Professional Documents
Culture Documents
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10
Table of Contents
1 Introduction 3
2 Timeline 3
4 Financial Statements 8
8 Ratio Analysis 26
10 Critical Assessment 36
11 Bibliography 37
2
Introduction
This report has been prepared to comparatively analyse the Financial Performance and
Financial Position of REA Group Limited and Beach Energy Limited to make an investment
of $50,000 in one of the two companies. To do a comparative analysis of REA Group
Limited and Beach Energy Limited, we have explored the Annual Reports, Financial
Statements, and Ratio Analysis to draw our conclusion for investment.
Timeline
3
Section Start End Milestone Team
Date Date Members
Team Formulation,
Company Allocation, Assignment discussion,
Work Division Syncing schedules,
formulating a plan, Team
Building Activities,
Discussion of contingency
plans Group Effort on
14/8/2022 17/8/2022 Zoom Call
REA - Kunal,
Overview and Research into company Shubhangi,
Background profile, Drafting of BPT -
Information gathered data Paramveer and
22/8/2022 24/8/2022 Jiit
4
Ratio Analysis Calculating and
understanding and Jiit Keyur Shah,
analysing key ratios Paramveer
3/9/2022 3/9/2022 Singh Matharoo
5
Overview and Background Information
REA Group is a real estate public listed company on ASX (Australian Stock Exchange)
founded in the year 1995, News Corp Australia owns majority chunk of stake in REA Group.
Current Share price of REA is around $124.05 as on 10/09/2022 with last one year return of
around -20.12%. Its current capitalization is around $16,389,140,769 and ranks at 23 of 2,415
on Australian Stock Exchange based on its size.
REA Group comprises of a lot of subsidies as its strategy has always been to aggressively
expand the group internationally through acquisition. The expansion started from the
realestate.com.au, Which is Australia’s largest property website with an around 4.4 million
unique potential clients each month. Its acquisition list comprises of casa.it, an Italian website
which was acquired from 59% in 2007 to 100% in 2011, Athome a group of real-estate
websites from 4 different places (Germany, France, Belgium, and Luxembourg). In around
2016 the group acquired flatmates.com.au, very prominent website in Australia for real-estate
Group acquired an UK based company called UK Property shop Ltd in the year 2008 and six
years later in 2014 they bought 20% US company called “move” which is responsible for US
real estate listing website Realtor.com which allowed to REA Group to enter and expand in
the US market.
On 11 September 2007 the Group published its about their first acquisition in Asia with a
purchase of Hongkong’s biggest English-language property magazine called “Squarefoot”.
REA Group in Asia then Acquired iProperty group, Brickz.my. One of the biggest mergers
for the group happened recently in 2021 with PropertyGuru, after competing over the market
dominance for years. The southeast Asian assets are in Malaysia and Thailand and transferred
to PropertyGuru in exchange for an 18% ownership in the company and a seat on board of
the company.
Company’s offices are in several major locations in Australia such Adelaide, Brisbane,
Melbourne, Perth, and Sydney. Company has only one office in India located in Delhi NCR
region.
The company’s market capitalization has changed significantly over the past 2 years. It fell to
around $6.26 Billion on 31st March 2020 and highest it has been on
6th November 2021 of around $17.26B, currently it’s around $16,389,140,769. Its revenue
saw a sudden decline of almost -8.34% in 2020 due to pandemic and grew in 2022 with a
positive change of 24.65%.
REA Group has a workforce of almost 2800 people with almost 12.6million monthly average
audience on realestate.com.au and 121.9million over all platforms including the application.
Company’s employee gender parity across Australian business is about 50:50. In terms of
work environment company was ranked 4th as Australia’s best workplace in 2021by great
place to work. REA Group is also a certified carbon neutral by Australian government’s
climate Activate program.
6
Beach Energy, also known as Beach Petroleum Limited is an oil and gas exploration
company founded by Dr. Reg Sprigg in 1961 and was listed on 30th June 1972. The
company’s headquarters is in Adelaide, with offices in Melbourne, Perth, and New
Plymouth with a total of almost 550 employees. It has 5 basins for oil and gas
production across the ANZ region. It is also a key market player in the Australian East
Coast Gas Market, operating around 12% of domestic gas volumes in 2020.
