NEED HELP WITH ACCOUNTING ASSIGNMENT. DATA WILL BE PROVIDED

"000 vodafone AU "3' 6:56 pm @- 1 0' 49% C} . share the results to date of your investigations (i.e. 'l (c) and '|(d) with your other group members by storing it in the shared folder. Make sure your tutor is linked to that folder . you may already be forming an impression of how well your company uses its resources to generate wealth, so you can share that too. This however does not need to be in the form of a carefully written essay - the work you share will not be marked. The plan is that, because of the sharing within the group, you will be able to finalise a better version of the individual essay than you could otherwise. The individual essay that is marked will be the version you submit in Week 12 . much of what you share should be about the accounting methods used by your company to measure 4 of the financial statement items on which ROA depends. You are examining these four partly in order to discover if any issues exist, e.g. whether the company changed its methods across the three years, and whether your company i3 E E years, and whether your company accounts differently to other companies in the group. Ultimately, it is best if all group members examine the same four and this is something you can work out in the next stage. Note that a performance indicator in the the Marking Crieria for the Group Essay is "Quality of explanation of at least 3 issues". If as a group you plan ahead, these "3 issues" will come from those you identified as individuals in Part 1 in Week 12, a good assignment will be more one that demonstrates you were critical in how you used accounting information in order to make a decision, rather than one that calculates and presents lots of ratios. The key requirement is that you don't "take numbers at face value": you need to know what they represented and how they were measured often when faced with a problem, the exactly correct thing to do will not be apparent, it may not even exist. Thus this assignment will require judgement. Often a good way to resolve problems is by thinking "what will best help me fnrm my rmininn?\" E E these "3 issues" will come from those you identified as individuals in Part 'I o in Week 12, a good assignment will be more one that demonstrates you were critical in how you used accounting information in order to make a decision, rather than one that calculates and presents lots of ratios. The key requirement is that you don't "take numbers at face value": you need to know what they represented and how they were measured 0 often when faced with a problem, the exactly correct thing to do will not be apparent, it may not even exist. Thus this assignment will require judgement. Often a good way to resolve problems is by thinking "what will best help me form my opinion?" 0 Remember there is a forum on which you can ask questions about the assignment. It is also a good idea to keep an eye on the answers given there . Finally please make sure you have joined your group code's discussion forum on Moodle and that you have registered for the two peer assessments, F3 E E a few students have talked to me about Requirement (c) in Part 1 and so I'm writing to share my answer with everyone. The requirement is "Critically review the use of ROA (Return on Assets) as an indicator for your purposes of how a company's resources are used to generate wealth, and how different companies might measure it in different ways. Decide 3 asset categories (items) and 1 income statement item which you think will require closer inspection before you rely on ROA information to form your opinion about how well resources are used to generate wealth". As you think about how well the managers of your selected company use resources to generate wealth, you will certainly consider those resources that are recognised as accounting assets, and how well you think wealth is represented by accounting profit. Therefore the RDA ratio is an important input to your thinking since the greater the RDA number, the more profit was generated from the company's average assets. But as critical users of accounting information, you can't take the RCA number F] E E But as critical users of accounting information, you can't take the RCA number at face value and thus base decisions upon it!. Therefore you need to critically review the RCA ratio as an input to your thinking/decision