Reference no: EM132971300

You are required to collect annual reports of Monno Fabrics Limited company for the period 2019-2020. You should take single set of financial statements, not consolidated statements for the group of companies.

• From the annual reports you will be required to conduct an analysis of the financial statements with emphasis on the balance sheet liabilities and equity section. This analysis is to be carried out based on your knowledge from your Financial Accounting lessons.
• While analyzing the balance sheet the following the area needs to be addressed.

Problem 1) Make a list of IAS and IFRS as adopted by Bangladesh. Make a disclosure checklist of relevant IAS/ IFRS as applicable for your studied company.

Problem 2) According to IAS 1, what are the components of financial statements? Make a disclosure checklist of your studied company.

Problem 3) According to International Accounting Standard-1 (IAS-1) what are the minimum line items that should be presented on the face of the statement of financial position (balance sheet)? Make a disclosure checklist and compare the level of disclosure with your studied companies.

Problem 4) According to IAS 37, what are criteria for recognizing and measuring of provisions, contingent assets, and contingent liabilities? Did your studied company report these in its annual reports?

Problem 5) According to IAS 18, what are the criteria of revenue recognition? How did your company report this in the annual report?

Problem 6) Compute Current ratio, quick ratio, and net working capital of the companies for the studied period. Make comment regarding the liquidity position of the company.

Problem 7) Compute debt to asset ratio, long-term debt to asset ratio of the studied company for the studied year and comment on the solvency position of the company.

Problem 8) What is the composition of the shareholders equity section of your studied company? Calculate earnings per share and diluted earnings per share of the company for the studied period. Compute P/E ratio (go to DSE website and search for the market price of the share as on the reporting date)

Problem 9) Conclude, by providing final comments to your analysis of the ratios calculated above.