The company’s major operations include exploring, producing, and supplying oil and
gas to onshore gas markets within the Australia – New Zealand region. The major 5
basins, all of them being operated by Beach 50% or more are namely, Cooper Basin
(South Australia), Beharra Springs and Waitsia (Perth), Katnook (South Australia),
Victoria Ottawa Basin and Bass Basin (near Melbourne) and finally Kupe (near New
Plymouth).
The company achieves around 55% of its total production by gas with almost 80% of
it from the east coast itself. Other production sources include LPG, Condensate and
Oil. Of these markets, Beach operated around 15% of the New Zealand Gas market
with the Kupe Gas facility and 21% of the East coast market. The Otway Basin,
Western Flank Oil and Cooper Basin combined contributed 69% of Beach Financial
Year 2021 production, owing to the East Coast market alone.
As of writing this document, the company has a market capitalization of 3.80 billion
AUD and ranks 115 of 2415 companies in the ASX and ranks 12 of 169 companies in
the Energy sector. One of the major highlights would be the acquisition of Senex
Energy’s, Cooper Basin assets for 83 million in March 2021 which is a step forward
to penetrate the East Coast Market. Other than that, this was Beach’s safest year on
record with 3 million hours worked without a Lost time injury. Also, Beach plans to
go NET ZERO scope 1 and scope 2 emissions by 2050, targeting a 25% reduction by
2025.
7
Financial Statements of Companies
A. Income Statements
Expenses
Incomes
Profit / Loss
8
Profit(loss) = Total Revenue – Total expenses
Total Revenue = Revenue from Property and Online Advertising + Revenue from financial
services + Gain on Acquisition/ Disposal of Subsidiaries + Share of Losses of associates
9
Beach Energy Limited
Total Expenses = Cost of Sales + Other Expenses + Finance Expenses + Income Tax
Expenses
Total Expenses = $967,100,000 + $203,700,000 + $6,400,000 + $120,300,000
Total Expenses = $1,297,500,000
10
B. Cash Flow Statements
11
Net Increase/Decrease in Cash Flows= Net Cash Flows from Operating Activities + Net
Cash Flows from Investing Activities + Net Cash Flows from Financing Activities
Cash and cash Equivalents at the end of the period = Cash and cash equivalents at the
beginning + Net Increase/Decrease in Cash Flows + Effects of exchange rates + Cash and
Cash Equivalents held for sale at the end of the year = $222,845,000 - $48,306,000 -
$782,000 - $4,888,000
12
Beach Energy Limited
Net Change in Cash Flows = Net cash from Operating Activities - Net Cash used in
Operating Activities + Net cash from Financing Activities
Net Change in Cash flows = $759,800,000 - $757,800,000 +$ 21,000,000
Net Change in Cash flows = $23,000,000
Cash and Cash Equivalents on 30 June 2021 = Cash and Cash Equivalents on 1 July 2020
+ Net Change in Cash Flows - Effects of Exchange Rates on the balance of cash held in
foreign currencies
13
C. Statement of Changes in Equity
14
Ending balance of Retained Earnings = Opening Balance of retained earnings + Profits for
the year - Dividends
Dividends = $150,392,000
15
Beach Energy Limited
Ending Balance for Retained Earning = Opening Balance for Retained Earning + Profit for
the year
16
D. Statement of Financial Position
As on 30 June, 2021
17
Assets = Liabilities + Equity
Cash and cash equivalents at the beginning of the year was $222,845,000 and at the end
of the year was $168,869,000.
18
Beach Energy Limited
Cash and cash Equivalents were $109,900,000 on 1 July 2020 and $126,700,000 on 30
June 2021
19
Linkages between Financial Statements
20
III. Linkage between the Statement of Cash calculate the Retained Earnings or Accumulated
Flow and the Statement of Financial Position: Losses of the company.
21
Other information in the Annual Report
The first section of the report discusses the Key Highlights of the performance of the
company over the financial year. The section includes an overview of the company’s
revenue, market share, product-related information, and financial results (Profit after Tax,
EBITDA, Earnings per share, etc.).
The Annual Report also includes the Chairman’s Report or Chair Review which consists
of insights into the inner workings of the management. This includes the changes in Capital
and Debt of the company, acknowledgment of misstatements in the previous financial year by
the company, changes in the Board of Directors, and the company’s vision.
The Chief Executive Officer’s Review includes the challenges faced by the company,
strategies implemented to overcome challenges (such as the impact of COVID 19 pandemic),
future goals, changes in management, achievements, and legal disputes.