making. Your opinion of how well assets are used may depend on the different types of assets your company and the other companies in your group have. For example, two companies may both require property in order to generate wealth; one owns the property and therefore has a significant asset called 'property' whereas the second company leases its properties and therefore only has a small assets called property or perhaps no property asset at all. You need to know about this if you are to develop an informed opinion. Moreover, the balance sheet of two companies may show they have the same asset and therefore both their ROA numbers take account of them, but the two companies hay have chosen different ways of measuring their values: one may have measured based on historic cost and the other on fair value. You need to know whether differences like this exist before you can make a sensible r'nmnr-u'iqnn nf RDA: [n F3 E E Moreover, the balance sheet of two companies may show they have the same asset and therefore both their ROA numbers take account of them, but the two companies hay have chosen different ways of measuring their values: one may have measured based on historic cost and the other on fair value. You need to know whether differences like this exist before you can make a sensible comparison of ROAs. In lecture 7 I gave more examples of the ways in which financial statements (and therefore ratios) can differ significantly depending on the choice of accounting methods and the ways important values are estimated. Thus this requirement asks you to choose four financial statement items and take a closer look at what they mean, how they are measured and whether these change in any of the three years so that you can take account of whatever you find out in the process of deciding how well your company used its resources to generate wealth; and also when your group decides how your set of companies rank (ie which one is best, which one poorest, etc). I said 4 (3 from balance sheet and 1 from income statement) but I'm flexible: take 2 from balance sheet F] E E Thus this requirement asks you to choose four financial statement items and take a closer look at what they mean, how they are measured and whether these change in any of the three years so that you can take account of whatever you find out in the process of deciding how well your company used its resources to generate wealth; and also when your group decides how your set of companies rank (ie which one is best, which one poorest, etc). I said 4 (3 from balance sheet and 'I from income statement) but I'm flexible: take 2 from balance sheet and 2 from income statement if you think that will make for a better assignment. In closing, the critical review of ROA as a decision-input requires detective work. It is an inquiry. You start by thinking about the things that might matter and you search for information to confirm or refute it. What you find out may lead to more questions that require answers and so you search again. The main source of information will be the "Notes to the Accounts" that follow the financial statements in each of the three Annual Reports. A good way of finding relevant sections of the Notes is to follow the cross-referencing numbers that appear f3 E E find out may lead to more questions that require answers and so you search again. The main source of information will be the "Notes to the Accounts" that follow the financial statements in each of the three Annual Reports. A good way of finding relevant sections of the Notes is to follow the cross-referencing numbers that appear alongside the item of interest in the Income statement and balance sheet. So by the 5pm Monday 'lst May deadline, you need to share what you have found out with your group members so that you can learn from each other's experience and begin to identify the issues you, as a group, will have to take account of when comparing companies. This may result in some group members going back to examine the background to additional financial statement items, or examining the same ones but in more depth. Remember there's a forum in the Assignment section on Moodle on which you can ask questions, and also see the answers to questions other students have asked, kind regards F] E E Page 1 qattachments_14458936b629cbd8d886973d7086805a1893617c ASX Code Company Name Item 06/14 06/15 06/16 NBL Noni B Limited