Fin��al - ACC1002X Group Project Group B22-1...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC1002X Group Project Group B22-1 Tutor: Luo Shuqing Members: He Yuxuan (A0077938J) Liang Xinquan (A0077904X) Meng Zehui (A0077878A) Sun Rui (A0078082B) 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Financial Analysis of Viz Branz Section I: Analysis of Non-financial information (17 points): 1. What are the three principal lines of business of the company? (6 points) 2. On what day does the company’s fiscal year end for the year of 2009? (2 points) Answer: June 30. (P27 Director’s Report) 3. List three types of risks Viz Branz faces in its business operations (3 points) Answer: (P5, Chairman’s Statement) Firstly, the fluctuation of exchange rates would have significant impact on Viz Branz performance, since significant amount of business are transacted in other currencies such as RMB. Secondly, fluctuation in crude oil’s prices would affect the company through the price of raw materials that they use, as well as transportation, distribution costs and other production overheads. Thirdly, the company is in the process of re-locating and consolidating flexible packaging printing operations in Shantou into a new building during the next financial year. This could result in some temporary disruptions and have an impact on sales to third parties. Additionally, some internal funds will be setting aside to upgrade certain of the equipment in the process. 4. Read the auditor’s report in the document (4 points). (a) Who was the auditor of “Viz Branz Ltd” for the fiscal year 2009? (1 point) (b) What kind of audit opinion did Viz Branz Ltd receive? (1 point) (c) Briefly explain what this audit opinion means to external users such as investor and creditors. (2 points) Answer: (P28~29) 2
Background image of page 2
(b) The audit opinion is an unqualified opinion that the company gives a true and fair state of the company financial report. Besides, the company is capable to pay the debts. (c) This audit opinion gives investors and creditors confidence to keep investing. For investors and creditors, they need information to judge whether to keeping investing or not. The audit opinion gives reliable information to investors and creditors. 5. What is the reporting currency of the annual report? (2 points) Answer: The financial statements are presented in Singapore dollars (SGD or $). (P5) Section II: Analysis of Financial information (44 points): 6. Read the notes on cash accounts of the company (5 points). (a) How many different currencies did Viz Branz hold as cash and cash equivalent? (3 points) (b) Which currency has the largest percentage of the cash and cash equivalent? (1 point) (c) How are the exchange rates of different currencies determined in the reported financial statements? (1 point) Answer: (a) Singapore dollars, RMB and US dollars and others (eg, JPY). (P74~ Note 26) (b) RMB (P74~ Note 26) (c) Transactions in foreign currencies are recorded on initial recognition in the functional currencies at exchange rates approximating those ruling at the transaction
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/10/2011 for the course ACCT 1002 taught by Professor Ng during the Spring '11 term at National University of Singapore.

Page1 / 13

Fin��al - ACC1002X Group Project Group B22-1...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online