Reference no: EM132356640

Financial Reporting Assignment -

Objective of the report - This task requires you to prepare a report to evaluate and comment on information related to hedge provided in the annual report of a company listed on the Australian Stock Exchange (ASX). Your comments or evaluation should comply with the requirements of relevant Australian Accounting Standards (AASBs).

The report should answer the following questions:

1) Explain the concept of a hedge.

2) Give an example of a hedge presented in the annual report of the chosen company, and explain the qualifying criteria of hedge accounting adopted by the chosen company.

3) Discuss the advantages or disadvantages of hedge accounting for the chosen company.

4) Evaluate the measurement of hedging instrument and hedged item(s) made by the chosen company.

5) Demonstration of effective communication and presentation.

Assessment criteria - The quality of the report will be assessed based on the following four areas:

1) Demonstrate and identify the accounting concepts applied.

2) Use paragraphs from related Australian Accounting Standards as guidelines to support your discussion.

3) Provide examples or evidence from the annual report or other sources to illustrate the concept(s) or principle(s) discussed.

4) Demonstrate effective communication, referencing, logical presentation and integrated evaluation.

Special instructions of the report:

• The report should include an executive summary, a body of contents covering points listed above, and a reference list.
• If there are any references used in the report, the references should follow Harvard Referencing Style. The reference list should provide all materials supporting the report including a web link of the annual report of the chosen company.
• You should provide relevant paragraphs of AASBs or other evidence to support your presentation, such as:
• AASB Conceptual Framework,
• AASB 7 Financial Instruments: Disclosures
• AASB 9 Financial Instruments
• AASB 101 Presentation of Financial Statements
• AASB 132 Financial Instruments: Presentation
• AASB 139 Financial Instruments: Recognition and Measurement
• You can find some interesting journal papers regarding hedge accounting, for example:
• Hedge accounting and its influence on financial hedging: when the tail wags the dog, by Glaum, M & Klocker, A., 2011,Accounting and Business Research, Vol. 41 (5), p. 459-489.
• Other references used in the report such as the annual report of your chosen company should be included in the reference list. Remember to provide a link to the annual report in the reference list.
• Each student should choose a company that is listed on the Australian Stock Exchange (ASX). Find its annual reports for 2017/2018 financial year. Remember to use a complete annual report, not a concise financial report or a half-year financial report.
• You must reserve your company by adding a post on 'Discussion Board' under 'Reserve a company here'. Write the name and code of the chosen company in the subject line of your post. If you add the company name in the message and NOT in the subject line, then the reservation is void because it will not be readily visible to others.
• To ensure your choice of a company does not duplicate one already chosen by other student, they will be allocated on a first come, first served basis.
• If there are any references used in the report, the references should follow Harvard Referencing Style. The reference list should provide all materials supporting the report including a web link of the annual report of the chosen company.