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hi bro,First answer 1k words2nd answer 750 words And two solutions.(Please dont copy and paste them, do them manually.)Thanks. buacc5930_sem3_2019___assignment_questions__summer_semester_2019_20__iibit_sydney_1......pdf telstra__annual_report_2019.....pdf Unformatted Attachment Preview BUACC 5930 ACCOUNTING CONCEPTS AND PRACTICES Semester 3, 2019 GROUP ASSIGNMENT This assignment is worth 30\% of your total mark. Submission is due in week 10. There are four questions. All questions must be completed. Plagiarism is strictly penalised. Please refer to the university policy https://federation.edu.au/current-students/assistance-support-and-services/student-supportservices/student-advisory-service/misconduct/accused-of-plagiarism-or-misconduct for more information. Question 1. Telstra is Australias leading telecommunications and technology company, and offers a full range of communications services in telecommunications. The 2019 Annual report for the Company is provided on the subject Moodle shell. Using the 2019 annual report, compare the financial results of the Company between 2018 and 2019. You should use any financial information provided in the 2018 reports (including ratios, and narratives) to conclude on the improvements or not in financial position and profitability. Your discussion should focus on reasons for this. What other information would you need to make an assessment of Telstra’s performance? Word Limit: 1000 words (40 marks) Question 2. The 2019 Telstra Sustainability Report is provided on the subject Moodle shell. Use this information to explain how Telstra is meeting the UN Sustainable Development Goals (SDGs). What is your opinion of these initiatives? Has Telstra produced any financial and social benefits in long and short terms with its sustainable approach? You can learn more about the UN Sustainable Development https://www.un.org/sustainabledevelopment/sustainable-development-goals/ Goals via Word Limit: 750 words (30 marks) Question 3. Problem 12.12 Account Receivable and bills receivable – Cathy’s Corner page 571, Hoggett et al., (2018) (15 marks) Question 4. Problem 18.17 Statement of cash flows for a sole trader – the business of C.Wilson page 851, Hoggett et al., (2018) (15 marks) The textbook’s problems can be accessed via the library online textbook link: https://ebookcentral-proquestcom.ezproxy.federation.edu.au/lib/ballarat/reader.action?docID=5130708 30 August 2019 The Manager Market Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street SYDNEY NSW 2000 Office of the Company Secretary Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA General Enquiries 03 8647 4838 Facsimile 03 9650 0989 ELECTRONIC LODGEMENT Dear Sir or Madam Telstra Corporation Limited – 2019 Annual Report In accordance with the Listing Rules, I attach a copy of Telstra’s 2019 Annual Report, for release to the market. Yours faithfully Sue Laver Company Secretary Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556 Telstra Annual Report 2019 We believe it’s people who give purpose to our technology So we’re committed to staying close to our customers and providing them the best experience And delivering the best tech On the best network Because our purpose is to build a connected future so everyone can thrive Our values Trust each other to deliver Better together Find your courage Make the complex simple Show you care Telstra Corporation Limited ABN 33 051 775 556 Our 2019 reporting suite We take our reporting obligations seriously and we provide concise and up to date information about your company online. In 2019 this information includes our Annual Report, our Corporate Governance Statement and our Bigger Picture Sustainability Report. Our 2019 Annual Report Our Annual Report describes our strategy, financial performance and remuneration practices. The sections of our Annual Report titled Chairman and CEO message, Strategy and performance, Our material risks, Outlook, and Full year results and operations review comprise our operating and financial review (OFR) and form part of the Directors’ report. Our OFR, Directors’ report and Financial report were released to the ASX on 15 August 2019 in the document titled ‘Financial results for the year ended 30 June 2019’ which is available at telstra.com/investor. Our 2019 Corporate Governance Statement Our 2019 Corporate Governance Statement (CGS) provides detailed information about governance at Telstra and together with our 2019 ASX Appendix 4G (which cross references the ASX Corporate Governance Principles & Recommendations to information in our CGS and on our website), is available at telstra.com/governance. Our Bigger Picture 2019 Sustainability Report Our Bigger Picture 2019 Sustainability Report, which provides an in-depth look at Telstra’s approach and performance in relation to our most material social and environmental topics, is available at telstra.com/sustainability/report. FY19 Financial performance 2 FY19 highlights 3 Chairman