Reference no: EM133665673
Accounting and Financial Management
Business Report on Company Annual Report Analysis
Introduction - This assessment task requires students to apply theoretical knowledge of accounting and financial management, corporate social responsibility (CSR), sustainability, and corporate governance by analysing a company's annual report and other media. First, students will need to assess a company's financial performance and financial position by employing a diverse range of financial ratios. Second., students are required to perform a comprehensive evaluation of the company's CSR/Sustainability report. Some company's may incorporate this information in the Annual Report or on the company website. This will require an examination of disclosures on issues related to social and environmental concerns, assess specific initiatives, and comment on their presentation. Since UOW is signatory to PRME, students are also required to assess their company's commitment to the United Nations' Sustainable Development Goals (SDGs)
Third, perform a critical appraisal of the company's adherence to corporate governance principles and suggest necessary improvements.
This assessment presents an opportunity to integrate financial and non-financial information, resulting in a holistic understanding of a company's performance and impact on a diverse range of stakeholders. Moreover, it offers valuable insights into the challenges and opportunities businesses encounter while navigating the complexities of financial performance, social responsibility, sustainability, and corporate governance in today's intricate organisational landscape.
Upon completion of this assignment, you will have developed a comprehensive understanding of a company's operations, its social and environmental footprint, thereby enhancing your overall understanding of some of the challenges inherent in contemporary business management and the role played by accountants.
You will be allocated an ASX-listed company in Week 4 which you will access from the subject Moodle site under Assessment 2.
The report should be 3,000 words maximum. This excludes the title page, executive summary, table of contents, charts, diagrams, tables, list of references and appendices. Students MUST provide the word count at the end of the report just below the list of references.
Structure of the Report
Executive Summary (Summary of the report at the beginning) 250 words
Body of the report
Introduction
In this section, provide an overview of the company you are analysing, including its industry sector, key players, competition, present performance, and future opportunities and threats to the sector. Also, state the purpose of the analysis and how the report is organised. 250 words
maximum
Discussion and the analysis of the report's findings
In this section, answer the questions stated in the report detail section below with appropriate headings 2,500 words maximum
Conclusions and recommendations
In the conclusion, provide recommendations based on your analysis and concisely summarise the key findings from the financial and non-financial analysis. Discuss the implications of these findings and their potential impact on the company's future performance and sustainability. 250 words maximum
Total word count 3,000 words
maximum
End matter
G: List of references
H: Appendices (detailed calculations of the ratios if needed)
Report Details
As the financial manager of the business, your responsibility is to evaluate the financial performance and position of the company for the year 2023. Your assessment will be based on your analysis of various ratios, comparing them with the previous period/ other competitors/ and industry averages. By calculating these ratios and providing commentary on the following aspects of the company, you will offer insights into its financial well-being and areas that may require improvement:
Profitability (Operating profit margin and Return on Assets)
Efficiency (Total assets turnover ratio and Fixed assets turnover ratio)
Liquidity (Current ratio and Acid Test ratio)
Gearing (Gearing ratio and interest cover ratio)
Investment (Dividend payout ratio and Earnings per share ratio)
Overall financial performance and financial status
Conduct a review of the Corporate Social Responsibility (CSR) report, Sustainability Report, or Social Audit Report of the company you are investigating. While you're not expected to scrutinise the entire document, consider the following questions in your analysis:
Identify and provide a brief description of five distinct social and environmental issues or initiatives that the company addresses in its report.
Evaluate the presentation and content of the CSR report. What unique or engaging elements does the company incorporate into its report? This could include visual aids, case studies, or other innovative presentation methods.
Identify the Sustainable Development Goals (SDGs) that the company has committed to implementing. Evaluate and discuss their effectiveness and impact on the company's overall sustainability strategy.
Carefully review the corporate governance information in the company annual report and assess the company's compliance with the guidelines provided by the Australian Securities Exchange Corporate Governance Council (ASXCGC). Use the following link to access the ASXCGC principles and recommendations: [cgc-principles-and-recommendations-fourth-edn.pdf (asx.com.au)]
Identify and provide insights into the significant capital budgeting choices recently made by the company, which may have necessitated the application of capital appraisal methods. Please cite where in the annual report this information can be found.
Conduct an analysis of the operating cash cycle of the company, and evaluate the company's performance concerning its working capital management. Provide insightful commentary on areas where further improvements can be made.
Other Insights - comment on anything that draws your attention or is peculiar to the industry or company context.