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2 questions needs tobe answered all the details are in the document please let me know if you need anything Thanks buaccounting_5930assignment_sem_1_2020.docx lendlease_group_2019_annual_reportaccounting.pdf Unformatted Attachment Preview Assignment for Submission Subject: BUACC 5930, Accounting Concepts and Practices Semester 1, 2020 This is a Group Assignment. This is due in week 10 or 11. All questions must be completed. Question 1. Lendlease is an international property and infrastructure Company. It is currently the fifth largest in Australia. The 2019 integrated annual report for the Company is provided on the subject Moodle shell. Using the 2019 Report, compare the financial results of the Company between 2018 and 2019. You should use any financial information provided in the 2019 reports (including ratios, and narratives) to conclude on the improvements or not in financial position and profitability. You discussion should focus on reasons for this. What other information would you need to make an assessment of Lendlease? Word Limit 1100 words, Marks = 45 Question 2. The 2019 integrated annual report is the fourth for Lendlease. Explain what is an integrated report, and how Lendlease is Managing and Measuring Value. What is your opinion of the Sustainability achievements of Lendlease? Word Limit 750 words, Marks = 30 Question 3: Exercise 12.10 McClean, Roberts and Associates page 570, Hoggett et al., (2018) (10 marks) Question 4. Exercise 18.9 Trinh’s Nail Supplies, page 843-844, Hoggett et al., (2018) Part a only. 1 (10 marks) 2 BUACC5930, Group Assignment Marking Scheme Names: Student Numbers: Bases of assessment Question 1 Marks Possible / 45 Comparing the financial results from 2018 to 2019. Use of key results (and their explanation) including ratios and narrations (15 marks). Discussion on the improvements or not in financial position and profitability, and reasons (15 marks). What other information would you need to make an assessment of the company? (15 marks) Question 2. / 30 Examination of how Lendlease is Managing and Measuring Value (10 marks) How do you rate the sustainability of Lendlease? (20 marks). Question 3 / 10 Presentation and Accuracy of all parts Question 4 / 10 Presentation and Accuracy of all parts Overall Presentation – including cover page, line spacing, page numbering, referencing according to the APA 7. 3 /5 (see https://federation.edu.au/library/guides/helpwit h-referencing Total / 100 4 19 August 2019 Lendlease Group 2019 Annual Report Lendlease Group today announced its results for the year ended 30 June 2019. Attached is the 2019 Annual Report, including: ▪ ▪ ▪ Directors’ Report Remuneration Report FY19 Financial Statements ENDS FOR FURTHER INFORMATION, PLEASE CONTACT: Investors: Justin McCarthy Mob: +61 422 800 321 Media: Stephen Ellaway Mob: +61 417 851 287 Lendlease Corporation Limited ABN 32 000 226 228 and Lendlease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lendlease Trust ABN 39 944 184 773 ARSN 128 052 595 Level 14, Tower Three, International Towers Sydney Exchange Place, 300 Barangaroo Avenue Barangaroo NSW 2000 Australia Telephone +61 2 9236 6111 Facsimile +61 2 9252 2192 lendlease.com Lendlease Annual Report 2019 As the world reinvents itself 3/ Lendlease Annual Report 2019 / 3 Contents About this report The Lendlease Annual Report 2019 has been prepared with reference to the International Integrated Reporting (IR) Framework that encourages businesses to consider what creates value for them and how this value contributes to long-term sustainable returns for securityholders. Lendlease presents its fourth integrated annual report to communicate how our business operates, our competitive advantage, and our performance and outlook. Materiality A matter is considered material if Lendlease’s senior management and those charged with governance believe it could significantly impact the value created and delivered in the short, medium and long term. Lendlease identifies and captures material matters through the following processes: • Project Control Group (PCG) sessions, which include key internal stakeholders and represent the governance structure for overseeing the completion of the annual report • Capturing feedback through engagement and research during the financial year from key external stakeholders including investors, analysts, and other relevant groups • Engagement with the Board • Confirming that the strategy and the global trends influencing our strategy are consistent and relevant with the information collected above. The outcomes of these processes are the material issues noted on page 40, and our strategy and the global trends influencing it on pages 16 to 19. Directors’ Report and Operating and Financial Review (OFR) The required elements of the Directors’ Report, including the OFR, are featured on pages 4 to 127 of this report and include the sections: Our Business, The Role We