Reference no: EM132310094 , Length: word count:1300

Accounting and Finance for Executives

Learning Outcomes : Applicable course objectives:

LO-1 Demonstrate applied knowledge of the accounting regulatory environment and the accounting and finance processes, systems, concepts and techniques used globally in business practice

LO-2 Apply financial statement analysis, management accounting concepts and finance frameworks to identify and solve complex organisational problems creatively and practically to increase the effectiveness of management decision making, evaluate and change organisational systems, and develop organisational solutions to "real world" problems.

LO -3 Appreciate ethical frameworks and codes of practice and their application to accounting and finance outcomes to help comprehend and address complex ethical dilemmas.

Assignment Task:

The case study consists of two sections

All sections have to refer FY 2018 financial reports of Fonterra Co-operative Group Ltd

(Note there are other sites that will also provide you with information for this report if you type in Fonterra 2018 financial reports)

Your discussion, argument and application should make reference to relevant key conceptual framework, corporate responsibility and governance, ethics, financial statement analysis, management accounting concept and accounting equations use.

Section A

Question 1
The Fonterra Board and management team maintain a high ethical standard and operate ethically, legally and regionally according to Fonterra's core ethical values.

Identify those core ethical values and critically examine how these can enhance Fonterra's reputation and commitment to become the world's most trusted source of dairy nutrition.

Question 2

Identify Fonterra's group policy and approach in managing liquidity risk under both "normal" and "stressed conditions".
Explain the meaning of "stressed condition" and identify alternative policy available to mitigate such condition.

Question 3
Fonterra's FY 2018 results failed to meet its financial and operational target.Critically examine the remedies Fonterra is taking to improve its FY19 performance.

Question 4
The FY18 group's normalised consolidation loss before taxation was 154 million as a result of non-operational adjustments. What will be the group's actual result without adjusting those non-operational adjustments?

Question 5
The FY18 group consolidated loss before taxation was 154 million, while the consolidated cash flow showed a closing cash surplus of 285 million. Critically analyse the difference between the two results.

Section B

Answer all the following questions.
a) Describe the four components of financial statements in FY18 annual reports. What are they and describe what each is designed to report?

b) State the accounting equation in $ terms for Fonterra at the beginning and end of the financial year.

c) Identify the two largest revenue sources of Fonterra for FY2018 and state the sources' respective amount in monetary terms

d) Has cash flow at the end of 2018 improve or declined from 2017 and why?

e) Identify the two largest expense items of Fonterra for FY2018 and state the items' respective amount in monetary terms.

f) What is the largest non-current asset the company owns and state its opening and closing net book value?

g) Does Fonterra provide information about its borrowings? If yes, give two examples of itslargest borrowings and also specify their respective amount in monetary terms.

h) Which accounting firm audited the financial statement and what opinion was issued?

i) How are the operations of Fonterra financed?

j) Would you invest in Fonterra and why?

Attachment:- Assignment.rar