Accounting Assignment - Financial Analysis Report

Running head: ACCOUNTING FINANCIAL ANALYSIS REPORT
Accounting Financial Analysis Report
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1ACCOUNTING FINANCIAL ANALYSIS REPORT
Executive Summary:
The current report aims to evaluate the various recognition criteria of the two selected
mining companies of Australia, which are Evolution Mining and Orica Limited. It has been
found that both Evolution Mining and Orica are disclosing their respective obligations in
accordance with the prevailing laws and legislations of the nation. Both the organisations have
similar revenue and liabilities recognition criteria; however, the only difference is observed in
case of asset recognition. Thus, it is recommended to Orica to realise assets at fair value, as it
provides a true and fair estimate of a particular asset or a class of assets.

2ACCOUNTING FINANCIAL ANALYSIS REPORT
Table of Contents
1. Introduction of the two selected companies:...............................................................................3
1.1 Names of the companies:.......................................................................................................3
1.2 Establishment year:................................................................................................................3
1.3 Main activities:......................................................................................................................3
1.4 Products or services:..............................................................................................................4
1.5 Organisational structure:........................................................................................................4
1.6 Business achievement:...........................................................................................................5
2. Comparison and contrast of revenue recognition of Evolution Mining and Orica:....................5
3. Comparison and contrast of asset recognition of Evolution Mining and Orica:.........................6
4. Comparison and contrast of liabilities recognition of Evolution Mining and Orica:..................8
5. Summary of interesting findings and recommendations:............................................................9
References:....................................................................................................................................10

3ACCOUNTING FINANCIAL ANALYSIS REPORT
1. Introduction of the two selected companies:
1.1 Names of the companies:
The two mining companies of Australia that have been selected in order to fit the purpose
of this report include Evolution Mining and Orica Limited.
1.2 Establishment year:
Evolution Mining is established in the year 1998, while Orica Limited is established in
the year 1928, in which it was named as “Imperial Chemical Industries of Australia and New
Zealand (ICIANZ)”. On 2nd February 1998, the organisation has changed its name to Orica
Limited.
1.3 Main activities:
Orica Limited is a multinational organisation of Australia and it is one of the largest
global provider of blasting systems and commercial explosives to the quarrying, mining,
construction and oil and gas markets. In addition, it is involved in supplying sodium cyanide for
extraction of gold and an expert provider of ground support services related to tunnelling and
mining (Orica.com 2018).
Evolution Mining Limited is a gold exploration firm having its business operations in
Western Australia. The focus of the organisation is on carrying out its projects safely and
effectively along with developing the same to its full potential. Moreover, it has economic
interest in Ernest Henry in Queensland, which would provide 100% of future gold and 30% of
future silver and copper (Evolutionmining.com.au 2018).