Course Code and Name: FNS50217 – Diploma of Accounting
Unit Code: FNSACC511
Unit Title: Provide financial and business performance information
Scenario:
Your firm has been approached by Fosters management for possible engagement of accounting and business services.
1.
You are required to create a letter of engagement including a cover letter discussing Fosters needs including;
- Reviews of progress plans against agreed criteria and how/when they will be communicated
- The monitoring of objectives to identify changes if any
- Obtainment of feedback and how/when any shortfalls in customer service will be identified and addressed.
Your firm is now required to analyse financial data. (For this case study, students should refer to the Fosters 2011 Annual Report Fosters Annual Report 2011.pdf). Students must complete the following:
2.
Detail what authorities / personnel / sources you would have to consult with to ensure the financial data provided is accurate and complete. Give a thorough explanation how you would reconcile the financial data to confirm accuracy.
3.
Undertake both a vertical and horizontal analysis of the Fosters consolidated income statements for the years ending 30 June 2010 and 30 June 2011
4.
Complete a Profit and Loss report for year ending 30 June 2011 as well as a debt-to-equity ratio for the 2011 financial year.
5.
Utilising appropriate models and financial and quantitative data from the Annual Report provide an environmental and further financial analysis of Fosters Group – any suspected problem areas should be highlighted.
6.
Assess the Statement of Cash Flows in the Annual report – explain why there was a significant decrease in cash at the end of the year ending 30 June 2011 compared with the previous financial year.
7.
Based on the above analyses, comment on the financial performance of Fosters in the last financial year – specifically on the following aspects:
· Profitability
· Financial Stability
· Efficiency
8.
If the objective of Fosters management was to consolidate their earnings and post a moderate increase in the previous year’s profit, have they achieved this? Has the above analyses demonstrated this information – if not, undertake a further analysis of the statements to determine this.
9.
Lastly, assess the financial potential of Fosters Group Ltd. Using the financial data provided in the 2011 financial report. Discuss what funding requirements would be required in the future to continue the same rate of growth over the last financial year. Also list the statutory obligations of the company.
Students must undertake the above analysis tasks in accordance with standard accounting techniques. Spreadsheet or appropriate accounting software must be used – hand written analyses will not be accepted.
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Imagine Education
Assessment Project
Part C
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Course Code and Name: FNS50217 – Diploma of Accounting
Unit Code: FNSACC511
Unit Title: Provide financial and business performance information
Please read the following project and answer all of the questions:
Students are to utilise the analyses completed in the case study for Fosters. For this project, students must prepare detailed written advice to the Management of Fosters regarding the following:
- Include all the relevant analyses in the case study to compose a detailed written report on financial performance for the year ending 30 June 2011.
- Make sure in addition to the financial analysis, you include the following in your report:
- Discuss compliance protocols in place – are they sufficient to meet statutory requirements? Do they meet all the Corporate Governance principles?
- Outline reporting and lodgement timeframes for the 2009 business year
- Research and comment on the following
- What are the financial risks that should be considered – e.g. Debtor default, stability of global economy, operating costs etc
- For the above risks, outline options for contingencies – e.g. Insurance options, investment options etc.
- Give advice on how Fosters can ensure they do not have another similar loss of cash at the end of the next financial year
- Include a detailed section on the rights and obligations of the client – ensure you include:
- All relevant laws, i.e. corporation law, legislative protection, contract law, privacy law, taxation legislation etc.
- Conclude with a list of alternative sources of short and long term investment, giving a brief description of each.