You are required to select two companies from two different industries $($manufacturing and

merchandising$)$ in Australia and complete the following two tasks using their most recent annual reports:

Task I: Understanding financial statements$$ items

Compare and contrast the detailed information provided in the financial reports $($i$.$e the Income statement,

the Balance Sheet, Statement of Cash flows and Statement of changes in Equity$)$ of the two selected

companies. Summarise the differences in their formats, contents, structure and presentation. Provide at

least two explanations for all the differences you have identified using the format shown below: $($You do

not need to explain the differences in terms of financial value of the recorded items. The exemplar

below is taken from a student who did well previously. This is just for guidance $-$ please do not

copy, you should identify your own differences.$)$

Task I

Coca$-$Cola Qatars Airways

Task II: Understanding financial statements in detail

You are required to answer the following questions using one of the companies selected for Task

I $($Total: $10$ marks $-$ includes $1$ mark for citing and referencing$)$:

Question $1(1$ mark$)$

Describe the principal activities of the company.

Question $2(1\mathrm{.}5$ marks$)$

Identify the method of depreciation the company uses to depreciate their property, plant and equipment.

Which note $($number$)$ deals with this?

Question $3(2$ marks$)$

Describe the purpose of the external auditor's report.

Explain why the auditors must declare their independence.

Question $4(1\mathrm{.}5$ marks$)$

How are trade and other receivables measured? Identify the note $($number$)$ that deals with this.

Question $5(1\mathrm{.}5$ marks$)$

Identify how the amounts in the financial report for this company are rounded and briefly explain why

rounding occurs

Question $6(1\mathrm{.}5$ marks$)$

Identify the regulations for which the financial statements should comply with as outlined in the Director$$s

declaration? Give at least $2.$

Explain the rationale for regulating public companies.