2013 Accounting and Financial Analysis Duc TRAN 11190687 Hoang


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I need to conduct a reformatting and ratio analysis so that I can do an accounting and financial analysis, forecasting and valuation of Tabcorp Holdings Limited. Need help with this. I also attached a sample that composed by other student on AGL. AGL FSA part 2 Final.pdf 2013 Accounting and Financial Analysis Duc TRAN 11190687 Hoang Duc TRUONG 11287923 Thi Tuyet Hoa PHAM 11275637 Thi Ngoc Bich HA 11199508 Kevin YEUNG 11298609 Table of contents 1. Accounting Analysis ……………………………………………………………………………….3 1.1 Principal Accounting Policies ………………………………………………………………………………..3 1.2 Assess Accounting Flexibility ……………………………………………………………………………….3 1.3 Evaluate accounting strategy ……………………………………………………………………………….3 1.4 Evaluate the quality of disclosure ……………………………………………………………………………….4 1.5 Identify potential red flags ……………………………………………………………………………….4 1.6 Undo any accounting distortions ……………………………………………………………………………….4 2. Ratio Analysis ……………………………………………………………………………….4 2.1 Overall Profitability ……………………………………………………………………………….4 2.1.1. Return On Equity (ROE) ……………………………………………………………………………….4 2.1.2 Profit Margin (PM) ……………………………………………………………………………….4 2.1.3 ATO (Asset Turnover) ……………………………………………………………………………….4 2.2 Evaluating Financial Management ……………………………………………………………………………….5 2.2.1 Current ratio ……………………………………………………………………………….5 2.2.2 Financial leverage ratio ……………………………………………………………………………….6 2.3 Assessing sustainable Growth Rate ……………………………………………………………………………….6 2.3.1 Dividend payout ratio ……………………………………………………………………………….6 2.3.2 Sustainable growth rate ……………………………………………………………………………….7 3. Cash Flow Statement ………………………………………………………………………………..8 Appendices ………….. ……………………………………………………………………………….8 References ……………………………………………………………………………………………13 2 1. Accounting Analysis 1.1 Principal Accounting Policies Revenue Recognition In accordance with AASB 118 Revenue, AGL measures and recognises revenue at the fair value of the amount to the extent it is probable that the economic benefits will flow to the consolidated entity and the revenue can be reliably measured. Revenues from gas and electricity services supplied are recognised once the gas and electricity has been delivered to the customer. Revenues from the provision of services, including revenue from construction contracts, where stage of completion for services cannot be reliably measured, will be recognised based on percentage of completion method only to the extent of expenses incurred. Intangible Assets Intangible assets accounted for approximately 29.9% of AGL’s non-current assets. In accordance with AASB 138, intangible assets are recognised at fair value at the date of acquisition and then carried at cost less an

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