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What accounting policy changes have each company changed in 2017 and 2020

Task: You may complete internet searches to identify any other information they may be relevant to responding to the questions posed. I will provide annual reports and the questions – ANSWER as questions – This IS NOT an essay. There are NO Yes/No questions – you need to provide an explanation, often of your views. 1. What type of business are each of the companies involved in? 2.What is the total of sales revenue, gross profit and net profit (before tax) for each of the companies in each of the years? How has this changed? Can you identify any reasons why any change may have happened? How much tax do they pay? Are they multinational companies? 3.What are the two largest expense and revenue items for each of the companies? Did you find the information provided easy to find? Do you find the notes to the accounts confusing? 4.What were net assets for each of the companies in each of the years? Did the extent of owner’s funds change in the two time periods? If so, what reasons can you suggest might have contributed to this? 5.What face statements are prepared by each company? What information does each of the face statements convey? Is there anything you find confusing? If you were asked to prepare the trading statement for each company are you provided with sufficient information? Are there any differences between the financial statements prepared by each company? If there are any identify the differences. 6.What accounting policy changes have each company changed in 2017 and 2020? Why was this, if changes were made? 7.Were there any asset revaluations and/or asset impairment decisions by either or both companies in either time period. Do they provide information to help understand the decision making if either happened? Explain. 8.Sustainability has become an important agenda item for many companies – what can your report for each of these companies? Has this changed between 2017 and 2020? 9.Identify a mining, chemical or other company you believe may have been under some pressure to address environmental issues, and suggest whether you believe they address the sustainability agenda more thoroughly than either JB Hi Fi or Harvey Norman. Do you think any differences in behaviour are reasonable, assuming there are differences. 10.In undertaking a brief financial analysis of the 2020 financial information for each company write a brief report for each in layman’s terms. Then write a brief report of the same length discussing the sustainability and corporate governance information reported by each company. Indicate if this is adequate.

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