Play, The Value We Create, Managing and Measuring Value, Risk, Performance and Outlook, and Governance. The OFR is covered specifically on pages 4 to 75. All non-financial metrics included in the Directors’ Report on pages 4 to 61 have been verified through our internal verification process. The Remuneration Report on pages 92 to 123 and the Financial Statements on pages 128 to 190 have been audited by KPMG. The world in which we operate is rapidly changing. A number of global trends, including urbanisation and technology, are reshaping the way people across the planet live. Increasingly, governments and our other customers are looking to Lendlease for solutions. Fittingly, the theme of this year’s annual report is ‘as the world reinvents itself’. At Lendlease, we have five focus areas that contribute to creating long-term value for our securityholders and the broader community. Icons are used throughout the report linking our activities to this value creation. Directors’ Report Reporting suite Lendlease’s Reporting Suite provides information about the organisation and its key financial and operational achievements including: • The Annual Report. Features information on Lendlease, our strategy, integrated financial and operational performance, corporate governance, Directors’ Report, Remuneration Report and Financial Statements • Bi-annual Results Presentation. The current reporting period’s financial results and detailed segment information for projects, investments and pipeline • www.lendlease.com Includes additional information on sustainability reporting, corporate governance, tax compliance and historical financial information. All financial amounts in this report are in Australian dollars unless otherwise specified. Lendlease Corporation Limited ABN 32 000 226 228 Incorporated in NSW Australia Lendlease Responsible Entity Limited ABN 72 122 883 185 | AFS Licence 308983 as responsible entity for Lendlease Trust ABN 39 944 184 773 | ARSN 128 052 595 1. Our Business 4 Our vision to create the best places 6 FY19 highlights 8 Chairman’s Report 10 Group CEO and Managing Director’s Report 12 2. The Role We Play 14 Our strategy and capabilities 16 Global presence, gateway cities 17 Global trends influencing our strategy 18 Development 20 Construction 22 Investments 24 3. The Value We Create 26 Partnering 28 Connected developments 4. Managing and Measuring Value 38 Our five focus areas of value creation 40 Health and Safety 42 Financial 44 Our Customers 46 Our People 48 Sustainability 50 5. Risk Risk governance and management 58 Key risks and mitigation 60 6. Performance and Outlook 62 30 7. Governance 76 Populations are changing 32 Board of Directors’ information 78 Sustainable communities matter 34 Remuneration Report 92 Creating the future 36 Directors’ Report 124 Lead Auditor’s Independence Declaration 126 8. Financial Statements 128 9. Other Information 198 Securityholder information 200 Glossary 203 Corporate Directory 204 Award-winning International House, Barangaroo South, Sydney In shaping cities and creating noteworthy places, we look to innovate around product and design. 56 Front Cover The Exchange, Darling Square, Sydney Almost 20km of sustainably sourced timber wraps The Exchange, or as locals call it, the ‘bamboo basket’. 4/ As the world reinvents itself Lendlease Annual Report 2019 / Our Business / 5 1 Lendlease is an international property and infrastructure group with core expertise in shaping cities and creating strong and connected communities. Being bold and innovative characterises our approach and doing what matters defines our intent. Our Business We create award-winning urban precincts, new communities for older people and young families just starting out, retail precincts, and work places to the highest sustainability standards. We are also privileged to create essential civic and social infrastructure including state-ofthe-art hospitals, universities and stadiums around the world. Lendlease has been entrusted with many projects of public, cultural and social significance: constructing the Sydney Opera House, creating the National September 11 Memorial & Museum in New York, and restoring and renovating historic buildings such as London’s Tate Britain and National Theatre. As we expand our experience and our footprint, we aspire to continue creating places people want and care about, and providing value for securityholders and the broader community. Headquartered in Sydney, our people are located in four operating regions: Australia, Europe, the Americas and Asia. Southbank, Chicago (artist’s impression) Lendlease is undertaking a major revitalisation on the banks of the Chicago River, on a site that has been mostly dormant for half a century. 