FIAC214 - Financial Accounting Assignment
Added on 2019-10-31
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Running head: FINANCIAL ACCOUNTINGFinancial AccountingName of the Student:Name of the University:Author’s Note:Course ID:
1FINANCIAL ACCOUNTINGTable of Contents1. Brief of the selected organisation:...............................................................................................22. Sections dominating the report:...................................................................................................23. Names of the four main directors and summary of the report:....................................................24. Auditors, their opinion and summary of the auditors’ report:.....................................................35. Increase or decrease in sales:.......................................................................................................36. Net cash inflow (outflow) from operating activities and change from the previous year:..........47. Retained profit, loans and debentures:.........................................................................................48. Ratio analysis for commenting on the financial health:..............................................................48.1 Profitability ratios:.................................................................................................................48.2 Liquidity ratios:.....................................................................................................................58.3 Asset turnover ratio:..............................................................................................................58.4 Leverage ratios:.....................................................................................................................5References:......................................................................................................................................6Appendices:.....................................................................................................................................7
2FINANCIAL ACCOUNTING1. Brief of the selected organisation:The organisation that has been selected to fit the purpose of this assignment is TelstraCorporation Limited. The organisation has been previously known as Telecom, which hasmerged with the Overseas Telecommunications Operation, firstly cross-border in 1993 anddomestically in 1995. Telstra has been privatised in three different stages “T1 ($3.30)”, “T2($7.40)” and “T3 ($3.60)” in 1997, 1999 and 2006 respectively. In T1, 1/3rd of the governmentshares have been sold to Telstra for $14 billion, which has helped the organisation to list on theAustralian Stock Exchange (ASX). In 1999, additional 16% of the organisational shares had been sold to the public; thus,leaving the Australian government with 51% ownership. In 2006, there has been announcementof “T3”, which has minimised the ownership of the government to 17%. The organisation hasbeen engaged in operating and building telecommunications networks along with markets voice,internet access, pay television and other entertainment services and products. The year underreview for this assignment is 2017. 2. Sections dominating the report:The major sections that dominate the annual report of Telstra Corporation Limitedinclude the financial reports (income statement, balance sheet statement and cash flowstatement), notes to the accounting policies and estimates along with segmental disclosures. 3. Names of the four main directors and summary of the report:The four main directors of Telstra Corporation Limited constitute of Andrew Penn(CEO), John Mullen (Chairman), Peter R. Heart (Chairman of the Remuneration Committee and
3FINANCIAL ACCOUNTINGmember of the Nomination Committee) and Nora L. Scheinkestel (Chairman of the Audit andRisk Committee). According to the report of the directors, the overall income of the organisationhas been raised by 4.3% in 2017 to $28.2 billion along with increase in EBITDA by 2% to $10.7billion. The main priority of the organisation is to enhance the experience of the customers andthe Net Promoter Score, which is the main customer measure, has recovered effectively in thesecond half of 2017. Finally, the organisation has developed an effective audit and riskcommittee to deal with the unanticipated risks along with maintaining transparency in thefinancial statement disclosures. 4. Auditors, their opinion and summary of the auditors’ report:The organisation has formed an effective internal committee and the external auditor ofthe firm has been identified as Ernst and Young. According to the opinion of the external auditor,the financial statements of Telstra have been prepared in compliance with the Corporations Act2001, as it provides a fair and true revelation of the consolidated financial performance andfinancial position of the organisation. In addition, it complies with AASB and CorporationsRegulations, 2001. 5. Increase or decrease in sales:According to the annual report of the organisation, it has been found that the salesrevenue of the organisation has increased from $25,834 million in 2016 to $25,912 million in2017. Hence, the sales of the organisation have increased marginally by 0.30% in 2017. Thepossible reason behind such changes is the increasing demand in the market along with betterquality services provided on the part of Telstra Corporation Limited.
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