CMA101 Introduction to Accounting Assessment 2

This is an individual assignment in which you will analyse the financialstatements of a public company.Preparation: Study topics 1-7 through following the study guide and readings.Presentation: Your assignment solution should be presented in a suitable manner for reading bya client and the written discussion should be clear, unambiguous and concise.Please submit in MSWord format only and please apply the SafeAssign software(available on Learnline) prior to submission.Assessment: The task will be assessed against the following criteria:• Suitability of the choice of ratios;• Accuracy of the calculations;• Ability to correctly apply analysis techniques;• Understanding of the information provided by the techniques;• Communication of the required assignment outputs such that they wouldbe useful to managers in exercising their duties;• English expression – how well you express yourselves, concise style, nocolloquialisms, absence of grammatical errors etc.; and,• Presentation – for example, ease of reading for the reader, structure of theassignment, neatness, professionalism, correct MSWord format, lack ofspelling errors etc.Note: you are expected to write concisely without repetition, colloquialisms orverbosity. The marker will pay attention to the accuracy of the content (i.e., is itcorrect), information content of the analysis, coverage of relevant issues, structureof your argument, English expression, absence of plagiarism, concise writingstyle and referencing style.Ensure that you understand what “plagiarism” means and the penalties that youwill incur if you are found to have plagiarised any part of your assignment. Thismeans not just presenting the ideas of others as your own without correctreferencing, but also copying another student’s work, irrespective of the totalpercentage copied.Do not share files with other students – submission of any amount of identicalwork constitutes plagiarism and you are liable for charges of misconductregardless of whether you copied the work or provided the original work toothers.Ensure that you have applied SafeAssign to your assignment prior to submissionon Learnline.Assignment:Select a company listed on the Australian Stock Exchange and obtain its published annual reportfor the year ended 30 June 2013 (the financial reports are presented on a comparative basis).Analyse the financial statements in these annual reports, using the principal ratios that arediscussed in your textbook. You do not need to calculate all of the ratios listed. Part of the task isto select relevant ratios. Some ratios may be discussed in the context of explaining trends that areidentified by other ratios.Note that there are very few marks for calculating ratios. The majority of marks are awarded forthe interpretation of the ratios—what are they telling you? Avoid wasting words on describingthe ratios. For example, ‘The decline of the current ratio from 2.2 to 1.5 (Appendix A item 5) canbe explained by reference to … This suggests that tighter management of … is required’ willearn far more marks than ‘The current ratio is calculated by dividing current assets by currentliabilities. It has gone from 2.2 to 1.5. Another solvency ratio is …’Format:You should prese nt this assignment as a report with at least one Appendix. A report formatmeans that it should have headings, and possibly also subheadings. Start the report with a 100150 word executive summary of the findings of the analysis. The ratios should be presented in auser-friendly format (i.e. easy to read) in an appendix. In the report make it clear where thereader can find the ratios. Close the report with conclusions and recommendations.Recommendations to an internal client will highlight issues for attention and action;recommendations to an external client should succinctly address the competitiveness of thecompany, the strengths and weaknesses of its management and its attraction for investment.