The Director's Report includes the names of the Directors, their duties, background,
qualifications, and other directorships. The report also includes the committees the Directors
are involved in. The Management Commentary narrates the Financial Statements prepared by
the company following the International Financial Reporting Standards (IFRS) or Generally
Accepted Accounting Principles (GAAP). Moreover, it consists of the remuneration report
that details the considerations received by the Key Management Personnel (Chairman, Non-
Executive Directors, CEO, and CFO).
The Auditor’s Report is prepared by an external, independent auditor, assuring true and fair
representation of the financial statements of the company, in accordance with IFRS. The
Auditor’s report ensures that the company’s financial statements are free of material
misstatements, aiding stakeholders who rely on the results of the report. The Auditor’s
Declaration is a statement made by the auditor that the information presented in the annual
report is best to their knowledge.
The Corporate Governance Statement provides the structure that ensures the stakeholders
that the company is committed to good corporate governance and complies with all
applicable laws and regulations, and follows best practices published by the ASX Corporate
Governance Council.
The Directors Declaration affirms that the financial statements are in accordance with the
Accounting Standards, Corporations Act 2001, and other compulsory reporting essentials, it
also ensures that the company will be able to pay off all its liabilities whenever they become
due.
22
The Shareholder Information section of the annual report discloses the major equity
security holders with their holding percentages along with the total number of equity
shareholders and total capital raised through shares.
The Corporate Directory includes the names of directors, registered offices, advisors,
bankers, executive teams, etc.
23
Contents of Financial Statements
I. Income Statement
Beach Energy’s revenue model is product-based, while REA Group has an investment and
subscription-based revenue model. Hence, the main source of income for Beach Energy
Limited is the Sales of goods amounting to revenue of $1,519,400,000 and the primary
source of income for REA limited is Property and Online Advertising Revenue, which
totals $903,837,000.
Being a Refining company, Beach Energy’s main expenses are attributed to the field and
depreciation of petroleum assets. For the year 2021, these expenses (cost of sales) amounted
to $967,100,000. On the other hand, REA, being a Real Estate and Marketing Company as a
Service company in a highly competitive market, incurs high Depreciation, Marketing and
Employee Benefit Expenses worth $375,119,000.
Beach Energy, being an established company operating since 1961, Beach also entered into
an asset purchase agreement in January 2021 with Mitsui subsidiaries AWE Petroleum Pty
Ltd and AWE (Bass Gas) Pty Ltd to acquire all its interests in the Bass Basin. (Note 26) and
thus, has tangible petroleum assets worth $3,173,800,000, as the highest value assets,
compared to relatively newer companies like REA Group Limited. On the other hand, REA
Limited has made several tactical acquisitions globally, with its biggest acquisition being that
of iProperty amounting to $534 million, so the company can further pursue its growth
objectives and make tactical acquisitions over the course of its existence. (REA Mergers and
Acquisitions Summary – mergr)
Shareholder’s Equity Ratio expresses the total assets purchased from equity rather than debt.
It can be written as-
Beach Energy Limited has 62.42% of its assets financed by Total Equity amounting to
$4496,600,000 and the remaining 37.58% of its assets are financed by debt. The total equity
includes Share Capital of $1,857,800,000, Reserves $872,700,000 and retained earnings
$76,300,000. On the other hand, REA Limited has financed 48.02% of its assets from Total
Equity amounting to $1,139,221,000, and the remaining 51.98% of its assets are financed by
debt. The total equity includes Share Capital of $152,140,000, Reserves $40,358,000 and
Retained Earnings $34876,547,000.
24
III. Statement of Cash Flows
The main source of cash inflow and cash outflow for Beach Energy Limited is from its
Operating Activities through Receipts from customers inclusive of GST amounting to
$1,624,300,000 and Payments to Suppliers and Employees inclusive of GST is
$692,600,000, respectively. Beach Energy Limited being a well-established company earns
most of its revenue from sales and the cost of sales accommodates most of its expenditure.
The major source of cash inflow and cash outflow for REA Limited is from Operating
Activities through proceedings from Receipts from customers amounting to $997,422,000
and Payments to Suppliers and Employees inclusive of GST is $471,967,000. REA
Limited despite being a company using Software as a Service platform for Real Estate and
Marketing Services has most of its revenue and expenditure from Operating Activities to
maintain its financial soundness.
