ACCT 11059 – Using Accounting For Decision Making
Prepared By Lingdi Fu (s0210541)
Lecturer & Tutor’s Name: Mitch Hsu
Due Date: Saturday, 4th August 2012, 11:00 PM
Step1
During carefully and thoughtfully read through the firm’s latest annual report. We can find the company is called GR Engineering Services. It is an Australian Securities Exchange (ASX) listed public company located in 183 Great Eastern Highway, Belmont. The principle activities of the company is providing high quality process engineering design and construction services to the mining and mineral processing industry. The company’s market is focus on Western Australia, New South Wales and Solomon Islands. After access all the figures and numbers in the financial statements of GR engineering Services Limited Company including the Statement of Comprehensive Income, the Statement of Financial Position and the Statement of Change in Equity, it’s obviously that the company has achieved great success and operated profitable in recent years, especially in the last financial year ended as 30th June 2011. There are some areas in the financial report have some difficult to understand are shown below: (1) The Earnings Per Share in the Statement of Comprehensive Income compare with the dividend per share; (2) The Issued Capital balance as at 1st July 2009 is only $1,000 and the then the company made a profit over 7 million; (3) Some definition of specific item such as issue of options in Statement of Change in Equity and the Deferred tax assets in Statement of Financial Position. The GR Engineering Services Limited Company’s businesses are mainly focus on two areas: the first one is project design and constructions (89%); the second one is studies and consulting (11%). Even though the company has achieved great success so far, but the company is not complacent and focus more on study activities to support the company’s strategy of continued revenue