6/ As the world reinvents itself Lendlease Annual Report 2019 / Our Business / 7 Our vision To create the best places Our values guide our actions so we can do our best work and create long-term value for securityholders and the community. Our values. Our best work. Places where people want to be. Long-term value. Every day millions of people live, work and play in the places we imagine, build and manage. Respect Our expertise and track record span the imagining of a place, making it possible, its funding (whether it’s our funds or investors’), through to its development and construction. We also manage places. However, the value of what we do is far more than a financial transaction and the legacy we leave is far more than a physical presence. We measure our success by the positive outcomes we effect in five focus areas of value creation1: Be dedicated to relationships. Integrity Be true to our word. Innovation Be challenging in our approach. This is our integrated business model and we apply it in a disciplined way to shape cities and create and connect communities. Through our growing urban regeneration expertise – the cornerstone of our strategy – we are a partner of choice; known, respected and trusted in the markets in which we operate. Collaboration Be one team. Excellence Be exceptional in everything we do. Trust Be open and transparent. Innovation is part of our heritage and embedded in our approach to business. Health and Safety Everyone has the right to go home safely. We remain committed to the health and safety of our people, our subcontractors, and all of those who interact with a Lendlease place. Financial A strong balance sheet and access to third party capital enables Lendlease to fund the execution of its pipeline and deliver quality earnings for our securityholders. Our Customers Our People Our Customers love the places we create when we partner effectively, collaborate and innovate. Only through these actions can we respond to a changing world. Our People and culture are the greatest contributors to our success and our ability to create the best places. 1. Please refer to Section 4, pages 38 to 55, for more detailed information on our five focus areas of value creation. Sustainability Sustainability is core to our planning and clear in our outcomes. We have a proud history of giving emphasis to environmental, social and economic impacts. 8/ As the world reinvents itself Lendlease Annual Report 2019 / Our Business / 9 FY19 highlights¹ 90\% plus 90\% Health and Safety of our people agreed that safety is a key priority in their teams and that Lendlease creates a culture of working safely Operations without a Critical Incident 2018 Winner Multinational Employer category at the Global Centre for Healthy Workplaces Awards Places we created Places we will create Delivered To be delivered 1,623 $96.1b2 Residential apartments for sale including in Sydney, Melbourne and London Development pipeline • 21 major projects2 across 10 gateway cities Our first Financial $467 $804 Million Million Profit after Tax Core Profit after Tax 12.8\% Core Return on Equity Major urbanisation People surveyed around the world in our annual customer research Launched a range of digital solutions to enrich the lives of our customers including the trial of autonomous vehicles in a retirement village 94\% Gender Leadership positions held by women FY19 at Paya Lebar Quarter 26.1\% in Sydney, Lakeshore East in Chicago, and MIND in Milan • Preferred development partner for the $14.5 billion Thamesmead Waterfront and $2.7 billion Birmingham Smithfield projects in the UK • Development pipeline includes $14.7 billion communities and retirement pipeline, c.50,000 lots $9.7b of construction work including Bankwest Stadium Strengthened residential investment partnership • Funds under management increased by 17 per cent to $35.2 billion • Post balance date secured a major urbanisation project in the San Francisco Bay Area at c.$20 billion key talent retention rate Our target retention rate for key talent is 90 per cent or higher across all talent programs • Three new major projects secured in FY19: Victoria Cross $9.9b of new secured work in Core Construction $15.6b Core Construction backlog revenue Future legacies US$1b Our People 83,000 sqm residential for rent apartment building, The Cooper at Southbank, Chicago with 452 units project at Darling Square now complete after a decade in development 22,500 plus Our Customers Office precinct of • New Sustainability Framework supporting positive outcomes for the environment and society • Signatory to the Uluru Statement from the Heart • Partnerships to skill people and support them into meaningful employment: 2121 in Italy, Chicago Cook Workforce Partnership, and CareerSeekers in Australia • New philanthropic initiative, FutureSteps, with $500,000 seed funding to boost support for vulnerable people Awarded 2018 International Property Awards Best Office Development, Commonwealth Bank, Darling Square LEED Gold Certification The Cooper, Southbank 100\% 100\% Sustainability Total development pipeline achieved or targeting green certification Workplace Wellbeing Awards 2018-19, held by UK mental health charity