THE UNIVERSITY OF NEWCASTLE
NEWCASTLE BUSINESS SCHOOL
PACC6000: Financial Accounting 1
Semester 1, 2018: Assignment 2
Due Date: 21 May 2018, Monday, 23.59 AEDT
Assessment Weight: 20%
Task: This assessment is an individual task in which the student is required to write a report on a topic included in this paper.
Total Marks: 20 marks (20% of total assessment).
Reading Materials: Week1-Week10
Submission: Hard copy submission in the class and Online submission through Blackboard.
Submission Guidelines:
? Assignments must be submitted by the due date.
? Students should include the cover page designed by the University of Newcastle with the assignment.
? All assignments must be submitted online and hardcopy in the class. Submissions via email will not be accepted.
? Assignment must be typed, and submission file should be in word.
? Each page of the assignment should be numbered.
? Whenever necessary assignment must be properly referenced, and referencing should follow American Psychological Association (APA) 6th edition style.
Extensions of Submission Date:
? All requests for extensions must be submitted through adverse circumstances application before the assignment submission due date.
Late Submission:
? The mark for an assessment item submitted after the designated time on the due date, without an approved extension of time, will be reduced by 10% of the possible maximum mark for that assignment item for each day or part day that the assessment item is late.
? Note that this applies equally to week and weekend days.
Length: This report should not exceed 2,000 words (excluding Appendices).
PURPOSE
Financial Statement Analysis - To calculate and analyse financial ratios using actual reported data.
REQUIRED
Given the financial statements and the additional information, analyse and discuss the financial performance and position of Specialty Fashion Group Limited. You should refer to the notes to the financial statements and the Director’s Report for further details and clarifications of changes in the financial statements. (You may find the Full Year Results CEO & CFO Presentation useful for this assignment).
Your analysis should be supported by profitability, liquidity, gearing and other appropriate ratios from Chapter 18 of the prescribed textbook.
Calculate and analyse financial ratios (percentage and ratio analysis)
Use the 2017, 2016 and 2015 published annual reports to obtain the financial statement figures needed to calculate the ratios (where there are consolidated accounts, use the consolidated amounts). In addition, students are strongly advised to:
perform horizontal and vertical analyses of the Statements of Financial Position (Balance Sheets) and Statements of Profit or Loss (Income Statements) for the company
read all parts of the Annual Reports
Instructions
Your report should calculate* and analyse the following ratios, in clearly identified separate sections:
Profitability
Rate of return on net sales
Rate of return on total assets
Asset turnover
Rate of return on ordinary shareholders’ equity
Earnings per share (given in the Annual Report)
Liquidity
Working capital
Current ratio and Acid-test ratio
Inventory turnover and Days in inventory
Gross profit percentage
Accounts receivable turnover
Days’ sales in receivables
Gearing
Debt ratio
Debt to equity ratio
Times interest earned ratio
(* Tabulate and show the formula and detailed calculations in an Appendix.)
Your analysis should include:
Year-to-year (2017 and 2016; 2016 and 2015) comparisons (horizontal analysis). Use the Director’s Report and the Notes to the Accounts to further justify your answer.
The components of each ratio should be investigated to determine the significant or determining factors in any change to the ratio.
These significant factors should then be investigated to determine (to the extent possible) the cause and sustainability of their change (refer to example below).
Example of a current ratio analysis: Company X current ratio increased from 1.2 to 4.3. The company increased its ability to pay its debts in the short-term. The main reasons for the increase were a 22% increase in cash and a 14% decrease in trade payables. The increase in cash and the decrease in trade payables were both a result of reductions in purchases of inventory. This is unlikely to continue as the company was depleting a previous overstock.
Each ratio analysis will be marked on the correctness of the comparisons and the identification of the determining factors. The depth and correctness of analysis of the factors will be the primary criteria for grade differentials in this assignment. The determining factors need not be confined to the annual reports, but they must be relevant to your analysis.
Check the web link (www.specialtyfashiongroup.com.au) to the Annual Reports of Specialty Fashion Group Limited.
A marking rubric is included in this assessment for your information. The marking rubric details what is required in the report under each section. Note that this assessment will be discussed further in class.