and CEO message 4 Strategy and performance 7 Our material risks 12 Outlook 14 Full year results and operations review 16 Board of Directors 26 Senior management team 28 Sustainability 30 Governance at Telstra 30 Directors’ report 31 • Message from the Remuneration Committee Chairman 36 • Remuneration report 38 Financial report 73 • Financial statements 75 • Notes to the financial statements 81 • Directors’ declaration 168 Shareholder information 174 Reference tables 176 Glossary 179 Indicative financial calendar 180 FY19 Financial performance Reported results Total Income1 $27.8 billion Down 3.6 per cent Earnings Before Interest, Tax Depreciation and Amortisation (EBITDA) Down 21.7 per cent Net Profit After Tax (NPAT) Down 39.6 per cent $8.0 billion $2.1 billion FY19 reported performance in line with market expectations 1 Total Income excludes finance income 378,000 Net retail postpaid mobile services More than $1.9 billion returned to shareholders $456 million (down 6.0 per cent) Underlying fixed costs Total FY19 dividends 16 cents per share fully franked FY19 highlights | Telstra Annual Report 2019 FY19 highlights Australia’s first 5G network Helped approximately 1 million customers in vulnerable circumstances stay connected Mobile: 2.5 million km2 NB loT^: 3.5 million km2 Radically simplified plans 1800 20 New rewards program for customers Even more coverage 22\% Calls to contact centres 40\% Provided digital capability training to almost 36,000 people Emissions intensity since 2017 ^ Narrowband Internet of Things 3 Chairman and CEO message Dear Shareholders, This has been an incredibly important year for Telstra, a year where we embraced the many changes we need to ensure our continued success in the future, while staying true to our purpose and core values. Already we are a very different, much simpler and more customer focused organisation than we were a year ago. In the year since we launched T22 – in June 2018 – we have taken some great strides toward becoming a company that is easier to interact with, improving our service and offering fewer and more flexible products. All of this is supported by our investment to deliver Australia’s largest, fastest, smartest, and safest next generation networks and new technology to deliver a marketleading customer experience. Through T22 we have radically simplified our products and services by reducing more than 1,800 Consumer and Small Business plans to just 20 in-market core fixed and mobile plans. In the past year, we have also introduced new no lock-in mobile plans with no excess data charges in Australia and launched our customer loyalty program, Telstra Plus, which rewards members with points that can be put towards the latest devices, accessories and entertainment. For our business customers, we continue to be the best one-stop shop for all business-to-business technology needs. We have made progress on our ambition to provide modular, curated, self-service and simplified products to customers and have launched and enhanced Connected Workplace to selected customers, built on our new technology stack. While we are making good progress on our T22 strategy, we continue to feel the significant impact of the rollout of the nbnTM on our earnings and profit, and competition in the mobile market remains high. 4 Chairman and CEO message | Telstra Annual Report 2019 Our financial results Our full year results for financial year 2019, which were in line with guidance and market expectations, showed strong progress against the T22 strategy. On a reported basis, Total Income1 decreased 3.6 per cent to $27.8 billion, EBITDA decreased 21.7 per cent to $8.0 billion, and NPAT decreased 39.6 per cent to $2.1 billion. On a guidance basis2, Total Income1 decreased 2.6 per cent to $27.8 billion, EBITDA (excluding restructuring costs) decreased 11.4 per cent to $9.4 billion. Underlying EBITDA3 decreased 11.2 per cent to $7.8 billion. The largest reason for the decline in EBITDA was the impact of the nbn, with Telstra absorbing around $600 million of negative recurring EBITDA headwind4 in the period. Underlying EBITDA decreased approximately 4 per cent if you exclude the in-year nbn headwind. To date we estimate the nbn has adversely impacted EBITDA by approximately $1.7 billion, and estimate we are around 50 per cent of the way through the recurring financial impact of the nbn. We saw continued customer growth, with 378,000 net retail postpaid mobile services added, including 181,000 from Belong, taking retail mobile postpaid handheld services to 8.2 million. We also added more than 230,000 wholesale MVNO mobile prepaid and postpaid services and 107,000 net new fixed-line retail bundle and data services, including 51,000 from Belong. Our Internet of Things (IoT) business exceeded industry growth rates, with revenue growth of 19.4 per cent. On average 2,000 things are being connected to our IoT networks every day including vehicles, machines, infrastructure, smart meters and a wide array of other sensors. While