ACCT19061 Corporate Accounting
Assignment 1 – Term 1, 2016
Due date: 11.45 pm 29 April 2016
Weighting: 45%
Please upload your company's annual reports for the last 2 years along with your assignment document onto Moodle.
Part A: 30 Marks
Questions Marks
1. Outline your company's main business activities and industry segments as an introduction to your company. 5
2. Does your company report Share Capital/Contributed Equity, and what are the components of it? Explain these components/different categories, how they have been created. Discuss the changes that have occurred to Share Capital/Contributed Equity in the past two years. What events have caused such changes? 10
3. Does your company reports Reserves, and what are reserves generally? What reserve accounts does your company disclose? How are they created? What changes does each of them have in the past two years? What might have caused those changes? If your company does not report any reserve accounts, you should outline and explain 4 different types created by specific accounting standards. 10
4. Does your company report Retained Earnings/Retained Profits/Accumulated Loss, and what does it mean? What changes does it have in the past two years? What events have caused it to change? 5
Total 30
Part B: 15 Marks
Questions Marks
1. What is your firm’s tax expense in its last two years’ financial statements? Is this figure each year the same as the company tax rate times your firm’s accounting income?
Explain why this is, or if not, the case for your firm. 5
2. Is your company part of a consolidated group? Does it have subsidiaries or associates? Explain your view. Why or when does a company need to prepare consolidated financial statements? 5
3. Does your company record any goodwill? Where would you find it in the financial statements? What events have occurred, or could have occurred, for this account to appear in the financial statements? 5
Total 15
NOTE ON FORMATTING:
Format should be a simple word document, identifying each question and related response.
The document is not an essay or report, but should be correctly referenced.
A cover sheet with student name and number should be provided on the first page, as well as in headers/footers throughout the document.
Other Useful Hints:
I would prefer that you do not use direct quotes. If you do use them, please make sure that you reference and explain them so that your understanding to the topic questions is clearly shown. When marking, I will seek to find how much you understand for each of those topic questions!
In the file “Find Your Company” you will find the listed company you have been given for this course. This file will be made available by 5.00pm Friday of Week 2. Complete this assignment for the company you have been given. Please be careful to use the listed company you have been given. Your assignment will NOT be marked if you use a different company to the one you have been given; and you will be asked to resubmit your assignment using the right company.
Go to the website of your company, by clicking on the URL next to your company in the list of companies in the file “Find Your Company”.
Tip: If for some reason the URL for your company is no longer working, please Google your company to find its website.
Then go to the Investor Relations section of the website. This section may be called, “Investors”, “Shareholder Information” or similar name.
Save a soft copy of the Annual Report for your firm for each of the last two years. For example, if your firm’s latest Annual Report is for the year ended 30 June 2015, save your firm’s Annual Reports for 30 June 2015 and 30 June 2014.
Only save your firm’s Annual Reports. Do NOT save its interim or half-yearly reports; also do not save its concise annual reports. You can ignore these. Only save its full Annual Reports with its full financial reports. I also suggest you have a quick browse through your firm’s website. This will give you some initial insights into your firm’s operations and activities.
If you have any difficulty finding your firm’s Annual Reports – or would like to check you have the right ones - please ask your lecturer or tutor for assistance
Within your firm’s Annual Reports, find its financial statements (Statement of Comprehensive income, Statement of Changes in Equity, Statement of Financial Position, Statement of Cash Flows.)
From your firm’s Statement of Financial Position, list each item of equity and write your understanding of each item. Make sure you read carefully any footnotes for each item of equity and also look at your firm’s Statement of Changes in Equity. Discuss in detail any changes in each item of equity for your firm over the past two years.
Tip: Take reserves as an example. Your firm’s reserves may include asset revaluation reserve, general reserve and foreign currency translation reserve. You need to work on each individual reserve account as well.
Please feel free to discuss on available forums with other students in the course any issues or questions you have in understanding each item in your firm’s balance sheet.
Assessment Criteria
Part A: Questions Marks
Avail. Your Marks
1. Outline your company's main business activities and industry segments as an introduction to your company. 5
2. Does your company report Share Capital/Contributed Equity, and what are the components of it? Explain these components/different categories, how they have been created. Discuss the changes that have occurred to Share Capital/Contributed
Equity in the past two years. What events have caused such changes? [2x5] 10
3. Does your company reports Reserves, and what are reserves generally? What reserve accounts does your company disclose? How are they created? What changes does each of them have in the past two years? What might have caused those changes? If your company does not report any reserve accounts, you should outline and explain 4 different types created by specific accounting standards. [2x5] 10
4. Does your company report Retained Earnings/Retained Profits/Accumulated Loss, and what does it mean? What changes does it have in the past two years? What events have caused it to change? [1+2+2] 5
Total 30
Part B: Questions
1. What is your firm’s tax expense in its last two years’ financial statements? Is this figure each year the same as the company tax rate times your firm’s accounting income? Explain why this is, or if not, the case for your firm. [1+2+2] 5
2. Is your company part of a consolidated group? Does it have subsidiaries or associates? Explain your view. Why or when does a company need to prepare consolidated financial statements? [1+2+2] 5
3. Does your company record any goodwill? Where would you find it in the financial statements? What events have occurred, or could have occurred, for this account to appear in the financial statements? [1+2+2] 5
Total 15
Assignment Total 45%