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In: Business and Management

Submitted By pragya14
Words 2708
Pages 11
| Amcor Limited | 22743 Business Valuation and Financial Analysis | | | |


group assignment 2 | Muhammad Farhan | 11340041 | Zahid Mahmood | 11473485 |

Table of Contents Executive Summary 3 Accounting Analysis 3 1. Accounting Policies and Standards 3 Revenue Recognition (AASB 118): 3 Property, Plant & Equipment (PPE) (AASB 116): 3 Intangible Assets (AASB 3, AASB 138): 4 Borrowing Costs (AASB 123): 4 2. Flexibility in Selecting the Key Accounting Policies 4 3. Accounting Strategy Employed by Management & Incentives 5 4. Quality of Disclosure: 5 5. Potential Accounting Numbers and Undoing Distortions 6 Financial Analysis 6

Executive Summary
Having considered the economic environment and an in-depth analysis of Amcor’s industry in the initial report, this report focuses on the accounting and financial analysis to help better understand company’s accounting policies and the underlying financials. With the aid of reformatted financial statements and detailed ratio analysis, the report critically analyses the scope of flexibility available to the management with respect to the key accounting policies used. The scope of flexibility impacts the management’s strategy and incentives. The report identifies the opportunities and incentives available to the management.
The annual report of a business is a platform where the management communicates with the stakeholders. To assess the usefulness of the report to the stakeholders, quality of disclosure has analyzed and notes to the financial statements have been used to undo distortions and identify questionable accounting numbers. A brief snapshot of the recent financial press activity has been provided towards the end.
Accounting Analysis
1. Accounting Policies and Standards
The emergence and dominance of developing markets is a key element for profits...

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