27/September/2024

11.59pm(Melb/Sydneytime)

This assignment aims to understand different classes of assets and liabilities reported by companies and the measurement basis used for each class of assets. It also seeksto develop anunderstanding ofstudentson differentitemsreported as other comprehensive and their significance (ULO 1, 3, 4, 5). Students are then required to examine the measurement, accounting treatment and disclosure of asset retirement/environmental rehabilitation obligations in detail.

ThisassessmentwillcoverthefollowingUnitLearningObjectives:

• Apply Australian Accounting Standards and Corporate Legislation to the financialreportingprocessesforcompaniesandcorporategroups;(ULO1)

• Demonstrate the ability to prepare financial statements and financial reportsforcompaniesandconsolidatedfinancialstatementsforcorporate groups; (ULO 2)
• Evaluate financial reporting contexts and select appropriate accounting practices and standards congruent with the situation of individual companies and corporate groups (ULO 4)
• Demonstrate the ability to communicate the financial results of the companiesorcorporategroupstoadiverserangeofstakeholders.(ULO5)

1. AllworkmustbesubmittedonBlackboardbytheduedatealongwitha completed Assignment Cover Page.
2. TheassignmentmustbeinMSWordformatunlessotherwisespecified.

• All work must be submitted on Blackboard by the due date andtime,alongwith a completed Assessment Cover Page. Late penalties apply.
• Your answers must be based on Holmes Institute syllabus of this unit. Outside sourcesmaynotamounttomorethan10%ofanyanswerandmustbecorrectly referenced in full.Over-reliance on outside sources will be penalised

• Reference sources must be cited in the text of the reportandlistedappropriately at the end in a reference list using Holmes Institute Adapted Harvard

  Referencing.Penaltiesare associated with incorrect citationandreferencing.

1.Introduction of the company:

-Briefly introduce the selected publicly listed company and providean overview of the company's industry.

1. Cashflow statement analysis
   • Analyse the cashflow statement for the most recent fiscal year.
   • Identify and explain the three main sections of the cashflow statement: operating activities, investing activities, and financing activities.

3.Direct and indirect method of cashflow statement?

-How does the direct method of cashflow statement differ from the indirect method of cash flow statement?

1. Operating cashflow
   • Breakdowntheoperatingactivitiessectionofthecashflowstatement
   • Identifythemajorsourcesandusesofcashwithinoperatingactivities
   • Assessthecompany'sabilitytogeneratepositivecashflowfromitscore operations.

1. Investing activities:
   • Examinetheinvestingactivitiessectionofthecashflowstatement.
   • Discussthesignificantinvestmentdecisionsordivestituresmadebythe company
   • Evaluatehowtheseinvestingactivitiescontributetothecompany's strategic objectives

1. Financing activities
   • Explorethefinancingactivitiessectionofthecashflowstatement
   • Identifyanydebtissuancesorrepayments,stockrepurchases,ordividend payments.
   • Assesstheimpactoffinancingactivitiesonthecompany'scapitalstructure and shareholder value.

1. Cashflow ratios
   • Calculateandanalysekeycashflowratiossuchastheoperatingcashflow ratio, free cash flow, and cash flow to debt ratio.
   • Discussthesignificanceoftheseratiosinassessingthecompany'sfinancial stability and liquidity.

8.Comparative analysis

-Compare the cash flow performance of the selected company over two years,aswellascurrentandpreviousyears,andhighlightanddiscussany differences or similarities in cash flow patterns and financial strategies.

Introduction and Cash Flow Statement Analysis (6 marks)

Demonstratesagood understanding of the subject-relevant theory,withaccurate explanations and applications, butwith some areas needing more clarity

ordetail.

The subject-relevant theory is incorrectly applied or explained, or an entirely incorrect model/theoryisused, not consistent with what is taught at

Holmes.

Direct and Indirect Method of Cash Flow Statement (4 marks)

The theory is explained and applied accurately, thoughtheremaybe a need for more depthorprecisionin understanding both

methods.

Operating Cash Flow(6 marks)

The theory is well- explained and correctly applied, with a solid understanding of operatingcashflows, though minor issues

maybe present.

The theory is explained and appliedcorrectly,but there are areas wheretheanalysisof operating cash flows could be stronger or

more detailed.

Thetheoryisclearly explained and

comprehensivelyapplied,

Thetheoryiswell- explained and

correctlyapplied,

The theory is explainedand

appliedaccurately,

The theory is either notfullyexplainedor

applied,showing

The theory is incorrectlyappliedor

explained,oran

with a strong understanding of investing activities, thoughtheremaybe

minorissues.

Financing Activities(6 marks)

The theory is well- explained and correctly applied, with a solid understanding of financing activities, though minor improvementscould

bemade.

Cash Flow Ratios(6 marks)

The theory is clearly explained and comprehensively applied, demonstrating deep understandingandaccurate calculation and interpretation of cash flow

ratios.

The theory is well- explained and correctly applied, with a strong understanding of cash flow ratios, thoughminorissues

maybe present.

Comparative Analysis and Conclusion(6marks)

Theanalysisiseither incorrect or lacks depth, with unsupported or unclear conclusions, or an incorrect model/theory not taught at Holmes is

used.