we continued to grow our customers, we also significantly reduced our costs, with a $456 million (6 per cent) reduction in underlying fixed costs. Notwithstanding the intense competitive environment and the challenging structural dynamics of our industry, it is a year in which we believe we can start to see the turning point in the fortunes of the company from the changes we have embraced. For FY19, the Board resolved to pay a total fully franked final dividend of 8 cents per share, comprising a final ordinary dividend of 5 cents per share and a final special dividend of 3 cents per share. Combined with the total interim dividend paid in February 2019, shareholders will receive a total dividend of 16 cents per share for FY19, returning more than $1.9 billion to shareholders. The ordinary dividend represents a 59 per cent payout ratio on FY19 underlying earnings5, while the special dividend represents a 63 per cent payout ratio of FY19 net one-off nbn receipts6. The FY19 ordinary dividend is below the payout ratio of 70 to 90 per cent of underlying earnings, which is one of the principles in our capital management framework. In our updated Capital Management Framework7 underlying earnings now explicitly exclude guidance adjustments8 as well as net one-off nbn receipts. In determining the FY19 final ordinary dividend, the Board has taken into account a number of factors including the overall capital management framework objectives, including maintenance of financial strength and retaining financial flexibility. World-class networks We continue to invest in our world-class networks and this year we began rolling out 5G, the next generation of telecommunications technology. We were the first to launch 5G in Australia and the first telco to begin offering 5G handsets here. To begin with, we are building out our 5G coverage in 10 cities nationally, with more locations to follow. 5G is much more than just a faster smartphone – it will be a key connectivity technology enabling extraordinary new opportunities in fields like the Internet of Things, cloud computing, big data, machine learning and artificial intelligence – all areas where we continue to build our expertise and capabilities for the future. Our mobile footprint stretches out to more than 2.5 million square kilometres, vastly more than any other mobile network in Australia, and coverage extends to 99.5 per cent of the Australian population. Delivering more connectivity and better networks in a country as large and as sparsely populated as Australia is no easy thing, but Telstra continues to lead. So far we have erected 600 mobile base stations as part of the Federal Government’s Mobile Black Spot Program, and by the end of the program we will build around 800 stations – four times more than the rest of the industry combined. We are pioneering the use of new and more affordable technologies like small cell technology and mobile repeaters to increase coverage on the road. We will never be able to provide coverage to every last Australian, but our commitment is that we will work cooperatively with governments and other stakeholders, and will do our absolute best to bridge the gap between city and country better than anyone else. Simpler and more customer focused We have greatly simplified our structure and ways of working to empower our people and serve our customers. Re-engineering how we operate and removing complexity and management layers has meant a reduction in the size of our workforce particularly as nbn co, a company which did not exist several years ago, progressively becomes the wholesale provider of fixed broadband services in Australia, a role previously held by Telstra. The reality is it is not possible for Telstra to continue to operate with the same number of employees after the nbn network is rolled out as it had before nbn co-existed. Around 75 per cent of the net 8,000 direct workforce role reductions we announced as part of our T22 strategy have now been identified. We have also made progress on our target to create 1,500 new roles in areas like cyber security and software engineering. The impact our T22 strategy has on our people is the hardest of the changes we are making and we have seen that reflected in our employee sustainable engagement figure, which declined this year by 10 per cent. To support our people through the change, we are investing up to $50 million in a transition program that provides a range of services to help people move into new roles. You can read more about the T22 strategy and the progress we are making in the Strategy and performance section. In the past year, the Australian corporate landscape has undergone a seismic readjustment as customers, regulators and investors have publicly reminded large organisations of the value they place on companies being transparent, ethical and accountable in all their dealings. We understand and respect the longstanding responsibilities we have as part of the community. We were one of three Australian companies