Write up your groups findings in relation to which company you believe has the best measurement system etc. (See previous section)
h. Conclusion
i. This final written section should reflect upon what you stated in the Introduction. (I.e. what you HAVE DONE and what you DID find and a statement on the topic demonstrating your new understanding on Measuring Management Performance.) Please do NOT repeat the summary of findings, the conclusion is about closing the report, not introducing new research material.
j. Appendices - These are optional and can include any additional findings and materials you believe are relevant but perhaps do not have to be INSIDE the report.
k. Referencing - A COMPLETE bibliography is required which is Harvard Anglia compliant. (Please see KOI resources if you need assistance with referencing.)
Attachment:- Assignment.rar