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Assignment – Understanding Financial Statements
Length: 2000 words
Individual Component
All listed companies are required to prepare annual reports and lodge these with the ASX (Australian Stock Exchange). While this is a legal requirement internally management of the company use information prepared by accountants on a regular basis to make a range of operational, strategic and management decisions. Additionally investors and potential investors also use the information provided in annual reports.
Both management and investors use a range of interpretive techniques to make assessments and draw conclusions about a company.
Required
Referring to the 2012 and 2013 annual reports of Australian Vintage available at the link below,
http://www.australianvintage.com.au/Investors/AnnualReports.aspxhttp://www.australianvintage.com.au/Investors/AnnualReports.aspx complete the following:
Apply TWO of the interpretive techniques to analyse the financial data contained in the financial statements (40% weightage)
Discuss and draw conclusions about the company’s profitability, liquidity and gearing (40% weightage)
Critique the usefulness of publically available financial information contained in the annual report of a company from the perspective of a potential investor (20% weightage)
Structure of the Report
Executive summary
Table of contents
Introduction
Body
Conclusion
References (At least 15 APA Style)
Appendix [consisting of all relevant calculations (two interpretive techniques)]
Your report must include as an appendix details of all calculations completed as part of the interpretive techniques applied to reach your conclusions, the primary focus is not the actual calculations rather your ability to apply and interpret the results within a business context, referring to comparisons and benchmarks, as appropriate.
NOTE: Please make sure there is no plagiarism at all. The report is done in accordance to the Annual reports of Australian Vintage 2012…