ACC00145 S3 Report
Due date: 5 pm Friday 24 January 2020
Weighting: 30% (The total marks of this assessment task are 30 marks)
Objective: This task requires you to prepare a report to evaluate the information provided in the annual report of your chosen company listed on the Australian Stock Exchange (ASX). Your comments or evaluation should be complying with the requirements of relevant Australian accounting standards (AASBs). The report should address the points outlined below:
1) PPE. You should refer to the requirements of AASB 116 Property, Plant and Equipment and, AASB 136 (FP) Impairment of Assets [for for-profit entities] as the guideline of your report.
• Identify the PPE of the company by the end of financial year 2019 (1 mark)
• Determine the measurement of PPE in the chosen company (2 marks)
• Comment and discuss the depreciation method of your chosen company (2 marks)
• Whether there is impairment loss and how it is determined (2 marks)
• Comment on whether or not the disclosures of PPE in the annual report are sufficient for decision making (2 marks)
• Discuss how the choice of accounting policies impact on financial performance (2 marks)
2) Income Taxes. You should refer to the requirements of AASB 112 (FP) Income Taxes [for for-profit entities] as the guideline of your report.
• Determine the recognition of current tax liabilities (assets) and tax expense (income) reported in the annual report of the chosen company (2 marks)
• Determine whether there are deferred tax assets (DTAs) and deferred tax liabilities (DTLs) and explain the factors that led to DTAs and DTLs in the chosen company (2 marks)
• Discuss the measurement of current tax liabilities and assets, DTAs and DTLs in the annual report, comment whether it aligns with the requirement of AASB 112 (2 marks)
• Are DTAs and DTLs offset against each other in the annual report? (1 mark)
• Are there any DTAs and DTLs that are not recognised in the profit and loss in the financial year? (1 mark)
3) Equity/Shareholders’ fund. Comment on the recognition and disclosure of share capital in the chosen company according to the requirement of AASB 101 (FP) Presentation of Financial Statements [for for-profit entities]
• List the components of Shareholder’s Fund/Equity presented in the annual report of your chosen company, providing details of changes during the financial year (1 mark)
• Determine whether there is any reclassification between financial liability and equity during the observed financial year. Explain why it is import to classify between debt and equity appropriately (1 marks)
• Comment on any items that are recorded against equity rather than being recorded as part of profit and loss (2 mark)
• Does the company provide sufficient information for analysis of the company’s performance? (2 mark)
4) A total of 5 marks awarded for presentation, effective communication and correct referencing.
The report that you prepared should include an executive summary, body of contents covering points listed above, and a reference list. The word limit of this report is 1500 words (excluding executive summary, references, and appendix). The reference of the report should use Harvard Style. The reference list should provide all the material used in supporting the report. Sections extracted from the annual report to support your report should be included in the appendix. Also, provide specific page numbers of the annual report and paragraph numbers of AASBs as an in-text reference in your assignment. If you choose to ignore this instruction, then you will lose marks for avoiding it. Remember to attach a link/copy of the financial report/statement with your assignment.
Each student should choose a company listed on the Australian Stock Exchange (ASX) and find an annual report for the 2018/2019 financial year. Remember to use the complete annual report and not a concise financial report or a half-year financial report.
Your choice of a company is not to duplicate one already chosen by another student. You will need to check first whether another student has not already reserved the company of your choice as it is a first-come, first-served basis. You may reserve a company by adding a post on ‘Discussion Board’ under ‘Report Assessment – Reserve your company here.’ Write the name of the chosen company in the subject line of your post.
Unless otherwise indicated, all assignments are to be submitted online via the link of Turnitin assignment submission provided on the Blackboard. The link to submit an assignment will be open 4-5 weeks before the due date. After the due date, a separate link will be available for late submission with an approved extension. You must use the electronic Assignment Cover Sheet provided, fill in details and then make this sheet the first page of your assignment. Do not send it as a separate document. The report file should be saved as your surname, student number, and company name. For example: ‘Paker1235456xyz’.
Your report must be submitted as Word documents or pdf files. If you wish to submit in any other file format, please discuss this with your lecturer before the assignment submission date.