HI5020 Corporate Accounting<\/p>\n
The two companies have been selected.<\/p>\n
Coca-Cola Amatil Ltd and Farm Pride Foods Ltd.<\/p>\n
HI5020 Corporate Accounting<\/p>\n
Assessment item 2 \u2014 Assignment<\/p>\n
Due date: 11.59pm Friday Week 10<\/p>\n
Weighting: 30 %<\/p>\n
Total Marks: 30<\/p>\n
Instructions:<\/p>\n
be accepted.<\/p>\n
her\/his own work. Plagiarism will be heavily penalised<\/p>\n
Format of the Report<\/p>\n
<\/p>\n
Your submitted assignment at least should have the following details:<\/p>\n
A brief introduction of the companies you had chosen and an overview of what you<\/p>\n
discussed in this assignment<\/p>\n
be a futile exercise.)<\/p>\n
Assessment task<\/p>\n
Select two public limited companies listed on the Australian Securities Exchange (ASX) that<\/p>\n
are in the same industry. Go to the website of your selected companies. Then go to the Investor<\/p>\n
Relations section of the website. This section may be called, \u201cInvestors\u201d, \u201cShareholder<\/p>\n
Information\u201d or similar name.<\/p>\n
In this section, go to your companies\u2019 annual reports and save to your computer your firms\u2019<\/p>\n
latest annual reports consecutively for last three years. Do not use your companies\u2019 interim<\/p>\n
financial statements or their concise financial statements. Please read the financial statements<\/p>\n
(balance sheet, income statement, statement of changes in owner\u2019s equity, cash flow statement)<\/p>\n
very carefully. Also please read the relevant footnotes of your companies\u2019 financial statements<\/p>\n
carefully and include information from these footnotes in your answer.<\/p>\n
You need to do the following tasks:<\/p>\n
OWNERS EQUITY (5 Marks)<\/p>\n
(i) From your companies\u2019 financial statements, list each item of equity and write your<\/p>\n
understanding of each item. Discuss any changes in each item of equity for your<\/p>\n
firms over the past year articulating the reasons for the change.<\/p>\n
(ii) Provide a comparative analysis of the debt and equity position of the two firms that<\/p>\n
you have selected.<\/p>\n
CASH FLOWS STATEMENT (5 Marks)<\/p>\n
(iii) From the financial statement of your chosen companies, list each item reported in<\/p>\n
the cash flows statement and write your understanding of each item. Discuss any<\/p>\n
changes in each item of cash flows statement for your companies over the past years<\/p>\n
articulating the reasons for the change.<\/p>\n
(iv) Provide a comparative analysis of your companies\u2019 three broad categories of cash<\/p>\n
flows (operating activities, investing activities, financing activities) and make acomparative evaluation for three years.<\/p>\n
(v) Also provide a comparative analysis of the two companies that you have selected<\/p>\n
explaining the insights that you can get from the comparative analysis.<\/p>\n
OTHER COMPREHENSIVE INCOME STATEMENT (5 Marks)<\/p>\n
(vi) What items have been reported in the other comprehensive income statement for<\/p>\n
each company?<\/p>\n
(vii) Why have these items not been reported in Income Statement\/Profit and Loss<\/p>\n
Statements?<\/p>\n
(viii) Provide a comparative analysis of the items shown in the other comprehensive<\/p>\n
income statement section for the two companies. If these items were included in the<\/p>\n
income statement \/ profit and loss statements of each company, how would the<\/p>\n
profit attributable to shareholders of the company be affected?<\/p>\n
Should other comprehensive income be included in evaluating the performance of<\/p>\n
managers of the company?<\/p>\n
ACCOUNTING FOR CROPORATE INCOME TAX (15 Marks)<\/p>\n
(x) What are the tax expenses shown in the latest financial statements of the two<\/p>\n
companies that you have selected?<\/p>\n
(xi) Calculate the effective tax rate for both companies that you have selected.<\/p>\n
Effective tax rate is calculated as (income tax expense \/ earnings before tax).<\/p>\n
Which one of the companies has the higher effective tax rate?<\/p>\n
(xii) Comment on deferred tax assets\/liabilities that is reported in the balance sheet<\/p>\n
articulating the possible reasons why they have been recorded.<\/p>\n
(xiii) Was there any increase or decrease in the deferred tax assets or in the deferred tax<\/p>\n
liability reported by each of your selected companies?<\/p>\n
(xiv) Please calculate the cash tax amount for both companies using the book tax<\/p>\n
amount, changes in the deferred tax assets and deferred tax liability (please do<\/p>\n
your own research for your better understanding of these concepts and the method<\/p>\n
of calculating the cash tax amount the book tax amount.)<\/p>\n
(xv) Calculate the cash tax rate for both companies. Which company has higher cash<\/p>\n
tax rate? (Please do your own research to familiarise yourself with how to<\/p>\n
calculate cash tax rate).<\/p>\n
(xvi) Why is the cash tax rate different from the book tax rate?<\/p>\n
Please remember some aspects of your companies\u2019 treatment of tax can be a very complicated<\/p>\n
area, particularly for some companies. For a better understanding of the concepts included in<\/p>\n
the assignment that has not been introduced in the class, please do your own research.<\/p>\n
PRESENTATION<\/p>\n
You might have to do a presentation in the class where your lecturer will question you from<\/p>\n
different angles of the assignment and you will have to satisfy the lecturer that you were<\/p>\n
sufficiently and appropriately involved in preparing the assignment. The presentation will take<\/p>\n
place in the last hour of the classes of week 11 and week 12. It is the discretion of the lecturer<\/p>\n
either to ask any student to do the presentation or to award marks to a student without asking<\/p>\n
to do the presentation. However, every student needs to be prepared for the presentation and<\/p>\n
well conversant about everything that has been written in the submitted assignment.<\/p>\n","protected":false},"excerpt":{"rendered":"
HI5020 Corporate Accounting The two companies have been selected. Coca-Cola Amatil Ltd and Farm Pride Foods Ltd. HI5020 Corporate Accounting Assessment item 2 \u2014 Assignment Due date: 11.59pm Friday Week 10 Weighting: 30 % Total Marks: 30 Instructions: This assignment 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":[1],"tags":[],"class_list":["post-426528","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/426528","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=426528"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/426528\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=426528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=426528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=426528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}