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Ratio Analysis
1. Profitability Ratios: These ratios indicate the relationship between the company’s Profits
and Sales, Operations, Assets, or Equity.
I. Return on Assets: This ratio measures the net profit generated by each dollar invested in
Average Total Assets.
Average total assets = (Total asset at the beginning of the year + Total asset at the end of the
year)/2
A) REA Group
B) Beach Energy
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II. Profit Margin: This ratio measures the relationship between Net Profit and Net Sales.
A) REA Group
B) Beach Energy
27
2. Liquidity Ratio: These ratios are used to indicate a company’s ability to pay its short-
term liabilities
A) REA Group
B) Beach Energy
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II. Current Ratio: This ratio evaluates the relationship between Current Assets and Current
Liabilities, which indicated the ability of a company to meet its short-term debts. The ideal
Current Ratio is 2:1.
A) REA Group
B) Beach Energy
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III. Current Cash Debt Coverage Ratio: This ratio indicates a company’s ability to
generate adequate cash from operating activities to pay off its short-term liabilities
Current Cash Debt Coverage Ratio = Net cash provided by Operating Activities
/Average current liabilities.
Average Current Liabilities = (Total Current Liabilities at the beginning of the year + Total
Current Liabilities at the end of the year)/2
A) REA Group
Average Current Liabilities = (Total Current Liabilities at the beginning of the year +
Total Current Liabilities at the end of the year)/2
Current Cash Debt Coverage Ratio = Net cash provided by Operating Activities /Average
current liabilities
B) Beach Energy
Average Current Liabilities = (Total Current Liabilities at the beginning of the year + Total
Current Liabilities at the end of the year)/2
30
Current Cash Debt Coverage Ratio = $759,800,000 / $427,600,000
31
3) Solvency Ratios: These ratios are a measure of the ability of a company to meet its long-
term liabilities. Solvency Ratios are especially useful for potential and existing creditors as
they indicate the financial health of the company.
I. Debt to Total Asset Ratio: This ratio shows the relationship between total liabilities and
total assets of a company. It indicates the portion of assets financed by debt rather than by
shareholder’s funds.
A) REA Group
B) Beach Energy
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II. Cash Debt Coverage = Measures the company’s ability to pay off its liabilities with cash
from its operating activities.
Cash Debt Coverage = Net cash provided by Operating Activities / Average Total
Liabilities
Average Total Liabilities = (Total Liabilities at the beginning of the year + Total Liabilities at
the end of the year)/2
A) REA Group
Average Total Liabilities = (Total Liabilities at the beginning of the year + Total Liabilities at
the end of the year)/2
Cash Debt Coverage = Net cash provided by Operating Activities / Average Total Liabilities
B) Beach Energy
Average Total Liabilities = (Total Liabilities at the beginning of the year + Total Liabilities at
the end of the year)/2
Cash Debt Coverage = Net cash provided by Operating Activities / Average Total Liabilities
33
Investment Decision and Limitations
The amount that needs to be invested is $50,000. As a rational investor, would have a low -
risk appetite and effective risk to return ratio. To make such investment decision we need to
consider the financial ratios of both REA Group limited and Beach Energy such as Liquidity,
Solvency and Profitability ratio which will help us analyse their position and provide good
understanding of their fundamental background.
Liquidity Analysis:
Current ratios help investors understand how the company shall clear off its short-term debts
and other payables. A current ratio of a company of more than 2 is considered not ideal for
making an investment decision. The current ratio of the REA group is around 1.95 and for
Beach Energy, it is around 1.68. Both companies are utilizing their current assets well but
Beach energy in this case has a better utilization and working of their current assets than the
REA Group.
The current cash debt coverage ratio helps investors identify whether the company can cover
its debt with the present operating cash flow. The current cash debt coverage ratio of a
company is less than 1 implying that the company has low liquidity. The current cash debt
coverage ratio of the REA Group is 0.96 and for Beach Energy, it is 1.78. Hence, we can see
that Beach Energy is more liquid enough to clear its debts.
In the case of liquidity ratios, Beach energy is more favoured than the REA Group from an
investor’s point of view.
Solvency Analysis:
The Debt to Total Assets ratio shows how much debt did the company use to finance its
assets. The higher the ratio, the higher risk of investing in that particular company for the
investor. The ideal Debt to Total Assets ratio should not be more than 0.4 for a company. The
Debt to Total Assets ratio for REA Group is 0.512 and for Beach Energy, it is 0.3401.
