1. 1. QUESTION

   BX3011 COMPANY ACCOUNTING

   GROUP ASSIGNMENT

   DUE: week 9 on Tuesday 21 January at 9pm 2020.

   • Submit your assignment with
     • Cover sheet signed by each group member
     • Assignment rubric sheet
     • Completed peer assessment sheet
   • Submit hard copy in relevant assignment box
   • Also submit via Safe assignment in Learn JCU
   • Late penalties will apply for late submissions

   ASSESSMENT VALUE 20%

   Objectives

   This assessment item relates to the subject and course learning outcomes:

    

   SLO4. Prepare group accounts

   SLO5. Conduct tax effect accounting

   CLO K2.Synthesise underlying principles and concepts for making business decisions

   CLO S3.Convey information clearly and fluently, in high quality written form appropriate for their audience

   CLO S5.Demonstrate the ability to work collaboratively

    

   Details

   This assessment is a group assignment and you are required to complete the assignment in order to pass the course.

   Company financial statement analysis:

    

   You are required to access the most recent annual report of one of the following companies listed on the Australian Stock Exchange (Annual reports are available via the JCU Library Database ‘DatAnalysis’. They are also available on the company website.):

    

   • Coca Cola Amatil Limited CCL
   • CSR Limited CSR
   • Elders Limited ELD
   • QBE Insurance Group Limited QBE

   Please note that reports that relate to companies other than the above, or years earlier than the most recent financial year, will not be marked and will receive a Zero grade.

    

   You are required to write an executive report with a maximum length of 2500 words, which will address all of the following points:

   1. Describe the nature of the company’s activities
   • What type of company
   • What industry
   • What are its core activities, key strategies for the future
   • How big
   • How old
   • Where is head office
   • Is it a parent company – yes – briefly show your understanding of group accounts and consolidation – what are the principals of consolidation
   • What is the presentation currency? Why?

    

   2. Discuss the composition of the company’s equity
   • What is equity – how is it defined
   • What are the figures
   • what accounts make up equity
   • What type of shares, fully or partly paid
   • What type of reserves
   • What is retained earnings figure

    

   3. Identify (look up and state) the Share price for the company’s ordinary shares for the last day of the financial year. What relationship does this have with the share capital as reported in the financial statements?
   • Does the market value of the share price bear any relationship to the $ share value as disclosed in the annual report? Should it?

    

   4. Identify the share price for the company’s ordinary shares one calendar month after the end of financial year. What may have caused any difference over this one month period?
   • Can you suggest any reasons why the share price has risen/fallen/stayed the same
   • Could be company specific factors, global factors, industry factors

    

   5. Discuss the debt structure and the source of external (i.e. non-equity) financing
   • What types of debt
   • How much $
   • Interest rates
   • Debt/equity ratio – is it ‘normal’ for this industry
   • Long term, short term, medium term

    

   6. Comment on the provision for income tax figure, deferred tax assets/liabilities
   • What are the balances of the current and deferred tax items – how does this compare with income tax expense
   • What are the amounts for deferred tax items, what assets and liabilities do they relate to
   • Have they increased or decreased since last year
   • How has company tax been calculated – for the consolidated group, or separate tax amounts for each entity
   • This is a complicated area made more difficult if there are foreign subsidiaries and other taxes (capital gains tax for example), Try to stick to the basic principles of accounting for company tax.

    

   7. Discuss the key elements in the fixed assets categories
   • Fixed assets – PPE AASB 116
   • What are the main categories, are these subdivided further
   • How do the types of Fixed assets relate to the particular industry
   • How are they measured
   • How are they depreciated

    

   8. Identify the intangible assets and discuss the policy for recognising the impairment of these asset
   • What are they – consider the industry
   • How much ($) – how does this $ compare to tangible asset $
   • Impairment issues
   • Increased or decreased
   • Would expect some goodwill in a parent company

    

   9. Summarise the company’s financial operations during the financial year (i.e. retained earnings, dividend distributions, changes in capital).
   • What went into and came out of Retained Earnings – how does this compare with the previous year – what were the main reasons for increases/decreases
   • Were there dividends, what type etc
   • Did share capital change – were there more shares issued, were there buybacks
   • How did the company fare overall

