ACT B332F Company Accounting II (2024 Summer)

Java Python ACT B332F Company Accounting II (2024 Summer)

Assignment

Due date:        12 July 2024

Weighting:     15% of the total marks for the course

Word limit:   Not more than 2,000 words (excluding tables, diagrams, figures and appendices, if any)

Important Note Students should take note of the following when preparing and submitting their assignments: i.     Students are expected to follow the APA Style (7th edition) created by the American Psychological Association when citing sources in their assignments. A list of references should be included at the end of each assignment. ii.     Students  should upload  a  soft copy of their  assignment(s) to the OLE course page. Unless otherwise specified, all assignments should be submitted in Microsoft Word format. There is no need to submit the hard copy of the assignment(s). iii.     As a mechanism to maintain academic integrity, assignments uploaded on the OLE will automatically be  sent to Turnitin  for plagiarism  checking before  final  submission. Please refer to the quick start guide for submission of assignments to Turnitin on the OLE. iv.     Assignments must be submitted to the OLE by 5:00pm on the submission due date (12 July 2024). 10% of the marks awarded to the assignment will be deducted for each calendar   day   overdue   until   the   soft   copy   of   the   assignment   is   submitted.

Question 1 (100 marks)

Assignment: Financial Performance Analysis of a Food & Beverage Company Listed on the Hong Kong Stock Exchange

Objective:

This is an individual assignment, which requires you to demonstrate your ability to apply financial analysis techniques to real-world situations. The assignment requires you to apply the concepts and theories learned in the course ACT B332F to conduct an in-depth financial analysis of a food & beverage company listed on the Hong Kong Stock Exchange (HKEX).

Instructions:

Your task is to conduct an in-depth financial analysis of the company's cash flow, financial health,  and  overall   financial  position.  Your  recommendation   should  in  the   form.  of  a comprehensive report that presents an assessment of the company's financial performance and cash flow position in 2023. This report should also include a horizontal ACT B332F Company Accounting II (2024 Summer)  analysis using 2023 as the baseline year, as well as a vertical comparison of the company's performance with a competitor and/or the industry average.

To begin, you should select and recommend a food & beverage company listed on the Hong Kong Stock Exchange (HKEX). The analysis should cover the data from databases available in the University Library, such as HKEX news, Bloomberg and Thomson Reuters,

For the  selected  company,  you  should  provide  a  report  which  are  comprehensive,  well- researched, and professionally presented, reflecting your knowledge learnt from this course. Your report should be structured as follows:

1. Introduction

In order to provide a thorough analysis of the selected food & beverage company, students are required to provide a detailed discussion about the company's background information. This should include information about the company's history, governance  structure, regulatory environment, operations, financial management, and products. Additionally, students could also analyze the company's competitive landscape, including its market share, customer base, and key competitors.

The aim of this section is to provide a comprehensive overview of the company's key features, as well as to identify any potential risks or challenges that may impact the company's financial performance.  Students  should  also  consider  any  recent  developments  or  changes  in  the company's operations or regulatory environment that may impact its financial position.

2. Analysis of Financial Performance and Cash Flow Position

In this section, you are required to conduct an in-depth analysis of the company's financial standing. This analysis should cover various aspects ratios in the context of this course ACT B332F. You should utilize data and information from the company’s statement of financial position, statement of profit or loss, and cash flows statement.

To align with the clients' interest and investment objectives, you should apply at least three relevant financial ratios for the whole financial statement, and justify why the financial ratios you choose are important for the company, and also provide the related calculations in the appendix.

Second, to validate your stock recommendation, you  should conduct both horizontal and vertical analyses for your selected financial ratios:

A) Horizontal Analysis:

Compare historical data over consecutive accounting periods using 2023 as the baseline year. Discuss the results of this comparison, identify trends, and highlight growth patterns. This will allow you to assess the company's financial performance over time and identify any areas of improvement.

B) Vertical Analysis:

Compare the company's performance with that of its competitors and/or industry benchmarks. Based on this comparison, provide appropriate suggestions and recommendations. This will allow you to assess the company's competitive position in the industry and identify any areas where the company can improve its financial performance.

3. Conclusion with Suggestions and Recommendations

The  conclusion  section  of your  report  should  provide  a  summary  of your  findings  and recommendations for the selected food & beverage company. You should highlight the key points from your analysis, including the company's financial health, cash flow position, and competitive position in the industry. Based on your analysis, you should provide specific recommendations  for  the  company  to  improve  its  financial  performance  and  achieve  its investment objectives.

Your recommendations should be based on your assessment of the company's strengths and weaknesses, as well as its opportunities and threats in the market. You should consider the company's financial ratios, historical performance, and competitive landscape when making your recommendations. Your recommendations should be actionable and realistic, taking into account the company's resources and capabilities.

Overall, your conclusion should provide a clear and concise summary of your analysis and recommendations for the reader. Your recommendations should be well-supported by your analysis and reflect your expertise as an investment advisor.

4. Appendices

Attach the financial statements and selected notes to financial statements of your selected Hong Kong listed company and the selected competitor. The financial statements should be presented in a clear and organized manner, with appropriate labels and headings. Any assumptions or adjustments made during the analysis should be clearly stated in the appendices