Published Financial Statements

1.0 Introduction

Reporting entities are required to produce financial statements in accordance with Accounting Standards. These statements are available to users such as investors, financial planners, lenders, creditors, employees and shareholders.

The Project requires students to review a selected 2012 financial report and answer questions relating to certain aspects of the entity. This is a Group project that requires teamwork and delegation to ensure the best possible result.

Each Group will consist of four (4) students.

This assessment will be marked out of 40 marks overall, which will represent 10% of the total course marks and are allocated as follows:

Answer to questions                   25 marks

Video Presentation – Group          10 marks

Referencing, etc                    5 marks

Total                                  40 marks, representing 10% total course marks

(A detailed marking rubric will be provided prior to Group work commencing)

2.0 Overview of the Project

The purpose of this Project is to familiarise students with published financial statements. The aim is to enhance skills in reading and interpreting consolidated financial statements, including providing the student with a better understanding of the impact of the accounting methods covered in ACCT7104.

This assessment will require students to self-regulate.  Teaching staff will not assist in group formation, entity selection or submission reminders, but WILL provide feedback and feed-forward, as well as being available for discussion of overall progress on the Project.

Conflicts may arise within the Group, and these should, at first instance, be resolved in a mature and adult manner between Group members.   Should the Group members be unable to resolve any conflict, a meeting will be organised with either the Course Coordinator or Associate Lecturer to enable an amicable solution.   Groups, once formed, will be required to allocate, organise and report in a professional manner.   (Please note:  Group members who do not adequately perform the Project requirements will be marked accordingly.)

3.0   Formation of Group

Groups must contain four (4) members and must have formed by Friday, 9 August 2013 at the latest (see paragraph below).

It is your responsibility to find group members through any communication device available to you, including, but not limited to, verbal discussion & use of the BlackBoard Discussion Board.  Unless an exceptional circumstance arises, the Teaching staff will not assist in group formation, entity selection or submission reminders.  

 To be exactly clear, to have “formed a Group” requires the following:

1. Four (4) students have positively agreed with each other to work together for this Project;

1. Using the Group form available from BlackBoard, the names, student ID’s, and signed acknowledgement of the students in your Group have been forwarded by e-mail to the Associate Lecturer (Danny Burton: d.burton@business.uq.edu.au) ; and

1. You have received a confirmation of receipt from the Associate Lecturer, which will also advise you of your Group designation/name, which must then be used in all communication/submissions.

4.0 Group Report (25 marks)

For the group report the Group will need to:

1. Select an ASX listed entity from the list provided on the ACCT7104 blackboard site.  All of these companies will have BOTH an operating segment disclosure AND at least one (1) joint venture per AASB131 in their published accounts.  Essential to this Project will be the ability to access the entity’s financial statements for the 2012 financial year via the Connect4 annual report database available through UQ Library &/or in the annual report, including full (not concise) financial statements of the entity for the 2012 financial year.  
2. In relation to the Group’s chosen entity, prepare a report that addresses all the following three sections (that is, A., B. & C.):

1. Review of Consolidated Financial Statements

Including specific page/notes to the accounts reference to the annual report, financial statements and associated notes, answer the following specific questions about your chosen entity:

1. What are the entity’s principal activities?

1. How much is consolidated profit after tax attributable to the shareholders of the parent entity for the 2012 financial year?

1. Who is the CEO? How much was CEO remuneration in the 2012 financial year?

1. Who are the auditors?  How much are audit fees for the 2012 financial year?

1. Does the entity have any subsidiaries (controlled entities)?  If so, how many? How many of these are 100% owned?  How many are less than 50% owned?  How many are foreign subsidiaries?; and

1. What is the value of consolidated goodwill?  Has there been any impairment of goodwill in the 2012 financial year?  If so, by how much?

B.  Application

1.        Clearly define, with reference to the AASB’s, what is meant by Joint Ventures/Joint Arrangements as disclosed in your chosen entity’s financial reports; and

Summarise the accounting methods that your chosen entity has used in the consolidated accounts for its joint ventures/joint arrangements, and describe           what basis has been used in the operating segments disclosure.   Ensure that you          identify all directly relevant Australian Accounting Standards (AASB) presentation, measurement and disclosure requirements;