Financial Accounting Project Outline

Review the last five year’s annual report of the assigned company and prepare a detailed report
while answering the following questions:
 Who are board of directors? What is their role? What is the difference between executive
and non-executive director? Comment on board formation, board size, and board
independence of your assigned company.
 What is annual general meeting? What is its purpose? Comment on the information
provided by company in annual report.
 Comment on the company’s statement of compliance.
 Which statements they reported in annual report?
 What is the significance of notes to the financial statements? Explain with examples of the
assigned company.
 What are accounting standards? What is the purpose of accounting standards? What
information is present in the annual report of your assigned company regarding accounting
standard?
 What is Audit committee? What is meant by audit committee independence? Comment on
the audit committee formation and independence of your assigned company.
 What is the purpose of proxy form?
 Explain equity side of balance sheet in detail. Also, highlight the differences between
outstanding and authorized shares and comment on shareholding pattern of your assigned
company.
 What is corporate governance? Explain measures taken by the assigned company to ensure
implementation of its corporate governance code.
 What is corporate social responsibility? Comment on the information which company has
provided in its annual report regarding corporate social responsibility.
 Comment on the review report to members by auditors?
 What is the difference between internal and external audit? Why both audits are necessary?
 Explain key points of auditor’s report?
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 What is the difference between EPS and diluted EPS? Comment on the company’s EPS
and diluted EPS and explain why they are different.
 Explain reserves of the company.
 Calculate and comment on the following ratios:
i. ROA
ii. ROE
iii. Debt to equity ratio
iv. Investment ratio
v. Turnover ratio
vi. P/E ratio
 What is the share price of company?
 What is credit rating? What is the company’s credit rating?
 Summarize financial performance of company and highlight future prospects of the
company.