AGL-ACCOUNTING ANALYSIS AND FINANCIAL ANALYSIS
1. Accounting Analysis Assess
(The degree to which the firm’s accounting reflects the underlying business reality. Identify accounting distortions and evaluate their impact on profits and the sustainability of profits.)
1.1. Step 1: Indentify Key Accounting Policies
1.2. Step 2: Assess Accounting Flexibility
& Step 3: Evaluate Accounting Strategy
1.3. Step 4: Evaluate The Quality of Disclosure
1.4. Step 5: Identify Potential Red Flags
& Step 6: Solution to Accounting Distortion
2. Financial Analysis
(Use ratio analysis and cash flow analysis to evaluate the current and past performance of the business and assess its sustainability.)
2.1. Ratio Analysis
2.1.1. Return on Equity (ROE)
2.1.2. Operating Return on Assets (OROA)
2.1.3. Current Ratio (CR)
2.1.4. Asset Turnover (ATO)
2.1.5. Dividend Payout Ratio (DPO)
2.2. Cash Flow Analysis…
3.3. Appendices
Appendix 1: Key Accounting Policies of AGL Energy Limited
Appendix 2: Share of Global Surfwear Company (AGL Energy Limited)
Appendix 3: Reformatted Balance Sheet
Appendix 4: Reformatted Income Statement
Appendix 5: Free Cash Flow (FCF)
Appendix 6: Ratios
The project write-up should be a readily comprehensible and condensed report on your work (i.e., not a detailed compilation of all the information you collected).