Clearly, Beach Energy has used much less debt than the REA group to finance its assets, and
hence is less risky for investors to make an investment in Beach Energy.
In the case of cash debt coverage, investors analyse if the company can pay off its long-term
debts with cash from the operations of the business. Anything more than 0.2 is considered to
be a good cash debt coverage ratio. The REA Group has a cash debt coverage ratio of 0.329
and Beach Energy has a cash debt coverage ratio of 0.508. Both the companies have a desired
rate of cash debt coverage ratio, but Beach energy has a better and more favourable rate than
the REA Group.
34
From the data above we can see that Beach Energy is a more favourable investment for an
investor in terms of the solvency aspect.
Profitability Analysis:
Every investor wants to maximize his profit. A higher return on assets is more beneficial to
the investor. In this case, the return on assets of the REA Group is 15.8% and for Beach
Energy, it is 7.12%. We can clearly see that the ROA of REA Group is much more
favourable than the ROA of Beach Energy. Hence investing money in the REA Group seems
to be more appealing than Beach Energy.
Moreover, an investor looks for an asset that generates a higher profit margin. Keeping that in
mind the profit margin of REA Group is around 30.4% and for Beach Energy, it is 20.26%.
From the data mentioned, we can see that the REA Group has a higher profit margin and
hence is the more favourable of the two companies for an investor to make an investment.
From the above profitability ratios, we can see that REA Group outperforms Beach energy
when it comes to the profitability aspect. But we shall analyse other ratios as well.
The overall net profit for Beach energy has decreased from $499,100,000 in 2020 to
$316,500,000 in 2021 majorly due to the downgrade in production that year, this is witnessed
by the company’s share price which plummeted 24.1 per cent to $1.28. On the other hand, net
profit for REA Group has significantly increased from $112,585,000 in 2020 to $312,983,000
in 2021 depicting a steady growth in last 2 years. Company’s assets have increased as well as
its liabilities with a 24.22% drop in its cash and cash equivalents. In comparison among both
REA Group has surpassed its previous financial position.
Beach energy shows a healthy financial report with meting its short term as long-term debt
obligations in required period. Major changes that can be noticed in the financial report of the
company is in its long-term debt which increased from $92,000,000 in 2020 to $200,100,000
in 2021 almost 117.5% increases, also its short-term debt obligation increased significantly
from $26,800,000 to $77,000,000 which is approximately 187.31% increase, showing an
expansion strategy by the company. On the other hand, REA Group saw some major changes
in its assets which increased from $1,591,000,000 in 2020 to $2,372,000,000 in 2021. Short
term debt for the company went significantly down from $76,470,000 in 2020 to $8,820,000
which depicts its strong position in the market and adequate operation profit for the year. The
concerning part for the company is its liabilities which jumped from being $726,000,000 to
$1,233,100,000, Although the trend in its profit graph is positive and profit margin for REA
Group is almost 12% more than beach energy.
35
Limitations-
a) Inflation Effects- In regard to the Covid Pandemic in the past few years, with
Inflation ramping up, to new highs in both first and third world countries, any ratio
analysis fails to take into account the effects it may have had to undervalue or
overvalue costs/ revenue/profit. This is in turn might provide an amazing ratio but lost
all credibility regarding how these factors might affect the company in the future
Critical Assessment
Investing in a company should be a complex and informed decision for any investor, be it in a
volatile company they know the inner workings of, or its a company with a far more secure
Return on Investment, which would probably encourage a majority of the market to invest in.
Given the companies, Beach Energy and REA, we have companies from completely different
sides of industry, with REA having a much better Return on Investment, while Beach is
starting to enjoy the fruits of a good 2018 investment with the Lattice acquisition and slowly
penetrating the market. While return on investment should be the primary goal for any
investor, seeing the progressive reforms ( Net Zero by 2050) and future capability of Beach
Petroleum, our team would suggest Beach Petroleum worthy of that investment.
