ACCT644 Advanced Financial Statement Analysis AY2023/24 Term 2Java

Java Python ACCT644 Advanced Financial Statement Analysis

(AY2023/24 Term 2, January 2024)

GROUP PROJECT INSTRUCTIONS

Aim and Scope

The aim of the project is to integrate the concepts, theories, and discussions in the course by examining a real company’s financial statements.

Key Specifications

Class will be divided into groups and each group will be given a company to analyze.

The project is due on March 15, 2024 (5 PM). The due date is near the end of the ninth instructional week. However, early submission is encouraged. Late submission with a valid reason may be accepted but subject to a penalty determined by the instructor.

The submitted project should include a main report and a spreadsheet containing the adjusted financial statements and relevant workings.

Report format:

•  1.5-line spacing and minimum font size of 11-point

•  One cover page with course code and title, your class section number, your group number and names, project title (company name), and submission date.

•  One executive summary page

•  Maximum 8 content pages

•  Maximum 10 pages in total, including cover page and executive summary

Electronic submission in Word/PDF format for main  report and Excel format for adjusted financial statements and relevant workings.

•  Submit the above two files separately (NOT as a zipped file) on eLearn. Use the combined section G1-2-4-5-6 and go to Assignments.

•  File name should follow this format: coursecode-sectionnumber-groupnumber-companyname (e.g., ACCT644-G2-Group2.1-DBS.pdf)

Project Contents

Your written report should include, but not be restricted to the following:

1. A brief business analysis (including economy, industry, and company strategies) which forms the basis of your subsequent financ ACCT644 Advanced Financial Statement Analysis AY2023/24 Term 2Java ial analysis. Note that before doing the business analysis, you should determine the purpose, which can be either equity valuation or credit and risk analysis, in this project. The purpose can influence your subsequent analysis.

2. Identify the company’s significant accounting and financial reporting choices that, in your opinion, do not reveal economic reality and can affect the quality and comparability of financial statements. You may refer to supplemental information from sources other than financial statements.

3. Evaluate the quality of the company’s financial statements and earnings and recommend appropriate adjustments for such desirable characteristics as sustainability or comparability.

4. Prepare adjusted financial statements, primarily the statement of financial position (balance sheet) and statement of profit and loss (or statement of comprehensive  income), and statement of cash flows (if it is desirable to reclassify certain items in the statement).

5. Conduct either equity valuation or credit and risk analysis (see Step 1) based on the adjusted financial data. You may use any valuation model(s), financial ratios, or credit/bankruptcy analysis model(s) that you believe are most appropriate, along with appropriate benchmarks, to form. the basis of your conclusion.

Assessment & Evaluation

The group project report carries 30% of the total marks for the course. Credit will be given for good analysis, quality content and rationale, creativity, good writing style, and appealing report. You can assume that the readers understand most basic concepts of accounting, finance, and financial reporting, and you need not describe irrelevant facts or information. Write to the point and choose your words/sentences judiciously. A concise and well-thought analysis will earn you more credit than a lengthy discourse