Analysis of Real Accounting Data in a Simulated Environment

BAO2202

Financial Accounting

Assignment Semester 1 2012

Analysis of Real Accounting Data in a Simulated Environment

Background situation of simulation:

You are working in the Investment Advice section of the strategic planning department of a major organization. Your organisation is considering the Australian equities market.

Management have called a meeting of you and three of your colleagues, and during the meeting have discussed the effects of the legal need of public listed corporations to conform to the Australian Financial Reporting Standards. They have asked you and your colleagues to sample a selection of ASX listed companies, and establish the extent to which companies comply in detail with the spirit of the law. Management are curious about the compliance in regard to several particular areas of the Standards, in particular, leasing, Equity statements, including the recording of management bonus options and shares, Cash Flow Statements, Intangibles, Tax Effect Accounting, and Segment activities. Management however believe that as an indicator, only four of these need to be investigated.

Required:

Your assignment is to complete a report to management in this regard.

You are to form into groups of four for the submission of this assignment

Three weeks before due date, you may commence testing your assignment for originality (30%) on TURNITIN which will be available on WebCT/Blackboard.

You must submit a printed copy of the assignment, the company's Annual Report and the TURNITIN report when you hand in the assignment.

This report is to meet the report style set out in Campbell G. "The Little Black Book"

You are to select one company from the ASX list of the top 100 companies.

You are then to obtain a copy of that company's latest annual report and undertake four of the following analyses:

1. Examine the company's Leasing, and analyse the nature of any finance leases, and any operating lease arrangements. In particular you are asked to ascertain if the information provided is in compliance with the relevant Accounting Standards.

2. Examine the Statement of Equity (or equivalent) section of the accounts and investigate if the data provided conforms with the relevant Accounting Standards.

3. Examine the company's Cash Flow Statements and confirm that the information provided conforms with the relevant Accounting Standards.

4. Examine