Operating Revenue 112136000 107869000 107463000 NBL Noni B Limited Other Revenue 2785000 2452000 2900000 NBL Noni B Limited Total Revenue Excluding Interest 114921000 110321000 Page 2 qattachments_14458936b629cbd8d886973d7086805a1893617c 110363000 NBL Noni B Limited Operating Expenses -115206000 -113499000 -104991000 NBL Noni B Limited EBITDA -285000 -3178000 5372000 NBL Noni B Limited Depreciation -2914000 -2273000 -2254000 NBL Noni B Limited Page 3 qattachments_14458936b629cbd8d886973d7086805a1893617c Amortisation -272000 0 0 NBL Noni B Limited Depreciation and Amortisation -3186000 -2273000 -2254000 NBL Noni B Limited EBIT -3471000 -5451000 3118000 NBL Noni B Limited Interest Revenue 157000 91000 Page 4 qattachments_14458936b629cbd8d886973d7086805a1893617c 115000 NBL Noni B Limited Interest Expense -17000 -17000 -5000 NBL Noni B Limited Net Interest Expense 140000 74000 110000 NBL Noni B Limited PreTax Profit -3331000 -5377000 3228000 NBL Noni B Limited Tax Expense Page 5 qattachments_14458936b629cbd8d886973d7086805a1893617c 1149000 1054000 -1128000 NBL Noni B Limited Net Profit after Tax Before Abnormals -2182000 -4323000 2100000 NBL Noni B Limited Abnormals -5661000 -467000 110000 NBL Noni B Limited Abnormals Tax 0 0 Page 6 qattachments_14458936b629cbd8d886973d7086805a1893617c 0 NBL Noni B Limited Net Abnormals -5661000 -467000 110000 NBL Noni B Limited Reported NPAT After Abnormals -7843000 -4790000 2210000 NBL Noni B Limited Outside Equity Interests 0 0 0 NBL Noni B Limited Shares Outstanding at Period End Page 7 qattachments_14458936b629cbd8d886973d7086805a1893617c 32090136 32090136 39081040 NBL Noni B Limited Weighted Average Number of Shares 32090136 32090136 35981000 NBL Noni B Limited EPS Adjusted (cents/share) -6.80 -13.47 5.84 NBL Noni B Limited EPS After Abnormals (cents/share) -24.44 -14.93 6.14 Page 8 qattachments_14458936b629cbd8d886973d7086805a1893617c ASX Code Company Name Item 06/14 06/15 06/16 NBL Noni B Limited CA - Cash 5313000 8493000 12919000 NBL Noni B Limited CA - Receivables 1034000 484000 Page 9 qattachments_14458936b629cbd8d886973d7086805a1893617c 1506000 NBL Noni B Limited CA - Prepaid Expenses 0 0 0 NBL Noni B Limited CA - Inventories 11773000 9939000 11419000 NBL Noni B Limited CA - Investments 0 0 0 NBL Noni B Limited CA - NCA Held Sale Page 10 qattachments_14458936b629cbd8d886973d7086805a1893617c 0 0 0 NBL Noni B Limited CA - Other 618000 0 327000 NBL Noni B Limited Total Current Assets 18738000 18916000 26171000 NBL Noni B Limited NCA - Receivables 3000 185000 Page 11 qattachments_14458936b629cbd8d886973d7086805a1893617c 0 NBL Noni B Limited NCA - Inventories 0 0 0 NBL Noni B Limited NCA - Investments 0 0 0 NBL Noni B Limited NCA - PP&E 7369000 5059000 6416000 NBL Noni B Limited NCA - Intangibles(ExGW) Page 12 qattachments_14458936b629cbd8d886973d7086805a1893617c 0 0 494000 NBL Noni B Limited NCA - Goodwill 0 0 0 NBL Noni B Limited NCA - Future Tax Benefit 3852000 4886000 3737000 NBL Noni B Limited NCA - Other 0 0 153000 Page 13 qattachments_14458936b629cbd8d886973d7086805a1893617c NBL Noni B Limited Total NCA 11224000 10130000 10800000 NBL Noni B Limited Total Assets 29962000 29046000 36971000 NBL Noni B Limited CL - Account Payable 10927000 14667000 17712000 NBL Noni B Limited CL - Short-Term Debt Page 14 qattachments_14458936b629cbd8d886973d7086805a1893617c 107000 116000 33000 NBL Noni B Limited CL - Provisions 4295000 4479000 4533000 NBL Noni B Limited CL - NCL Held Sale 0 0 0 NBL Noni B Limited CL - Other 0 0 0 Page 15 qattachments_14458936b629cbd8d886973d7086805a1893617c NBL Noni B Limited Total Curr. Liabilities 15329000 19262000 22278000 NBL Noni B Limited NCL - Account Payable 821000 440000 2099000 NBL Noni B Limited NCL - Long-Term Debt 230000 93000 0 NBL Noni B Limited NCL - Provisions 881000 Page 16 qattachments_14458936b629cbd8d886973d7086805a1893617c 869000 644000 NBL Noni B Limited NCL - Other 0 0 0 NBL Noni B Limited Total NCL 1932000 1402000 2743000 NBL Noni B Limited Total Liabilities 17261000 20664000 25021000 Page 17 qattachments_14458936b629cbd8d886973d7086805a1893617c NBL Noni B Limited Share Capital 20754000 20754000 21710000 NBL Noni B Limited Reserves 271000 742000 1144000 NBL Noni B Limited Retained Earnings -8324000 -13114000 -10904000 NBL Noni B Limited Other Equity 0 Page 18 qattachments_14458936b629cbd8d886973d7086805a1893617c 0 0 NBL Noni B Limited Convertible Equity 0 0 0