澳洲会计学课程论文2

Page1of10WoolworthsLtd:AFinancialAnalysisSubmittedby8October2010Page2of10TableofContents1.0ExecutiveSummary..................................................................................................................32.0Introduction...............................................................................................................................33.0KeyObjectives..........................................................................................................................34.0Theoreticalbackground............................................................................................................45.0Researchmethodology..............................................................................................................46.0Researchfindings......................................................................................................................46.1Geographicalcomparison..................................................................................................46.1.1EuropeanUnion.......................................................................................................46.1.2TheUnitedStates....................................................................................................56.1.3Canada.....................................................................................................................56.1.4Korea.......................................................................................................................56.2ComparisonofadoptingIFRSbeforeandafterthecrisis.................................................56.2.1AdoptionofIFRS–thecasesoftheUnitedStates.................................................56.2.2.Korea......................................................................................................................67.0ResearchLimitations................................................................................................................78.0ConclusionandRecommendations...........................................................................................79.0References.................................................................................................................................810.0Reportreflection...................................................................................................................10Page3of101.0ExecutiveSummaryThisreportstudiesthefinancialstatementofWoolworthsandprovidesavaluationforthecompany,applyingtheapproachsuggestedinthecorporatefinanceliterature,forinstance,BredleyandMyers(2003).EmpiricalanalysisshowedthatWoolworthsisadefensivestockbyapplyingregressionanalysistothemarketreturns.Basedonthemarketdata,thefairvaluationofthefirmisA$xx.Comparedtothecurrentmarketprice,itisxx%above/belowthefairvaluationbasedonassumptionsdrawnfromhistoricalmarketdataandfinancialreports.Thefirmisthereforeundervalued/overvalued.2.0IntroductionThissubmissionservesforseveralpurposes.HistoricalpricedataofthecompanyandtheboardmarketindexaredrawnfromYahoo!Financetoclassifywhetherthestockisdefensiveorriskyfromtheirhistoricalreturns,basedonthecapitalassetpricingmodelproposedbySharpe(1963).Basedontheslopeobtainedfromtheregressionanalysis,thecostofequityisdeterminedintheprecedingsection.3.0DeterminethecostofequityforthefirmTodeterminethecostofequityofthefirm,atypicalapproachistoconsidertheuseofcapitalassetpricingmodely=0.494x+0.0002R²=0.3016-0.08-0.06-0.04-0.0200.020.040.060.080.1-0.1-0.0500.050.10.15CharacteristicLineofWoolworthAdjCloseReturnsPage4of104.0CashFlowForecastsTodeterminethevalueofthefirm,anecessarystepistoforecastthefuturecashflow.Basedonthepro-formafinancialstatementsrebuiltintheprevioussection,thefreecashflowanalysiswillfollowtheapproachsuggestedbyDamodaran(2007)andxx(2003).5.0ResearchmethodologyThissessionoutlinestheresearchmethodologiesusedinthissubmission.Firstofall,asetofregionswillbestudiedinthisreporttogiveanoutlookonthepaceofimplementationofIFRSaroundtheglobe.Next,thissubmissionstudieswhethertherehasbeenchangedinadoptingIFRSbyinvestigatingthecorporations,regulatorybodiesandinvestors.DevelopingregionsanddevelopedeconomieswillbecomparedinadoptingIFRSsoastocomparethefactorsaffectingthepaceofadoptingIFRS.6.0Researchfindings6.1Geographicalcomparison6.1.1EuropeanUnionEuropeanUnionhasmovedtheaheadinadoptingIFRScomparedtoothercountries.InJune2000,theEuropeanCommissionpublishedthedocument,EUFinancialReportingStrategy:TheWayForward,whichsuggestedthatallpubliclylistedcompaniespreparetheirconsolidatedaccountsinaccordancewithIASby2005.Giventhescaleofthepledge,morethan9,000listedcompaniesarenowusingIFRSwhengeneratingtheirconsolidatedfinancialstatements,accordingtostatisticscompiledintheDanske’s(2006)research.Inaddition,memberstatesoftheEuropeanUnion(EU)allowcompaniestouseIFRSforcorporateincometaxstatements.Today,mostEUcountriesrequirecompaniestogeneratereportsthatareincompliancewithlocalGenerallyAcceptedAccountingPrinciples(GAAP)fortaxpurposes,butthoserepor