Mind, Lendlease Europe received the highest accolade 2018 GRESB The Australian Prime Property Fund (APPF) Commercial achieved the number one ranking of 874 participants internationally in the GRESB annual real estate assessment (the fourth time the fund has attained the top global ranking) 1. Further information about these highlights, and more detailed analysis, can be found on the relevant pages throughout this report. The Council on Tall Buildings and Urban Habitat 17th Annual Awards, Best Tall Building Awards, Residential or Hotel Building in the World, 277 Fifth Avenue, New York City 2018 GRESB Our Asia funds again topped the rankings in the Asia Retail category for leadership in sustainability 2019 Australasian Reporting Awards Integrated Reporting Award (FY18 Integrated Report) for the second year running Cannes Lions International Festival of Creativity 2019 Silver Lion, Lendlease Mums for Safety campaign 2. Includes the San Francisco Bay Area project c.$20 billion secured post balance date. 10 / As the world reinvents itself Lendlease Annual Report 2019 / Our Business / 11 In my first report as Chairman, I acknowledge the past year has been a difficult one for the Group which has impacted our securityholders, customers and employees. The underperformance of the Engineering and Services business, and subsequent erosion of securityholder value, has been disappointing, and has overshadowed the underlying strong performance of our core business, which has achieved significant success. My immediate priority as incoming Chairman was to lead the Board in a strategic review of the Engineering and Services business. This review made it clear that despite the strength of the sector in which Engineering and Services operates, and the ability of our team to deliver outstanding customer solutions, the business has a different risk and return profile to that of the broader Group. Accordingly, we determined the business was non core and separating it from the Group was in the best interests of securityholders and employees. This would allow both the Group and the Engineering and Services business to focus on their core competitive advantages. The Board is currently overseeing a sale process for the non core business. Chairman’s Report Our primary strategic focus for the past decade has been to respond to the global trend of major urbanisation in key gateway cities. Significant progress has been made and today Lendlease has a development pipeline approaching $100 billion of which approximately 70 per cent is offshore. This reflects our competitive advantage in placemaking and provides a substantial platform for future growth. On behalf of the Board, I recognise we need to rebuild the confidence of the market in our ability to leverage this platform to deliver long-term sustainable growth in securityholder value. This is my personal accountability, and the Board and leadership team will work with determination to rebuild confidence in Lendlease and set the company up for future success as it delivers on its record pipeline. Health and Safety Health and Safety remains our number one priority and the human element of what we do takes precedence over everything else. Our people often work in challenging environments and Lendlease has an unrelenting focus on safety. Following the tragic fatalities of 2018, we undertook a detailed review across our global businesses to gain deeper insights into how cultural factors link with safety performance across different geographies and sectors. We will apply these insights in our review of our Global Minimum Requirements for safety during 2020. Financial Strength The Group delivered Profit after Tax of $467 million for the financial year ended 30 June 2019, impacted by the underperformance of the Engineering and Services business. Securityholders will receive a final distribution of 30 cents per security, taking full year distributions to 42 cents per security. The payout ratio for the year was 50.7 per cent, which is within the Board’s stated target range of 40 to 60 per cent of earnings. The on market buyback was announced in February 2018 and completed in February 2019, with $352 million of securities purchased. This resulted in a three per cent reduction in the weighted average number of securities on issue. The Group enters FY20 in a strong position with a record pipeline of work, cash and cash equivalents of $1.3 billion and gearing of 9.9 per cent. The resilience of the balance sheet, along with continued capital partnering, provides the financial flexibility to capitalise on growth opportunities generated by our business model. Governance During the year, the Board undertook a comprehensive review of its governance practices. A range of opportunities were identified to enhance the effectiveness of Board processes and the responsibilities specifically reserved for the Board and its committees. As a result, changes have be ... Purchase answer to see full attachment