Accounting Analysis
Students are required to address the following issues.
1. PƌŽǀide a bƌief ƐƵmmaƌLJ Žf ƚhe cŽmƉanLJ͛Ɛ activities as outlined in the annual report and any other
sources considered relevant (i.e. what does it do? Where does it operate?).
2. Identify the key accounting policies ƌeleǀanƚ ƚŽ ƚhe cŽmƉanLJ͛Ɛ ƐƵcceƐƐ Žƌ lack Žf iƚ
ʹ justify your
selection and state the accounting standards and rules (AASBs) which apply in respect of these
accounting policies
.
3
. Evaluate the accounting strategy employed by management in respect of each key accounting policy
and suggest/identify possible incentives behind the choice of strateg
y. By accounting strategy, we
mean the accounting policy choices, accounting estimates and accounting disclosure choices
(not
business strategy)
. Think abŽƵƚ managemenƚ͛Ɛ incenƚiǀeƐ ƚŽ diƐƚŽƌƚ ƚhe financial ƉeƌfŽƌmanceͬƉŽƐiƚiŽn
of the business.
4
. Evaluate the quality of disclosures made in the accounts
.
5
. Identify potential questionable accounting numbers
.
6
. Attempt where possible to undo questionable numbers (you will need to conduct research and critical
analysis explain what you think the correct numbers should approximately be)
.
Bonus points are awarded for extremely innovative or original analysis
of LJŽƵƌ cŽmƉanLJ͛Ɛ financial ƌeƉŽƌƚing
.
It is expected that your reports are of high quality. Refer to the marking rubric on the next page and
submission requirements on the previous page