Reference no: EM132311087

Assessment - Accounting and Finance for Executives

In this report, there are two parts. In both the parts of the report, the different aspects of Fonterra's financial performance and financial position in the financial year 2018 will be evaluated with the help of the annual report 2018 of the business. In the first part, the longer and explanatory question of this report will be answered, and in the second part, the short question

Section A -

Question 1 - 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 condition."

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 -

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 improved 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 its largest 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?

Note - Just paraphrase this assignment and change references to 5 in-text and reference list.