Understanding Financial statements
All listed companies are required to prepare annual reports and lodge these with the ASX. While this is a legal requirement internally management of the company use information prepared by accountants on a regular basis to make a range of operational, strategic and management decisions. Additionally investors and potential investors also use the information provided in annual reports. Both management and investors use a range of interpretive techniques to make assessments and draw conclusions about a company. Required Referring to the 2014 annual reports of Flight Centre Apply two of the interpretive techniques studied in topic three, analyse the financial data contained in the three financial statements and comment on the company’s profitability, liquidity and gearing (10%) Critique the usefulness of publicly available financial information contained in the annual report of a company from the perspective of a potential investor (5%) The assignment needs to be presented in a standard report format including an executive summary, table of contents, introduction, body and conclusion. The report is to be 2000 words in length. Your report must include as an appendix details of all calculations completed as part of the interpretive techniques applied to reach your conclusions.