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7702AFE: Dick Smith - ASX Corporate Governance - Accounting Assignment Help
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Internal Code : 1AAHAB
Task: 2
1. Now construct a common-size balance sheet (Consolidated Statement of Financial Position) for Dick Smith’s 2015 Balance Sheet and discuss one serious “red flag” (serious warning sign) from your analysis.
2. Using the Consolidated Statement of Cash Flows (Cash Flow Statement) for Dick Smith’s 2015 financial year, what 2 items of additional useful information is presented that would support your discussion in Part A (b).
Task: 3
Refer to ASX Corporate Governance Principles & Recommendations 3 rd edition.
On the release of the 2015 Annual Report as at 30 June 2015, there is no obvious indication to a non-professional investor that Dick Smith’s will go into liquidation within six months. For example, profit is positive.
However, with the benefit of hindsight, the management could be construed to have acted “unethically”.
a. Structure the Board to add value
i. Describe in detail the board structure of Dick Smith for the 2015 financial year. Discuss in detail the makeup of the different committees of the Board of Dick Smith. Your description should include a consideration of the qualifications of the Board; how many NED’s; and a comparison with ASX requirements.
ii. Using “a sceptical view” could Dick Smith have enhanced the structure of the Board and Management under this principle? Explain.
iii. What could have been the impact of these changes on everyday operations?
b. Safeguard integrity in corporate reporting
Examine in detail the recommendations of this principle and ascertain, using “a sceptical view” whether this principle was in fact implemented. Provide evidence from the Dick Smith 2015 Annual Report.
c. Recognise and manage risk
Examine in detail the recommendations of this principle and ascertain, using “a sceptical view” whether an appropriate risk management framework had been established. Provide evidence from the Dick Smith 2015 Annual Report.
d. Act ethically and responsibly
In your opinion should the board of directors have discussed the negative cash flow from operations at the Annual General Meeting in 2015. You can see the major points covered at the AGM at this link. In particular, the financial highlights on page 5 provide no indication of this issue. Discuss. Provide evidence to support your discussion from the Dick Smith 2015 Annual Report and the ASX Corporate Governance Principles & Recommendations.
Accounting Assignment Help
Task: 1 Refer to the Annual Report of Dick Smith Holdings 2015 (hereafter Dick Smith’s 2015) And to the ASX Corporate Governance Council to answer the following questions. On 5 January 2016 it was announced that electronics retailer Dick Smith has gone into receivership, with Ferrier Hodgson appointed to run the firm. Using the financial statements, Consolidated Statement of Profit or Loss and Other Comprehensive Income (Income Statement), Consolidated Statement of Financial Position (Balance Sheet): 1. Complete the Table below and calculate all ratios indicated for 2015 (show workings and round all items to two decimal places). Use the figures from pages 52, 53 and 55 ie, the figures on the Consolidated Statement of Profit or Loss and Other Comprehensive Income, the Consolidated Statement of Financial Position and the Consolidated Statement of Cash Flows. 2. Discuss two ratios that could provide an indication that Dick Smith would go into receivership on 5 January 2016. a) Ratio Table—must be presented in this template
Task: 2
1. Now construct a common-size balance sheet (Consolidated Statement of Financial Position) for Dick Smith’s 2015 Balance Sheet and discuss one serious “red flag” (serious warning sign) from your analysis.
2. Using the Consolidated Statement of Cash Flows (Cash Flow Statement) for Dick Smith’s 2015 financial year, what 2 items of additional useful information is presented that would support your discussion in Part A (b).
Task: 3
Refer to ASX Corporate Governance Principles & Recommendations 3 rd edition.
On the release of the 2015 Annual Report as at 30 June 2015, there is no obvious indication to a non-professional investor that Dick Smith’s will go into liquidation within six months. For example, profit is positive.
However, with the benefit of hindsight, the management could be construed to have acted “unethically”.
a. Structure the Board to add value
i. Describe in detail the board structure of Dick Smith for the 2015 financial year. Discuss in detail the makeup of the different committees of the Board of Dick Smith. Your description should include a consideration of the qualifications of the Board; how many NED’s; and a comparison with ASX requirements.
ii. Using “a sceptical view” could Dick Smith have enhanced the structure of the Board and Management under this principle? Explain.
iii. What could have been the impact of these changes on everyday operations?
b. Safeguard integrity in corporate reporting
Examine in detail the recommendations of this principle and ascertain, using “a sceptical view” whether this principle was in fact implemented. Provide evidence from the Dick Smith 2015 Annual Report.
c. Recognise and manage risk
Examine in detail the recommendations of this principle and ascertain, using “a sceptical view” whether an appropriate risk management framework had been established. Provide evidence from the Dick Smith 2015 Annual Report.
d. Act ethically and responsibly
In your opinion should the board of directors have discussed the negative cash flow from operations at the Annual General Meeting in 2015. You can see the major points covered at the AGM at this link. In particular, the financial highlights on page 5 provide no indication of this issue. Discuss. Provide evidence to support your discussion from the Dick Smith 2015 Annual Report and the ASX Corporate Governance Principles & Recommendations.
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