AS 91407 · 5 credits · Internal
Annual report analysis
Prepare a report for an external user that interprets the annual report of a New Zealand reporting entity
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You need to write a formal report that reads and makes sense of a real New Zealand company's annual report for someone who isn't an accountant—like a potential investor, job applicant, or community member. Your report explains what the numbers and information tell us, then recommends what that person should do based on what you've found.
What to do, grades and common mistakes
- ·Choose a real external user (shareholder, employee, customer, or community group) and clearly state what information matters most to them
- ·Read the company's annual report and pull out the relevant financial data (profits, cash flow, financial position) and non-financial information (environmental impact, staff details, community work)
- ·Explain what the profitability and cash/liquidity figures mean for your chosen user and why they matter
- ·Add specific analysis tailored to your user's needs—for example, growth prospects for an investor, job security for an employee applicant, or sustainability practices for a community group
- ·Draw a final conclusion that includes reasons why you're making your recommendation
You write a clear, formal report that reads and explains the annual report for a chosen external user, and you make a straightforward recommendation based on your findings.