ACCG350 -GROUP MAJOR ASSIGNMENT INSTRUCTIONS
This assignment is to be completed in groups of three or four students. The students take the viewpoint of sell-side analysts. The markers take the viewpoint of shareholders educated in accounting and finance but not necessarily intimately familiar with the company subject to analysis. There are two components to this assessment task: the presentation and the report.
PRESENTATION-
The presentations will be on the strategic and business analysis, accounting analysis and financial analysis. There are two principal purposes of the presentation. The first purpose is to enable students to obtain feedback, on their work to date, from the tutor and their fellow students. The second purpose is to discipline the students to work of the major assignment.
Each presentation should last for 12 - 15 minutes. All members of the group are required to contribute. After each presentation, there will be a short group discussion, to provide the presenters with feedback. It would be a practical impossibility to adequately cover all aspects of the aforementioned topics during the time allocated. Hence, each group should select up to four issues for which they would most like feedback. Students must select at least one issue from all three aforementioned stages of the analysis. Their presentation should focus on these issues. Students are welcome to use visual aids.
THE REPORT
Each group is required to submit a report of their sell-side analysis. The report for the major assignment is worth 15% of the total assessment. The report is to be approximately 20 - 25 pages in length, excluding references and appendices. The reports are to be in 1.5 spacing. The reports will be marked out of 100. The following sections should be included.
1. Introduction, including a clear statement of objectives, an outline of the structure of the report and a summary of the principal findings.
2. Business Strategy Analysis, including the following:
- A clear statement of the company's activities
- Analysis of macroeconomic settings, and an assessment of their impacts for the company being value. Students may include analyses of other macro-level factors, such as demographic and regulatory factors.
- Analysis of the industry in which the company operates
- Evaluation of the company's competitive and corporate strategy
- Assessment of the implications of these factors for the company's future profitability.
3. Accounting Analysis, including the following:
- Identification of three critical success factors for the company
- Identification of three key accounting policies for the company
- Assessment of the windows for managerial discretionary afforded by Australian accounting standards with respect to the critical accounting policies
- Identification of potential incentives for opportunistic accounting policy choice
- Evaluation of the accounting strategies followed regarding the key accounting policies, including comparison with an industry competitor
- Evaluation of the quality of the company's disclosure quality
- Identification of any "red flags", if applicable.
4. Financial Analysis, including the following:
- Presentation of key ratios and indices relating to: profitability, asset management, liquidity and solvency. Students should present at least three ratios relating to each of these dimensions, for both the company being valued and the competitor for the past three years
- Discussion of the indices and ratios, culminating in evaluation of the company's performance and overall financial position
5. Prospective Analysis
Forecasts-
- Forecasts of re-formatted income statements and balance sheets for the company for the next five (5) financial years. Free cash flow should also be forecast if students are going to conduct free cash flow valuation. Students have the option of either forecasting Statements of free cash flow or arriving at forecast free cash flow, using data from the forecast income statement and balance sheet.
- Discussion of forecast assumptions and estimation of forecast parameters
- Discussion of the sensitivity analysis. The latter may be used to identify the assumptions upon which the forecasts most critically depend.
Valuations
- Valuation of the company using two different methods. One of the valuations must entail discounting of earnings, abnormal earnings, dividends or free cash flows.
- Argumentation as to why the valuation methodologies chosen are appropriate for the company being valued
- Explanation of how the assumptions underlying the valuation and estimation of valuation parameters
- Estimation of value per share, including discussion of the input factors upon which the value most critically depends (identified via sensitivity analysis).
6. Recommendation for the clients, synthesising the report.
- A brief summary of the principal conclusions
- A comparison of the estimated value per share with the market value, and a portfolio recommendation.
Valuations are required to be performed as at the balance date of the financial statements released during the 2015 calendar year (i.e., 1 January, 2015 - 31 December, 2015). Both in-text references and bibliography should be provided. Commercial data services may be used to source annual report and other information. Any commercial data sources used should be acknowledged and referenced in the written report. Note that plagiarism from commercial analysts' reports can be easily identified and will result in zero marks for the assignment.
Extensions will only be considered after consultation with the unit convener.
Penalties
- A report that exceeds 25 pages will be penalised.
- A deduction of 20% of the total assignment mark will be imposed each day for late submission.
Table 1 lists the companies which students may choose to analyse for their major assignments. Students should inform their tutor, immediately after forming groups. They should indicate their preferred company. To the extent possible, tutors will ensure that each company in Table 1 is taken by at least one group in each tutorial.
Table 1 - Companies Available for Major Assignment
|
Company Name
|
ASX Code
|
ASX Industry Classification
|
Principal Activities
|
|
Pulse Health Ltd
|
PHG
|
Health care
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Operation and ownership of private hospitals
|
|
Regional Expression Holdings Ltd
|
REX
|
Industrial
|
Air transportation of passengers and freight
|
|
Patties' Foods Ltd
|
PFL
|
Consumer staples
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Manufacture and marketing of frozen foods
|
|
Prophecy International Holdings Ltd
|
PRO
|
Information technology
|
Distribution of software applications and services
|
|
Pacific Energy Ltd
|
PEA
|
Utilities
|
Power generation
|
The information in Table 1 was sourced from the websites of the Australian Securities Exchange and Data Analysis Premium. The URLs for these websites are https://www.asx.com.au and https://datanalysis.morningstar.com.au.
I have one assignment for Financial Valuation, the company we need to do this Patties Food Limited (PFL), and I need to do the only Valuation part for this report.
I do have model example for the valuation part, and I want it to be looks like that. Please have a look at my model exemples for the valuation parts and send me the quote for the valuation.
This is forecasting valuation parts.
I will also upload the related lecture notes.
You can find the PFL's annual reports from the ASX websites.
From the Insturctions file, the things need to do is, page3, valuations sections.
Please work on this,
I will also upload the related Forecast income statement.
For the Valuation parts, I need this to be done
Attachment:- Assignment.rar