{"id":183696,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/accounting-principles-for-business-decisions"},"modified":"2018-10-24T09:26:18","modified_gmt":"2018-10-24T09:26:18","slug":"accounting-principles-for-business-decisions","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/accounting-principles-for-business-decisions\/","title":{"rendered":"Accounting Principles for Business Decisions"},"content":{"rendered":"

Analyse and interpret information about financial position and performance.<\/p>\n

Apply accounting principles to business decision making.<\/p>\n

Use of financial accounting data to analyse a simple investment decision.<\/p>\n

Aim:<\/strong><\/p>\n

This assignment is designed to assess your ability to conduct both qualitative and<\/p>\n

quantitative analysis on financial information and to summarise and interpret your analysis.<\/p>\n

 <\/p>\n

Presentation of your assignment is extremely important<\/strong>.  The assignment must be typed<\/p>\n

and should be prepared with care.  Marks will be deducted for poor presentation<\/strong>.<\/p>\n

 <\/p>\n

Written discussion will be assessed on the following: <\/strong>its ability to clearly answer the<\/p>\n

question, readability, clarity of expression and grammar.<\/p>\n

 <\/p>\n

Tasks:<\/strong><\/p>\n

 <\/strong><\/p>\n

    \n
  1. You need to form a group a maximum of 3 (three) students. Every group is assigned to<\/li>\n<\/ol>\n

    choose 2 (two) Australian mining listed companies (BHP Billiton and Santos). Access their<\/p>\n

    annual reports from 2013 and 2014 and download the full reports.<\/p>\n

      \n
    1. Review 2013 and 2014 financial statements<\/li>\n<\/ol>\n

      Look at:<\/p>\n

       <\/p>\n

      2 year summary<\/p>\n

      Group\/consolidated income statement<\/p>\n

      Group\/consolidated balance sheet<\/p>\n

      Group\/consolidated cash flow statement<\/p>\n

      Notes to the Group Financial Statements where necessary<\/p>\n

       <\/p>\n

      Required:<\/strong><\/p>\n

       <\/strong><\/p>\n

      Provide a report of not more than 1,500 words. <\/strong><\/p>\n

       <\/p>\n

        \n
      1. Look at the Financial Review \/ 2 year summary. Profile an analysis of the<\/li>\n<\/ol>\n

        performance of each company from their 2 year summaries. Assess the operations<\/p>\n

        of each company by: (1) asset growth; (2) sales turnover growth; (3) profit growth;<\/p>\n

        (4) product range; (4) sustainability of the business, etc. etc.<\/p>\n

         <\/strong><\/p>\n

        1<\/p>\n

         <\/p>\n

        (10 Marks) <\/strong><\/p>\n

         <\/p>\n

          \n
        1. Compare the performance (income statement) (10 marks<\/strong>), balance sheet (10<\/strong><\/li>\n<\/ol>\n

          marks<\/strong>), and cash flows (10 marks<\/strong>) of both companies:<\/p>\n

          Hints:<\/p>\n

            \n
          1. Try to avoid analysing the absolute amount as it needs to be in relative values;<\/li>\n
          2. If it gets higher or lower, you need to explain what does it mean and what are<\/li>\n<\/ol>\n

            the consequences of the figures.<\/p>\n

            (30 marks) <\/strong><\/p>\n

             <\/strong><\/p>\n

              \n
            1. Conduct a ratio analysis to assess their profitability, efficiency, liquidity and financial<\/li>\n<\/ol>\n

              stability.<\/p>\n

               <\/p>\n

                \n
              1. Are the companies profitable (do you think each company is generating<\/li>\n<\/ol>\n

                healthy returns)? (10 marks<\/strong>)<\/p>\n

                  \n
                1. How well are the two companies managing their resources (are they efficient<\/li>\n<\/ol>\n

                  in managing their assets)? (10 marks<\/strong>)<\/p>\n

                  iii. Can they meet their short term debts and stay in operation in the short term?<\/p>\n

                  (10 marks<\/strong>)<\/p>\n

                    \n
                  1. Can they meet their long term debts and stay in operation in the long term,<\/li>\n<\/ol>\n

                    i.e. their long term financial stability? (10 marks<\/strong>)<\/p>\n

                      \n
                    1. Produce an overall summary of your analysis. If you were an investor would you be<\/li>\n<\/ol>\n

                      happy with the performance of each company?  Why?  Why not?  If you could only<\/p>\n

                      invest $1,000 in one of these two companies which one would you invest in, and<\/p>\n

                      why?<\/p>\n

                        \n
                      1. Professional presentation of your assignment in a clear readable format with<\/li>\n<\/ol>\n

                        appropriate referencing<\/p>\n

                         <\/p>\n

                         <\/p>\n","protected":false},"excerpt":{"rendered":"

                        Analyse and interpret information about financial position and performance. Apply accounting principles to business decision making. Use of financial accounting data to analyse a simple investment decision. Aim: This assignment is designed to assess your ability to conduct both qualitative Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-183696","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/183696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=183696"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/183696\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=183696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=183696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=183696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}