Financial Report Analysis

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Financial Report Analysis

Company Background Research

ISelect Limited Company is a locally-possessed publicly listed business, obtaining earnings from fees and commissions paid for the sale and comparison of online-based personal health, car and life insurance, individual finance products, energy and home credits. The corporation has activities in Internet Service Providers and Insurance Brokerage industries, both located in Australia. It operates to more than 10 countries worldwide. On the other hand, IDP Education Limited is a locally listed corporation obtaining its proceeds from provision of learners’ education and services and it operates in more than thirty nations across the globe (Carey et al., 2014).

Exchange rates- since Iselect Limited and IDP Education Limited operates in different nations across the globe, the fluctuations in the exchange rates could significantly effects on how much a corporation has to pay to its global suppliers (Carey et al., 2014). Recession has the ability to alter the purchasing preference of consumers, which can force Iselect Limited and IDP Education Limited companies to clear smaller volumes or drop their costs.

Demographic factors- basic features such as earnings level, gender and age that Iselect Limited and IDP Education company’s consumers tend to have in general could affect their operations. Regulatory measures taken by government in different nations where the two companies operate might affect the business operations leading to low income levels. Raw materials and labor are the two specific factors that can affect the two corporations (Carey et al., 2014).

Lending Decision

To start with, the company Times interest earned ratio was -31.75 in 2016, -320.65 in 2017 and -1.673 in 2018. In all the years, the times interest earned ratio was negative. It means that the management for iSelect Limited company paid extra interest on loans than what they got from its investments (Carey et al., 2014). iSelect Limited Company debt-to-asset ratio was 0.214, 0.239 and 0.313 in 2016, 2017 and 2018 in that order. For our case, iSelect Limited Company had a better ratio of less than 1, which means that it was not leveraged for the last three years.

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Description

Financial Report Analysis

Individual assignment

2

You have been randomly assigned two ASX listed companies that operate in the same industry (Company A
and Company B). See the file “Companies allocated to students” under the Assessment tab on Blackboard to
find your companies. Financial Report Analysis.

Research the financial press and other sources of available information to familiarise yourself with the industry
in which your allocated companies operate and with company specific factors that may have or will affect
either company’s performance.

Two business scenarios Company are described. Scenario 1 relates to Company A only and Scenario 2 involves
Company A and Company B. Knowledge of the industry, company specific context and their financial data will
be important inputs that inform the decision that you recommend in relation to each scenario.

Refer to assignment details on the Blackboard. Financial Report Analysis.
Assignment overview

3

The criteria and standards that will be applied in the assessment of this assignment are available on
Blackboard (under the “Assessment” tab). Review the rubric before you commence work to ensure you
understand the requirements of the assessment and how it will be assessed.
Assessment criteria

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You may seek guidance from lecturers, tutors or fellow students to clarify concepts or the application of
concepts to company financial statements in general. However, this assignment is to be completed on
an individual basis.

In addition, please look at the “Frequently Asked Questions (FAQs)” document uploaded on Blackboard,
which may have the clarifications you need.
Questions about assignment

5

Students are encouraged to read the UQ Student Integrity and Misconduct policy
(http://ppl.app.uq.edu.au/content/3.60.04-student-integrity-and-misconduct) which makes a comprehensive
statement about the University’s approach to plagiarism, including the approved use of plagiarism
detection software, the consequences of plagiarism and the principles associated with preventing
plagiarism. Financial Report Analysis.

Plagiarism will not be tolerated and students who are found to have plagiarized will receive a ZERO.

Your submitted assignment will be checked for plagiarism when you submit through Turn-it-in
Plagiarism

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Submit your work as a single PDF document. Include your student number and name as a header to the
document.

Your written responses to Assignment tasks 1, 3 & 4 are limited to a maximum of 4 pages (Times Roman
12 point type, 1.5 line spacing and minimum, 2 cm on each margin). Any submitted text exceeding this limit
will not be assessed.

Attach the Excel table of financial ratios for Assignment Task 2 as the 5th & 6th pages of the document
(excluded from page limit).

Attach a Reference List as the 7th page of the document. All sources used must be referenced using a
consistent academic reference style (e.g. Harvard Style of referencing). See Blackboard for information on
the UQBS preferred format (Writing Guide). To reference from an annual report use the ASX Code of the
company, year of the annual report and page number, e.g. COL 2018, p23).
Format

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a) Submit the assignment electronically as a PDF to the Turn-it-in link in the course Blackboard, under the
“Assessment” tab, then under “ACCT7101 Turn-it-in Assignment Submission Folder”. Follow the
submission instructions. The title of your assignment in the “Turn-it-in Submission Page” must be the ASX
code of your assigned Company A. Do not add anything else in the title. For example, Coles Group Ltd
title would be: COL.

b) The assignment can be submitted once only. Once submitted your assignment cannot be modified and
re-submitted. However, before submitting the assignment you can test it for text matching through a draft
submission in the “Draft Turn-it-in Assignment – To Test Originality” folder……. Financial Report Analysis…..

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