Disclosing entities are regulated by the Corporations Act (2001), Accounting Standards and ASX requirements. The continuous disclosure requirements in ASX LR 3.1 require timely reporting to the ASX of significant events and financial information that is likely to impact the price of the entity’s securities. ASX LR 3.1 contains an overriding general requirement to disclose information that a reasonable person would expect to have a material effect on price, however the rule includes the following exceptions:
Using the consolidated financial statements of Bellamy’s Australia Ltd, calculate comparing the 2015 and 2016 figures:
The percentage increase in Gross profit.
The percentage increase in net profit after tax.
Return on investment (assets) for 2015 & 16. (hint, use EBIT).
As a financial analyst, comment (two paragraphs) on the strength of the Consolidated Statement of Profit or Loss and Other Comprehensive Income for 2016.
As a financial analyst, comment (two paragraphs) on the strength of the Consolidated Statement of Financial Position for 2016.
As a financial analyst, comment (two paragraphs) on the strength of the Consolidated Statement of Cash Flows for 2016.
Based on your analysis, and Before knowledge of the recent share price decline and share trading halt, would you have recommended to your clients to buy, hold or sell Bellamy’s shares? Why?
Read and analyse the three attached articles by:
The quality of financial reporting in China: An examination from an accounting restatement perspective.
The importance and usefulness of corporate annual reports in Malaysia.
The usefulness of corporate financial reports: Evidence from the United Arab Emirates.