Accounting and Financial Management 1B

Accounting and Financial Management 1B Order Description Questions – Select one of the following companies 1. AGL Energy Ltd 2. Billabong International Ltd 3. Cochlear Ltd 4. Woolworths 5. Myer Answer Questions from (1) to (4) (1) Describe the policy choices made by the company in relation to Property, plant and equipment (maximum 200 words) (1 mark). (2) Explain possible reasons for the choices you observe for the property plant and equipment classes with discussion of other measurement methods (maximum 600 words) (3 marks). (3) Consider the news article relevant only to your selected company. Is it likely that the situation described will result in impairment? Provide an analysis as (i) the likelihood the impairment will occur; and (ii) assume that the impairment does occur discuss the impact on the company’s valuation with supporting calculations. (Maximum 900 words) (9 marks). AGL Energy: https://www.mywealth.commbank.com.au/companies/agl-flags-asset-sell-offs- amid--435m-impairment-news20150706 Billabong: https://www.smh.com.au/business/billabong-gains-traction-but-has-long-way-to-go- says-ceo-neil-fiske-20150225-13p3e6.html Cochlear: https://www.fool.com.au/2015/10/09/are-cochlear-limited-shares-worth-100/ Myer: https://www.smh.com.au/business/myer-appoints-former-toll-holdings-chief-financial- officer-grant-devonport-20150609-ghkdc6.html Woolworths: https://www.abc.net.au/news/2014-08-12/woolworthss-hardware-losses-blow-out-to- 169m/5665580 (4) From the news article relevant to your selected company discuss (i) whether the item described is a liability through the essential characteristics and recognition criteria within the Conceptual Framework (maximum 200 words) (1 mark); (ii) should a liability, provision or contingent liability be recorded at the time of writing (maximum 500 words) (3 marks); "at the time of writing" : AGL article 30/09/2015 Billabong: 8/09/2015 Cochlear: 24/01/2014 Myer: 26/03/2015 Woolworths: 19/06/2015 (iii) if a liability was recorded what would be the impact on the company’s valuation at the time of the article with supporting calculations (maximum 900 words) (8 marks). AGL Energy: https://www.smh.com.au/business/energy/agl-energy-deflects-climate-change-heat- ahead-of-agm-20150928-gjwxl7.html Billabong: https://www.skynews.com.au/business/business/national/2015/09/08/billabong-director- resigns.html Cochlear: https://www.bloomberg.com/news/articles/2014-01-24/cochlear-loses-131-2-million- verdict-in-patent-lawsuit Myer: https://www.abc.net.au/news/2015-03-26/myer-sued-by-shareholder-over-surprise-profit- slump/6349374 Woolworths: https://www.smh.com.au/business/retail/recall-of-faulty-heaters-from-woolworths- safeway-and-big-w-20150618-ghrvoh.html