Contemporary Issues in Accounting Assignment 2022

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
Name of the Student:
Name of the University:
Author’s Note:

CONTEMPORARY ISSUES IN ACCOUNTING1
Executive Summary
The aim of the assignment is to conduct a financial share price analysis on the Echoes Resources
Limited which is listed in the Australian Stock Exchange with its ticker symbol as EAR. The
company is into the Metal and Mining Sector whereby the operations of the company is into the
specified business activities. The share price of the company is analyzed based on the corporate
news and actions that might have affected the overall share price performance. The share price
analysis was done for a two-year of time period where relevant changes in the share price from
1st August 2017 to 1st August 2019 was taken into consideration for the analysis. The share price
of the company can be well affected due to the volatile macro-economic conditions and changing
business conditions that can cause volatility in the share price of the company. There would be
certain recommendations that were given the fact that the company materially forecast the
changing macro-economic condition and the associated factors that are affecting and influencing
the overall operations of the company.

CONTEMPORARY ISSUES IN ACCOUNTING2
Table of Contents
Introduction......................................................................................................................................3
Analysis...........................................................................................................................................3
Drop in Profitability and Business Operations............................................................................3
Positive Market Sentiments and Favorable Business Conditions................................................5
Yandal Gold Project....................................................................................................................6
Competitive Advantage...............................................................................................................7
Conclusion.......................................................................................................................................8
Recommendations............................................................................................................................8
References........................................................................................................................................9
Appendix........................................................................................................................................11
1) Share Price Data..............................................................................................................11
2) Graphical Representation of Share Price........................................................................12

CONTEMPORARY ISSUES IN ACCOUNTING3
Introduction
The Eco Resources an Australian Mining Company which is listed in the Australian
Stock Exchange having a gold business in a large and highly prospective ground position in the
Eastern Goldfields of Western Australia. The share price movement of the company can be well
captured and explained within the context of various news and business factors that have
impacted the price movement in this period (Proactiveinvestors UK 2019). Variance in the
earnings of the revenue of the company and the consistent increase in the debt funding of the
company has been some of the key points by which the overall financial risk of the company has
increased. The share price of the company can be well affected due to the volatile macro-
economic conditions and changing business conditions that can cause volatility in the share price
of the company. There would be certain recommendations that were given the fact that the
company materially forecast the changing macro-economic condition and the associated factors
that are affecting and influencing the overall operations of the company (Hotcopper.com.au
2019).
Analysis
Drop in Profitability and Business Operations
Companies that do not deliver successful returns in the form of increased business
activities and profitability in the due course of operations are definitely penalized by the
shareholders of the company in the form of falling share price. The share price of Eco Resources
has been primarily affected due to the fall in the revenue earned by company where the company
has earned very low amount of revenue in the twelve month of time frame (Proactiveinvestors