36
Bibliography
1. Investopedia.com/ratioanalysis
2. Beachenergy/ourhistory
3. Beachenergry/aboutus
4. Marketindex.com
5. Ft.com
6. Asx.com.au
7. Globaldata.com
8. Rea/aboutus
37
ACM Research Project rubric – each section has equal weighting
38
Outstanding (High Distinction) Above satisfactory Satisfactory (Pass) Unsatisfactory (Fail)
(Credit/Distinction)
1 Time line A well thought out and presented A thoughtful plan and some A simple plan but no evidence or Little evidence that this work was
plan evidence that students met and record of what they did planned or that students worked to
Clear objectives with milestones tried to work to the plan a plan
and who is responsible for what
Evidence that students met and
kept a record of what they did
2. Overview Provides accurate and complete Provides accurate information with Provides information but shows Provides very basic/brief
and information. some elaboration on details such evidence of cut and paste and may information;
background Shows evidence of further research as what the main business is, e.g. not have written it in own words. Answers in dot points; and/or
(i.e. looked in more than the not just retail or manufacturing but Does not provide overview of both
annual report) details on what they sell or Written in own words but only just companies.
Well written and explained. manufacture, where they operate gives an overview – lack of
Logical and concise. etc. thought/evidence – could do
better.
A good summary.
3. Financial Provides accurate information to Provides statements as required. Provides statements as required. Provides extra information, not just
Statements all financial statements, well the required section (i.e. screen
labeled and easy to read. Information highlighted. Information highlighted but shot of whole screen).
Income unclear.
Statement Structure follow statements. Structure shown. Unable to read reports.
Structure shown but unclear.
Balance sheet Each statement on a new page. Required information is not
The above may be given but not highlighted in different colors.
Changes in All in the correct order. following the statements so it is
equity difficult to check against the Structure not clearly shown for all
statement. statements.
Cash Flows
Did not follow instructions (this
includes presentation of the order
of statements)
11
39
4. Show Easy to follow the links, well set Shows correct links. Only some linkages are correct. Does not provide all statements.
linkages out and professionally presented.
between Does not show linkages or is
statements incorrect.
Did not ensure that it was on a
single page.
Provided more than one diagram.
Drew a new diagram instead of
using the company reports
Did not follow instructions.
5. Other Gives a good account of the whole Identifies most key parts and Identities some key parts of report; Does not identify key parts of
information report and what is in each section explains the purpose. or lists key parts only, e.g. report.
in report without giving actual details of the Chairman’s report, Managing’s
individual company. report, Auditor’s report, etc.
e.g. An auditors reports gives
assurance of the validity of the
reports but not what the auditor
said about the company.
6. Content of Identifies all components correctly. Identifies all components correctly. Gets some components incorrect; Does not identity all the correct
financial Gives a good explanation for all. Gives a good explanation for some. and/or attempted explanation but components; and/or
statements Succinctly presented and lacking of substance. Does not try to explain why a
information for both companies Company info given separately particular component may be
indicating lack of teamwork/did prominent.
not follow instructions.
12
ACM Research Project rubric – each section has equal weighting
40
Outstanding (High Distinction) Above satisfactory Satisfactory (Pass) Unsatisfactory (Fail)
(Credit/Distinction)
1 Time line A well thought out and presented A thoughtful plan and some A simple plan but no evidence or Little evidence that this work was
plan evidence that students met and record of what they did planned or that students worked to
Clear objectives with milestones tried to work to the plan a plan
and who is responsible for what
Evidence that students met and
kept a record of what they did
2. Overview Provides accurate and complete Provides accurate information with Provides information but shows Provides very basic/brief
and information. some elaboration on details such evidence of cut and paste and may information;
background Shows evidence of further research as what the main business is, e.g. not have written it in own words. Answers in dot points; and/or
(i.e. looked in more than the not just retail or manufacturing but Does not provide overview of both
annual report) details on what they sell or Written in own words but only just companies.
Well written and explained. manufacture, where they operate gives an overview – lack of
Logical and concise. etc. thought/evidence – could do
better.
A good summary.
3. Financial Provides accurate information to Provides statements as required. Provides statements as required. Provides extra information, not just
Statements all financial statements, well the required section (i.e. screen
labeled and easy to read. Information highlighted. Information highlighted but shot of whole screen).
Income unclear.
Statement Structure follow statements. Structure shown. Unable to read reports.
Structure shown but unclear.
Balance sheet Each statement on a new page. Required information is not
The above may be given but not highlighted in different colors.
Changes in All in the correct order. following the statements so it is
equity difficult to check against the Structure not clearly shown for all
statement. statements.
Cash Flows
Did not follow instructions (this
includes presentation of the order
of statements)
11