Reference no: EM131830092
PURPOSE
The main purpose of this assignment is to provide students with the opportunity to apply the knowledge and skills acquired during the semester to a practical task involving the use of ‘real-world' accounting information. In particular this will enable you to gain insights into and information about the business of Billabong Limited, a merchandiser of surfwear and other outdoor action clothing, using the published financial statements of the company as your primary data source. This is intended to consolidate students' accounting knowledge and skills.
ASSESSMENT DETAILS
Students are to organise themselves into groups of three or four to complete the assignment and do not have automatic entitlement to adopt some other arrangement (such as completing the assignment individually or in a larger group). Students who have difficulty finding a partner or who encounter other difficulties (for example, their partner withdraws from the course) should consult the Course Coordinator. There is no requirement that your partner be from the same tutorial group as yourself.
The basic requirement is to make a general analysis of the profitability, efficiency, liquidity, gearing (leverage), and investment performance of Billabong Limited using the information available in the company's 2015 annual report available available at Billaboing Annual Report 2016 and also available via Moodle.
Students are to use the ‘Consolidated' data in conducting their analysis. Note that the 2016 annual report contains comparative data for the year 2015. The assignment will contain two main elements:
SCHEDULE(S) OF RELEVANT RATIOS AND OTHER USEFUL CALCULATIONS
The schedule(s) of relevant ratios and other useful calculations should be incorporated in one or more appendices. Ratios and other calculations should be presented so as to facilitate comparison between 2016 and 2015 data. Students are advised to show the calculations used in determining particular ratios and other figures.
The written report should:
- Explain briefly what is revealed by the ratios and other calculations in the context of the company's profitability, efficiency, liquidity, gearing (leverage) and investment performance. In particular, any important changes from 2015 to 2016 should be identified, discussed and, where possible, explained.
- Provide an overall assessment of the company from the perspective of existing and potential equity investors (shareholders).
Students are required to use the ‘APA system' for the acknowledgment of sources.
SUGGESTED REPORT FORMAT AND APPROACH
SECTIONS IN REPORT:
Complete assignment in appropriate report format. Suggested report structure and headings:
I. TITLE PAGE
Your title or cover page needs to convey the main information about your assignment. It must look professional and include:
- The Course Code and Name:
- The title of the assessment task:
- Name of the Course-Coordinator and of your tutor
- Trimester, year and date of submission
II. TABLE OF CONTENTS
The Table of Contents (TOC) provides the outline of your report to the marker/reader. It is the first indication that you have addressed key issues and carefully planned you work. Your TOC should look well laid out as if it is the TOC in a book. Use numbering for major and minor headings where appropriate and include page numbers. You can use an extra page to detail illustrations or tables if it is appropriate.
III. EXECUTIVE SUMMARY
The Executive Summary should give an overview of your report to a busy executive who does not have time to read it in full. It should:
- convey the purpose of the report,
- give a summary of key themes, ideas or findings (sub-headings may be used),
- provide abridged recommendations.
The Executive Summary should not exceed 150 words. The words in the Executive Summary are not included as part of the final word count.
IV. BACKGROUND: COMPANY OVERVIEW
V. ANALYSIS
The main body of the report should include a discussion of what is revealed by the ratios and other calculations in the context of the company's profitability, efficiency, liquidity, gearing (leverage) and investment performance. In particular, any important changes from 2015 to 2016 should be identified, discussed and, where possible, explained. The main areas of analysis are:
- Profitability
- Efficiency
- Liquidity
- Gearing (Leverage)
- Investment Ratios
VI. CONCLUSIONS AND FINDINGS
The Conclusion is your evaluation or summary of the major points and key findings as discussed in the Body of the report. The Conclusion should always be concise and must not contain any new information. It should not require a substantial number of words to draw information together and summarise what you have found.
VII. RECOMMENDATIONS
Your recommendations are the culmination of all your work and should deliver a well-rounded and thoughtful ending to your research. The material in the body of your report provides the basis for your considerations. The conclusion provides a summary of your deliberation over your findings. The recommendations provide the reader with your considered opinions of what would be the best decision(s) to make, or course(s) of action to follow, based on your research and critical analysis.
For this assignment your recommendations should be directed towards both the internal management/directors of the company and also existing and potential external equity investors.
VIII. APPENDIXES
The appendix must contain a one page summary in table format of the results of your ratio calculations. This summary of your ratio results should be followed by the actual ratio calculations and workings. Footnotes should also be used in your appendix to justify any values you have used in your calculations where there is some uncertainty if you have selected the correct figure (value) from the annual report to be used in the formulas.
IX. REFERENCES
This must contain full details all sources referred to or cited in the report, using the Federation University author-date (APA) style.
ANALYSIS APPROACH
In particular, any important changes from 2015 to 2016 should be identified, discussed and, where possible, explained. This may include amongst other aspects discussion and analysis of:
- Key results/trends from the ratio calculations
- Implications of your findings on the various
- Possible reasons and explanations behind the company's fianacial performance and results
- Strategic implications for the company
- Strategies to improve the companies financial performance and results and also improve investor (shareholder/member) confidence