Accounting: in Depth Review of a Company Annual Report Essays
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Activity 3: In depth review of a Company Annual Report
1. Address the following issues:
1. Name of chosen Company: Telstra Corporation
2. The registered address of the Company: Level 41 Telstra Centre
242 Exhibition Street
Melbourne, VIC 3000
3. The industry the Company is in: Telecommunications Industry
4. Period covered in the Annual report: 2009
5. Does the report contain Highlight statements? …show more content…
4. Revenue earnings per share: 32.9 cents
5. The profit/loss of the company (after tax): 4,076,000,000.00 AUD
6. Cash and cash equivalents held at the end of the period: 1,381,000,000.00 AUD
7. Dividends paid: 3,517,000,000.00 AUD
3. Answer the following questions from your annual reports
1. What financial statements are included in the annual reports and what are their purposes?
The financial statements included in the annual reports are as follows:
➢ Income Statement: The income statement is one of the major financial statements of a company. It measures a company’s financial performance over a specific accounting period. It basically helps investors and creditors determine the past performance of the company, predict future performance as well get to know the future cash flow generating capability of the company.
➢ Statement of comprehensive income: This statement measures the sum total of all the operating and financial events which have led to change in the value of the owners interest in the company.
➢ Statement of financial position: Also known as the Balance Sheet tells about the company’s assets, liabilities and ownership equity in a given accounting period.
➢ Statement of cash flows: The cash flow statement basically tells about a firm’s liquidity, solvency and its ability to