...required to make an investment recommendation to a fund manager. The fund manger wishes to add a stock to a diversified portfolio. The investment manager has a strategy of maximizing investor returns over the long term. Consistent with the course objectives, the project is an essential part of the course and aimed at developing your understanding of, and practical skills in financial statement analysis and valuation. It is also designed to enhance teamwork, and analytical and communication skills. To maximize the benefits of the project, you are required to progressively complete the project as the techniques are examined in the course. The project comprises two components: (1) an industry and company analysis, (2) a detailed project report, and Getting Started (Weeks 1-2) By the end of Week 2 you are required to: (1) Form groups of ideally 4 or 5 members. For part-time students who have difficulties in finding common free time for group meetings, groups of 2 or 3 are acceptable. (2) Select a company that is listed on the Australian Securities Exchange (ASX). Your companies must have at least three years of annual reports available – it is your responsibility to pick a company with the required information available); (3) Enroll your group members online through Blackboard. (4) Obtain and commence analysis of the financial reports of your chosen company. Progressive Analysis (Weeks 3-12) You need to progressively analyse your selected company using the strategic, accounting, financial...
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...ACCT5910 Business Analysis and Valuation Summary of Case This case is talking about Harnischfeger Corporation, leading producer of Construction Equipment, Mining and Electrical Equipment, Material Handling Equipment and Harnischfeger Engineer, based in Milwaukee, Wisconsin. The main topic of this case is the accounting policy changes after financial difficulties and its effect on financial reporting and the motive of these changes. Questions 1. Identify all accounting policy changes and accounting estimates that Harnischfeger made during 1984. Estimate, as accurately as possible, the effect of these on the company’s 1984 reported profit. Harnischfeger made the following accounting policy changes and accounting estimates during the year 1984. - There was a change in the recognition of some types of sales. This resulted in a change in sales calculation. Harnischfeger incorporated products purchased from Kobe Steel, which were re-sold by the company, into its net sales. This increased aggregate sales and cost of sales by $28 million. - There was a change in the fiscal year for some foreign subsidiaries. - There was a change in the depreciation methods on assets. The depreciation policy for financial reporting purposes was changed to a straight-line method from a principally accelerated method. - There was a change in the use of last-in, first-out (LIFO) liquidation in inventory valuation. - There was a change in the allowance for doubtful accounts. ...
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