This report provides a comparative accounting analysis of Telstra Group and TPG Telecom Ltd., focusing on their depreciation policies, inventory valuation methods, and treatment of intangible assets. The analysis examines the straight-line depreciation method used by both companies, the useful lives assigned to various asset classes, and the impact of depreciation on financial profitability. It then delves into inventory valuation, comparing Telstra's use of weighted average cost and net realizable value with TPG's similar approach. The report also identifies and analyzes the intangibles of both companies, including goodwill, internally generated intangibles, and acquired intangibles, highlighting the differences in valuation and amortization techniques. Finally, the report offers recommendations for improving the reporting practices of both companies, particularly emphasizing the need for greater transparency and consistency in Telstra's accounting policies. The report is based on the 2017 annual reports of both companies and is intended for MBA711 Accounting and Analysis for Managers.
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