ACC5215 Corporate Accounting Case Study Assignment Answer

Antony Christ

Information 

At USQ, Policy and Procedure guides our approach to assessment, and it is important  that all students are familiar with the relevant Policy and Procedure documents, and  annually complete the Mandatory Academic Integrity Training. You will not be able  to submit your case study files if you have not completed the integrity training this year.  

In the Assessment section of the StudyDesk for this course you will find: • A link to complete the mandatory academic integrity training 

  • Information regarding plagiarism and academic misconduct, such as collusion and  cheating (Academic Integrity Policy) 
  • Information about extensions (Assessment Policy and Assessment Procedures) • A link to request an extension 

You are strongly urged to complete this case study by yourself to receive clear feedback about your level of understanding of the course material. To ensure your submission is  your own work, plagiarism detection software is used. 

Case Study Objectives 

  • Integrate theoretical and technical accounting knowledge particularly in the area of finance and the relevant regulations, in order to exercise judgement at a professional level to provide possible solutions to emerging and/or advanced  accounting problem in complex contexts. 
  • Analyse and critically evaluate accounting topics in real world scenarios and  identify and consider ethical and cultural issues facing accountants operating in  corporations in the national and international business community. 

The case scenario  

Imagine that you are a recent graduate working for an accounting practice and your  manager has asked you to prepare an internal report. Your task is to prepare a high quality draft report, which will require only minor revision by your manager before its  submission to the client. Your report is an internal document of the accounting practice  and is kept on the client record.

University of Southern Queensland 1

ACC5215 Corporate Accounting Case Study 

Course objective – employability skills: 

Employers seek graduates with more than technical knowledge; they also look for skills  like communication (report writing), critical thinking and judgement, and ‘business  acumen’. This case provides an opportunity for you to produce a professional  standard piece of work that you can use as part of your portfolio, whether it be for  entry to the profession, promotion, or seeking a better position with another employer.  These skills are also highly relevant if you operate your own business.  

The report is not an essay. You should use headings and sub-headings, tables, charts, and diagrams to make your report easy to follow and understand. 

Case Study Companies 

  • Use the DatAnalysis database to download the following annual reports: o Metcash Limited Annual Report 2019 (113 pages) 

1. Woolworths Group Limited Annual Report 2019 (146 pages) 

  • This period is selected to avoid the effects of COVID in any analysis you undertake Case Study Preparation 
  • Provide a cover sheet (as per the one shown at the end of this document) • Page margin should be 1 inch (2.54 cm) all around. 
  • You should use Verdana font size 11 and 1.5 line spacing 
  • Tables should be clearly labelled and formatted  
  • You will prepare one report, consisting of two Word files. 
  • The first Word file will contain the body of the report. 

2. You should use Harvard style referencing in the body of your report 

3. A link to the university’s Harvard AGPS referencing style 

  • The second Word file will contain  
  1. Appendix A – List of References (using Harvard AGPS style for any  references used in preparing your report) 
  2. Appendix B – Sources of Authority (you are required to quote each  paragraph from an accounting standard and each section from legislation  identified or discussed in the report) 
  3. You should copy/paste the relevant paragraphs or sections from the  standard or legislation. This will not be plagiarism for the purposes of the  case study. 
  • The Word limit for the first Word file is 2,000 words (excludes in-text  references, headings, and sub-headings)

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ACC5215 Corporate Accounting Case Study 

  • There is no word limit for the second Word file. Only include those paragraphs  and sections referred to in the report. 
  • There is a link for each Word file in the Assessment section of the StudyDesk. 
  1. Turnitin: Plan to submit your first Word file before the due date to  receive your Turnitin Originality Report 
  2. You are expected act on this report. You should add in missing  references and re-write or correct quotes to minimise the Turnitin score  (the lower the score the more original your submission is – refer to the  guidance provided on StudyDesk about the use of Turnitin).  
  3. To assist with this process, you need to make up some of the assignment  details (to differentiate your submission from other student submissions);  make up a name for your accounting firm and your manager. 

Case Study Submission 

  • The case study must be lodged using USQ’s online submission system (MOODLE).  
  • You are required to use Microsoft Word (2003 and above); this software is  available to all USQ students. 
  • The two Word files must be submitted by on the due date (USQ time – please refer to the USQ Time icon on the course homepage). 

Extensions 

Extensions are only granted in extenuating circumstances and will not be granted after  the due date. Refer to the Assessment Policy and Assessment Procedures links in the  Assessment section of StudyDesk. Use the link provided there to make your application. 

Crashing of computers, too busy with other assignments and such reasons are not  considered extenuating circumstances. You must organise your study time around these  other commitments. Extensions will only be considered where supporting  documentation is provided (e.g. doctor’s certificate). Work commitments are generally  not considered to be extenuating circumstances. If you have had to do extensive  amounts of overtime or work-related travel you must provide a supporting letter from  your employer, which provides details of such circumstances. 

Late submission 

Please note that late submissions will be penalised. It is your job to submit your  assignment on time the due time and date is the LAST time and date for  submission without penalty.

University of Southern Queensland 3 

ACC5215 Corporate Accounting Case Study 

Report Requirements: 

Part A (About 200 words) (10 marks) 

Write a short description of the main reporting requirements of Chapter 2M of the  Corporations Act 2001 as they apply to Metcash and how and where they have been met  in the 2019 Annual report.  

Part B (About 400 words) (20 marks) 

Refer to the Directors’ report provided in the Metcash 2019 annual report. In the  Appendix, identify the minimum requirements of the Corporations Act 2001 that apply  to the Directors’ Report of Metcash, citing relevant sections.  

In the report, provide an analysis of these requirements that identifies and describes the  major matters that members need to know if they are to understand the overall financial  performance and position of the group. 

Part C (About 400 words) (20 marks) 

Analyse the financing arrangements and activities of Metcash during the 2019 year.  Your discussion might: 

  • Describe the equity components reported at year end 
  • Explain how and why they changed 
  • Describe the capital structure of the group 
  • Calculate appropriate ratios to analyse liquidity and solvency 

Part D (About 200 words) (10 marks) 

Identify the three most important asset categories for Metcash and provide an analysis  of these assets, including a brief description of the relevant accounting policies and  measurement basis (bases) and the key estimates and judgements made in relation to  these assets.  

Part E (About 800 words) (40 marks) 

Refer to the 2019 annual reports for Metcash and Woolworths and analyse and compare their financial performance. In an investment choice, which one would you recommend?  

In your discussion, you might: 

  • Calculate and compare accounting-based performance ratios (e.g. RoE and RoA) 
  • Calculate and compare share price-based performance ratios (e.g. PE and yield  ratios *) 
  • Calculate and compare the share return on an investment in the shares of each  company for the period covered by their annual report 
  • Compare and evaluate the performance of each company and justify your  recommendation 

* NOTE – there is no need to calculate earnings per share (EPS) – for each company, analyse / discuss the figure they  report for Diluted EPS attributable to the equity holders of the parent entity from continuing operations

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ACC5215 Corporate Accounting Case Study 

Sample Cover Sheet (exclude this line while copying)