Case Study Of Contemporary Issues In Accounting Report

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 analysis on the Origin Energy an
Australian Company that is operating as one of the leading energy provider in Australia. The
financial analysis of the company was done with the view of analyzing the various factors that
have caused the changes in the share price of the company for a two-year of trend period. The
changes observed in the share price of the company were primarily due to the changes in the
internal and external factors that have caused the reason behind such large changes. The trend
period taken into consideration for the company was for a sum of two years for the company
from the period 1st August 2017 to 1st August 2019. The reasons outlined primarily were due to
the market factors like economic slowdown and fall in oil prices and business factors write down
in the value of assets that affected the large changes in the share price of the company.

CONTEMPORARY ISSUES IN ACCOUNTING2
Table of Contents
Introduction......................................................................................................................................3
Financial Analysis...........................................................................................................................3
Insider’s Buying More Shares.....................................................................................................3
Asset Sale by Origin Energy........................................................................................................4
Macro Factors Affecting Stock’s Volatility................................................................................5
Investments in Australia Pacific LNG.........................................................................................6
Trade War....................................................................................................................................7
Conclusion.......................................................................................................................................7
Recommendations............................................................................................................................8
References........................................................................................................................................9
Appendix........................................................................................................................................11
1) Origin Energy Share Price Data.........................................................................................11
1) Graphical Presentation of Share Price................................................................................12

CONTEMPORARY ISSUES IN ACCOUNTING3
Introduction
The Origin Energy an Australian Public Listed Energy Company with its headquarters in
Sydney. The company is listed in the Australian Stock Exchange with its ticker symbol as ORG.
The share price of the company has been quite volatile in the trend period analyzed for the
company whereby there were various factors that affected the movement or have been the key
reason for the purpose of wide increase in the volatility of the stock. The reasons outlined
primarily were due to the market factors and business factors that affected the large changes in
the share price of the company (Finance.yahoo.com 2019).
Financial Analysis
Insider’s Buying More Shares
In the time period of June-August 2018, the share price of Origin Energy Company have
increased significantly and the same has been due to the increased investment in the shares of
company by the insiders of the company. Insiders of the company have brought around 9.8
million shares of the company which indeed have been the key reason for a hike in the share
price of the company in the three month of time period. The graph below indicated with the
green signal reflects the additional amount of share purchased by insiders and instutional
investors that are associated with the company (St 2018). There are high expectations when seen
from the analysts point of view in the view approach of this company in terms of growth of
revenue and the associated profitability of the company. Developments done by the company in
delivering better energy solutions and better market penetration of the company are the key bets
on which analysts are extimating the future growth of the company in the energy sector
(Markets.ft.com 2019).