    

   • How did the company fare overall

   Throughout your assignment – where appropriate  –

   • Make comparisons with previous year
   • Consider industry norms
   • Support your writing with referencing

   Journals from elib, LearnJCU

    

    

    

    

   When preparing your report you should refer to:

   • the financial statements
   • disclosures
   • academic journals (minimum of 2)
   • textbooks (minimum of 3)
   • the assignment rubric

    

   You are not expected to systematically reference the annual report that you are analysing and you are not required to attach the financial statements to your report.  However, when referring to specific information inside your report, you should include a page and section reference to indicate the source of your information.  Any source other than the company financial report which you use in your report, such as journals and textbooks, should be referenced both in-text and at the end of text. 

    

    

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   Let’s consider the rubric

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

   BX3011 Company Accounting:  Assignment Rubric

   Criteria	Unsatisfactory (0%-49.9%)	Satisfactory (50%-74.9%)	Exemplary (75% -100%)	Mark
   K2(B) Critical application of theoretical concepts underpinning perspectives in industry based scenarios. Consider theoretical concepts in CF & standards	Fails to critically apply  theoretical concepts to a perspective	Applies sound critical application of theoretical concepts, drawing from at least one of more perspectives to demonstrate understanding.	Applies convincing critical application of theoretical concepts, that is both relevant and innovative, drawing from multiple/global perspectives to demonstrate understanding.	20
   S3(B) Content development: Logical flow, critical analysis, clear & relevant outcomes, concise and cohesive	Demonstrates  very limited ability to organise content in a logical, concise and cohesive manner.	Demonstrates sound ability to organise content in a logical, concise and cohesive manner with sound critical analysis, and outcomes supported with clear evidence	Demonstrates a high level of ability to organise content in a logical, concise and cohesive manner with high level critical analysis, and outcomes supported with quality evidence	20
   S3(D) Sources and evidence: Research evidence;  accurate, credible, relevant, current data sources referenced in appropriate style	Demonstrates very limited use of relevant research evidence from limited sources to support ideas that are appropriate for the style of writing and appropriate referencing.	Demonstrates sound use of relevant research evidence from an array of related sources to support ideas that are appropriate for the style of writing with accurate referencing.	Demonstrates a higher level use of relevant research evidence from an array of related sources to support ideas that are appropriate for the style of writing with accurate referencing.	20
   S5(A) Demonstrate ability to work collaboratively   Note that peer assessment is taken into account	Fails to demonstrate basic  ability to work in collaboration with others towards a common purpose	Demonstrates the basic  ability to work in collaboration with others towards a common purpose	Works in a highly constructive and cooperative learning environment with team members from diverse backgrounds. Makes opportunities to further the collaboration.	20
   SLO(4) Demonstrate an understanding of accounting for the  preparation of group accounts Parent company and principals of consolidation – goodwill	Demonstrated very limited understanding of accounting for the preparation of group accounts	Demonstrates a sound ability and understanding of accounting for the preparation of group accounts	Demonstrates a clear understanding of company accounting. Explains,  interprets and articulates the application of accounting for the preparation of group accounts	10
   SLO(5) Demonstrate an understanding of accounting for income tax	Demonstrated very limited understanding of accounting for income tax	Demonstrates a sound ability and understanding of accounting for income tax	Demonstrates a clear understanding of company accounting. Explains,  interprets and articulates the application of accounting for income tax	10
   			Total marks	100

    

    

   When structuring your report refer to the guides available under report writing in LearnJCU

   Eg from Writing Numeracy and Study Skills or I have put some resources under ‘Assessment’, ‘Group Assignment 20%’  folder

    

    

   Report presentation and layout

   Formal reports are usually divided into sections with numbered headings.  Although the structure of a report can vary, business and academic reports usually contain the following sections, in the given order:

   • Assignment cover sheet required only at JCU
   • Title page
   • Executive summary
   • Table of contents
   • Introduction
   • Report body – could divide into various (9) question areas
   • Conclusions
   • Reference list
   • Appendices

    

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