recognised on the global CDP 2018 Climate A List for our efforts to address climate change. This year we also helped around one million vulnerable people to stay connected, which is part of our 2020 target to enable 1.5 million people to connect or thrive online. We know we have more work to do 5 and we are committed to continuously improving the way we serve and support potentially vulnerable customers. Our Bigger Picture 2019 Sustainability Report provides more information on these and other initiatives. You can read more at telstra.com/sustainability/report9. Leadership renewal We continue to review and renew the composition of the Board to ensure we have the right balance of experience, expertise and fresh thinking. Our thanks to retiring directors Russell Higgins, Trae Vassallo, Jane Hemstritch and Steven Vamos for their enormous contributions and welcome to Niek Jan van Damme (previously a member of the Deutsche Telekom Board of Management) and Eelco Blok (who has more than 30 years’ experience at Dutch-based landline and mobile telecommunications company KPN). While the composition of the Board has changed over the year, we remain focused on achieving our 40 per cent target for female non-executive directors. You can read more about the Board’s composition in the Board of Directors section. In the management team, Michael Ackland was appointed to lead the Consumer and Small Business function, Christian von Reventlow now leads Product & Technology, Michael Ebeid leads Enterprise, and Nikos Katinakis leads Networks and IT. Robyn Denholm also stepped down as Chief Financial Officer (her contribution as Telstra’s CFO and COO were enormous) and has been replaced by Vicki Brady, formerly Group Executive, Consumer and Small Business. Our year ahead Our business is well positioned for the era in which we are about to head – the 2020s. Returning to growth will take time. However, we have great confidence that our strategy can arrest the decline in our earnings and create opportunities for growth. While the reported financial trends in FY19 were challenging, underlying trends are expected to improve over the course of FY20. Telstra released guidance for FY2010, with Total Income11 in the range of $25.7 to $27.7 billion, underlying EBITDA12 in the range of $7.3 to $7.8 billion, restructuring costs of around $300 million, capital 6 expenditure of $2.9 to $3.3 billion, and free cash flow after operating lease payments13,14 of $3.4 to $3.9 billion. Telstra expects net one-off nbn DA receipts15 (less nbn net cost to connect (C2C)) of $1.6 billion to $2.0 billion. Telstra also expects FY20 to be the biggest in-year nbn headwind16 to date, with $800 million to $1 billion expected from the recurring impact of the nbn. The clearest view of future financial performance of the business is provided by looking at underlying EBITDA, excluding the recurring in-year headwind of the nbn, which in FY20 is expected to grow by up to $500 million.17 You can read more about the year ahead in the Outlook section. A year of challenge and important change To sum up, FY19 was a year in which we met guidance, achieved strong subscriber growth in both fixed and mobile, and built significant momentum behind our T22 strategy. The progress we made this year is the result of the combined efforts of many people, including our dedicated employees who serve our customers and help us return value to our shareholders. We are still closer to the start of T22 than the finish, but we are confident we are moving at speed toward fulfilling our purpose to build a connected future so everyone can thrive. We are confident we have the right strategy to create sustained value for our customers, our shareholders and our employees well into the future. On behalf of everyone at Telstra, thank you for your support and we wish you a happy and healthy year ahead. John P Mullen, Chairman Andrew R Penn, CEO and Managing Director 1. Excluding finance income. 2. This guidance assumed wholesale product price stability and no impairments to investments or core assets, and excluded any proceeds on the sale of businesses, mergers and acquisitions and purchase of spectrum. The guidance also assumed the nbn™ rollout and migration in FY19 was broadly in accordance with the nbn Corporate Plan 2019. The guidance was provided on the basis of AASB15. Capex was measured on an accrued basis and excluded expenditure on spectrum and externally funded capex. 3. FY19 Underlying EBITDA excluded net one-off nbn DA receipts less nbn net cost to connect (C2C), and guidance adjustments. 4. In-year nbn headwind defined as the net negative recurring EBITDA impact on our business based on management best estimates. 5. Underlying earnings is defined as net profit after tax from continuing operations excluding net one-off nbn receipts and guidance adjustments (see notes 6 & 8 below). 6. ‘net one-off nbn receipts’ is defined as net one-off nbn Definitive Agreement (nbn DA) receipts ... Purchase answer to see full attachment