Compare the 2015 and 2016 annual reports

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Reference no: EM131634330 , Length: word count:2000

Topic: The Role of the Continuous Disclosure Framework

Disclosing entities are regulated by the Corporations Act (2001), Accounting Standards and ASX requirements. The continuous disclosure requirements in ASX LR 3.1 require timely reporting to the ASX of significant events and financial information that is likely to impact the price of the entity's securities. ASX LR 3.1 contains an overriding general requirement to disclose information that a reasonable person would expect to have a material effect on price, however the rule includes the following exceptions:
- It would breach the law to disclose information
- The information relates to an incomplete proposal or negotiation
- The information comprises matters of supposition or is insufficiently definite to warrant disclosure
- Information is generated for internal management of the company
- Information is a trade secret
- A reasonable person would not expect the information to be disclosed
- The information is confidential and ASX has not formed a view that has ceased to be confidential.

Immediate notification to the ASX is required when particular instances occur (these are listed in LR 3.1) and includes:
- The fact that the entity's earnings will be materially different from market expectations.

Part I(guide 500 words)

Using the consolidated financial statements of Surfstitch Ltd, comparing the 2015 and 2016 Annual Reports comment on:

1. The recent financial predicament facing Surfstitch Ltd (1 paragraph).
2. The 2015 Goodwill, The Investment in Subsidiary, the cash position and
3. The 2016 Profit and Loss Statement with particular reference to Impairment Costs, Selling & Distribution and Administrative Expenses.
4. Based on your analysis, and BEFORE knowledge of the recent share price decline and share trading halt, would you have recommended to your clients to buy, hold or sell Surfstitch shares? Why?

Part II(guide 1500 words)

After reading the attached documents, newspaper articles and research papers, answer the following question:

Why is it necessary to have a continuous reporting regime for disclosure entities and is it effective?

Do you agree? Why or why not?

Note, there is not one correct answer to this question. You will need to commence your research using the above three articles, and then supplement that with your own research. Check the marking scheme for further guidance.

Required:
You are to form into groups of two for the submission of this assignment. Assignments undertaken by an individual (1) student will not be accepted for marking.

Reference no: EM131634330

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Reviews

len1634330

9/9/2017 1:53:45 AM

Student No: Name: Assessment Criteria and Assignment Structure Assessment Structure (marks) Marks Excellent Very Good Good Average Marginal Poor Very Poor Part I(15 marks) 1. Questions 1 (3 marks) 2. Question 2 (3 marks) 3. Question 3(3 marks) 4. Question 4 (6 marks) Part II(25 marks) 1. Research question: report format; abstract, intro, literature review and conclusion(16 marks) 2. English expression, coherence, grammar and spelling (5 marks) 3. Evidence of the group work-meeting logs (4 marks) TOTAL

len1634330

9/9/2017 1:53:23 AM

• You cannot withdraw an assignment from Turnitin after the due date). • Late submission without extension approval from the Unit Coordinators and local lecturers will be penalised 2 (out of 20) marks per day. Do not submit any assessable task by slipping it under the door of your lecturer’s or tutor’s office. • No Extension will be granted unless supported by appropriate documentation prior to the due date. An application for an extension must be in writing and must usethe appropriate form

len1634330

9/9/2017 1:53:14 AM

• Where a group member is not cooperating or contributing to the group and the team has made all efforts to resolve the issue, the team must inform the tutor and unit coordinator/s immediately via email. Where a group does not report this matter immediately, it will not be entertained later on, especially before the due date of the assignment. The defaulting member will be given a warning and should the member continue to default, the group will continue without the defaulting member and the defaulting member will receive zero for the task. Referencing and style • Assignment must be typed using Word document and double-spacedand Times New Roman with 12 font size • The required referencing style is Harvard (Please visit VU library for examples of Harvard Referencing Style at http://guides.library.vu.edu.au/Harvard). Essays not using the required referencing style or not showing in-text and end of text references will be returned unmarked. • Only one member must submit their assignment through Turnitin and attachthe Turnitin submission report with your assignment. Your assignment will not be marked without a Turnitin submission report.

len1634330

9/9/2017 1:53:07 AM

• It is YOUR responsibility to form teams, thus swapping contact details and arranging regular progress meetings is essential. Remember, once a team is formed, it is up to you and your fellow team members to maintain team discipline.All group members are equally responsible for the submission of the assignment. • Students must meet at least once every fortnight. Meeting records must be attached at the end of your report. Marks will be allocated for your meeting logs. A suggested meeting log is attached.

len1634330

9/9/2017 1:52:59 AM

Approximate word Length:2000 words (marks will be deducted for assignments exceeding 2100 words excluding the reference list). Marking: This assignment is worth 20% and will be scored out of 40 marks. The assignment is a TEAM assignment and therefore scores will be applied to all members of a team without distinction. You have to submit TWO copies of your report: • Only single copy should be submitted to Turnitin via a link on VU Collaborate. The report should be submitted ONLY by one team member or team leader. • The second (hard copy) of the report should be submitted to yourlecturer. Penalty for late assignments: 2 marks per workingday (weekday) and no mark will be awarded after five days.

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