Checklist before submission
? Cover sheet completed
? Word limit
? Turnitin copy submitted ? Carefully proofread/edited
? Format and presentation:
? Executive Summary ? Introduction
? Analysis
Horizontal analysis
Vertical analysis
Financial Ratio analysis
? Conclusion
? Appendices of calculations/data
? Consistent fonts and headings
Date: Course Name: Financial Accounting 1
Student Name: Student Number:
PACC6000 Business Report Rubric
Newcastle Business School
Criteria Standards
Weight % Fail
0-49 Pass 50-64 Credit 65-74 Distinction 75-84 High Distinction 85-100 Score
Executive Summary 10 Summary is minimal; key information is missing, and Insignificant details are prevalent.
Summary does not restate purpose, key arguments, facts, and figures.
Summary’s organisation follows no coherent order. Information is not tailored toward the audience. Summary is adequate; minimal information is missing. Summary is relatively free of insignificant details.
Summary restates the following: main purpose, key points, facts, and figures. Summary is organised in a reasonable manner
Summary shows evidence of audience awareness. Summary is good: key information is restated well, and minor details and author opinions are avoided. Summary restates main purpose, key points, facts, and figures well.
Summary is well organised. Information follows a logical order.
Summary is written for an executive audience. Summary is highly developed; all major points are restated clearly and concisely and minor details and opinions not apparent Well-developed summary which effectively restates main purpose, key points, facts, and figures. Summary follows a logical order and promotes clarity.
Information is well tailored toward executive audience. Summary is excellent: all major points are restated clearly and concisely, and no minor details and opinions appear. Excellent summary which restates main purpose, key points, facts, and figures.
Summary is highly organised and invites readers to read more. Information flows in a logical order creating clarity and interest; is tailored nicely toward executive audience. Executives can make decisions and take appropriate action.
Introduction 5 Does not provide adequate background and does not convey purpose or report’s form. Introductory information is adequate but can improve in development and clarity. Introductory information is clear and developed. Introduction is well developed: it’s clear, engaging, and thorough. Introduction is excellent: quick to engage a professional audience.
Analysis/
Inferences &
Results 50 Data is not relevant for purpose; presentation and interpretation of results are inaccurate. No visual supplements such as tables or graphs are included. Data is relevant, but presentation and
interpretation of results need work. Visual supplements are included and provide valuable information but warrant more thought and editing. Data is appropriate and relevant; presentation and analysis of data is good. Visual supplements are included and provide valuable information.
Data is appropriate and very relevant; presentation and analysis of data is thorough and engaging. Visual supplements are included and provide valuable information that is clear and professionally presented. Data is appropriate and very relevant; presentation and analysis of data is thorough, deep and sophisticated. Visual supplements are included and provide valuable information that is clear, professionally presented, and insightful.
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Conclusion &
Recommendations 25 Both are unclear and not connected to the report’s data. Adequate conclusions and recommendations are provided. Relevant conclusions and recommendations are provided and explained. Conclusions and recommendations are excellent with thorough explanation. Conclusions and
recommendations are pertinent, realistic, evidence-based, and detailed.
Report
Organisation &
Format 5 Continuity of argument and evidence is not apparent. Sections are poorly organised, and some are missing. Many formatting errors exist such as units of measure Continuity of argument and evidence is present. All required sections are included but may require further organisation. Formatting errors exist but do not impede the reader; correct units of measure Continuity of argument and evidence is clearly apparent. All required sections are included and organised. Minimal formatting errors exist. Continuity of argument and evidence is highly apparent. All required sections are included and well-structured and organized. No formatting errors exist. Continuity of argument and evidence is very professional. All required sections are effectively structured and organised. Free of formatting errors .
Mechanics, Spelling
& Grammar
Documentation and
Referencing 5 Numerous grammatical errors exist and impede meaning.
Report has numerous punctuation, spelling, or capitalization errors. Style is not concise or professional.
Essential information has not been added in the
Appendices Some grammatical errors exist but generally don’t impede meaning.
Report has some punctuation, spelling, or capitalization errors.
Style is generally concise; some additional editing may be warranted.
Some essential information has been added in the
Appendices Minimal grammatical errors exist and don’t impede meaning.
Report has minimal punctuation, spelling, or capitalization errors. Sentences contain minimal errors that don’t impede meaning. Style is concise and professional. Both sentences and style are good. Essential information has been organised and added in the Appendices No grammatical errors exist. Report is essentially free of punctuation, spelling, or capitalization errors. Sentences contain no errors and are diverse and sophisticated. Style is concise and professional. The report has clearly been edited and proofread. Essential information has been well organised and added in the Appendices No grammatical errors exist. Report is free of punctuation, spelling, or capitalization errors. Sentences are complex and sophisticated. Style is concise and professional. The report has clearly been edited and proofread numerous times. The appendices added are useful tools for the professional reader.
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