Assignment Topic: Critically analyze a listed firm’s fair value accounting (IFRS 13), revenue (IFRS 15), leases (IFRS 16), corporate governance and audit characteristics over time and answer the research question “are fair values and other accounting estimates a true reflection of the company’s performance?”

REQUIRED:

1. Collecting basic financial and corporate governance data from a listed firm’s annual reports. An Excel template is provided for each group with firm-years aligned for the group. You are required to fill the excel properly and clearly. The data you collect will be used in your essay. The following 2-4 are essay requirements.

2. Critically analyze:  The statement of comprehensive income of the company o E.g The trend of fair value gains, fair values losses, their impacts on company’s profits (ROE, ROA)  The statement of Financial position of the company o E.g fair value assets, fair value liabilities (Level 1, Level 2, Level 3) in relation to total assets. Analysis of investment property values (Note: investment properties are usually valued at Level 3 fair values in the real estate industry)

3. Discuss the firm’s corporate governance and ownership structure and provide suggestions on how to improve. You are required to discuss whether its corporate governance is good, based on the board and audit committee characteristics. What is the advantage of proper board and type of valuers in relation to fair value accounting? [You could discuss the firm’s board size, whether CEO and chairperson are the same person, how many independent directors, female directors, shareholder information, internal valuers or external valuers etc.]

4. Study and comment on the trend of the audit report of the company. Example was the opinion qualified or unqualified, were there any restatements, or going concern problems or any other necessary issues. Also, discuss if there were any significant changes in the accounting policies/estimates/methods in the company. The trend for the audit fees, non- fees and the trend relationship of these two type of fees in relation of Level 3 fair valuations of the company. Also, comment on the key audit matters mentioned in the audit report, and the type of key audit matter.

5. Study each director of a firm and read their biography, make an assessment on whether the qualification of the directors and the Chief executive officer (CEO) is appropriate in doing level 3 fair valuations of investment properties. (Hint: You have to assess the director’s qualification, whether there are accounting expert, valuation expert and then comment on their ability to fair value assets)