ACC302 – Accounting Theory
Trimester 2, 2020
Group Assignment
Due Date: Part 1 – Week 6 (15 August 2020)
Part 2 – Week XXXXXXXXXXSeptember 2020)
Value: Part 1 – 7%
Part 2 – 8%
Length: Part 1 – 1200 Words
Part 2 – 1200 Words
Referencing: Harvard Referencing
Group:
Email
format:
Maximum 3 members in a group. Please organise yourselves into groups. After the
formation of the group, you must inform your lecturer by email.
From : Member1@email
To : XXXXXXXXXX
CC : Member2@email, Member3@email
Subject : Group for ACC302 Group Assignment
Information provided in the email:
Name of Member 1, Mobile number used for assignment communication purpose)
Name of Member 2, Mobile number (used for assignment communication purpose)
Name of Member 3, Mobile number (used for assignment communication purpose)
Part 2
As a financial analyst you need to advise your clients to invest in different investment portfolio by
uying good shares and hang onto them. Therefore, you are interested in a company’s long-term
earning power.
You have been allocated an ASX enlisted company. If you haven’t got it yet, please talk to your lecturer
immediately.
Then you need to complete the following tasks using the information of the allocated company. You
must provide the page numbers of the annual report in reference using “Insert Footnote” option in
Microsoft Word.
Task 1: (Word limit: 400 words, 10% variation is acceptable) T5
a. Read the “Remuneration Report” section of the annual report. Give a summary of the
management bonus paid in the cu
ent year in your allocated company.
. Explain the management bonus hypothesis of positive accounting theory.
Task 2: (Word limit: 400 words, 10% variation is acceptable) T7
a. Read the “Sustainability Report” section of the annual report. Give a summary of how well
the company have done sustainability accounting in the cu
ent year.
. Explain, why would this company need to produce sustainability report?
Task 3: (Word limit: 400 words, 10% variation is acceptable) T4
a. Give a summary of the measurement assumptions / methods used in your allocated
company.
. Explain, why is accounting measurement potentially controversial? Which measure methods
from the following were used by your company? Explain one of them in reference of the
annual report.
• historical cost;
• value to the business (also known as deprival value or cu
ent cost);
• fair value;
• realisable value; and
• value in use
Peer review:
Each member must fill the peer review form separately and hand in to the lecturer. Appendix A.
Appendix A – Peer Review form
Group Name :
Please remember, for more than one submission, the group will be penalised.
Name & Student ID of the member who submitted the research assignment on behalf of the group
in MyPIA. :
Consider the contribution of yourself and each of your group members. What tasks did each group
member do for the research assignment, and what proportion of the total effort do you think each
group member contributed?
Student ID &
Name
Tasks Proportion of
total effort
Y
O
U
2.
3.
Consider the contribution of yourself and each of your group members. What mark would you give
each person out of 10? You must explain why.
Student ID &
Name
Mark Out
of 10
Explain in detail WHY the person deserves this mark.
Please note that NO ONE is perfect (i.e. worth 10 marks)
Y
O
U
2.
3.
Your Name :
Time & Date :
Your signature :
ANNUAL REPORT
2019
ko
g
an.co
m
A
nnual R
ep
o
t 20
19
F
o
p
e
so
na
l u
se
o
nl
y
$30.1m
EBITDA
1,609,000 Active Customers
$551.8m
GROSS SALES
15.6%
YOY EBITDA
GROWTH
HIGHLIGHTS 2019
F
o
p
e
so
na
l u
se
o
nl
y
1Annual Report 2019
15.9%
YOY GROWTH IN
ACTIVE CUSTOMERS
STRONG GROWTH
THROUGH KEY
INITIATIVES:
EXCLUSIVE BRANDS
KOGAN MARKETPLACE
INVESTMENTS
IN INVENTORY &
MARKETING
NEW
VERTICALS
EXPANSION:
KOGAN MONEY
HOME LOANS
KOGAN CARS
CONTENTS
2 Chairman’s Lette
3 Founder & CEO’s Report
6 Operating & Financial Review
18 Directors’ Report
25 Remuneration Report (Audited)
33 Auditor’s Independence
Declaration
34 Financial Report
76 Directors’ Declaration
77 Independent Auditor’s Report
82 Shareholder Information
85 Corporate Directory
F
o
p
e
so
na
l u
se
o
nl
y
kogan.com2 kogan.com2
The FY19 results show the execution of a clear
strategy, an agile and committed team and best-in-
market consumer offerings. We adapted to changes
in GST application, diversified and expanded our
warehousing locations and invested in both inventory
and new service offerings to support both our growth
ambitions and our customer experience.
In FY19 our Exclusive Brands portfolio business
achieved accelerated growth of 41.6% on FY18 and
Kogan Mobile grew commission-based revenue by
9.8% year-on-year. Importantly, these growth rates
were off a very strong base.
At 30 June 2019 we had a strong balance sheet with
$27.5 million in cash and an undrawn debt facility of
$30.0 million. Inventory levels were $75.9 million with
more than 99% of this being less than 365 days old.
Kogan.com’s portfolio continued to expand and
diversify in FY19 through the launch of Kogan
Marketplace, Kogan Money Home Loans and Kogan
Cars. Each service offering is in partnership with
industry leaders.
Our aim has always been to deliver incredible value
to our customers. We continue to expand our portfolio
of
ands and services with best-in-market offers.
STRATEGIC OPPORTUNITIES
At Kogan.com we see enormous opportunity for
growth in both our existing businesses and in the
expansion of our portfolio. We have announced
agreements with industry leading partners for New
Verticals set to launch during the first half of FY20.
FY20 will see the launch of Kogan Money Super,
Kogan Money Credit Cards, Kogan Mobile New
Zealand and Kogan Energy. These new partnerships
will strengthen and complement our existing
portfolio of businesses.
In relation to the new launches in FY19, of most
significance has been Kogan Marketplace. This is
proving to be a transformational step for Kogan.com
as it will allow us to move to a more capital-light
usiness model. We have a backlog of sellers
wanting to join the platform and have received
overwhelmingly positive feedback from
our customers.
PEOPLE
Our team at Kogan.com is truly committed to
inging our business strategy to life across all areas
of the business. On behalf of the Board, I would like
to thank each and every one of our amazing team
members for their hard work throughout the year.
DIVIDEND
Following the strong results of FY19, the Board was
delighted to declare total dividends of 14.3 cents per
share, fully franked. This represents year-on-year
growth of 10.0%.
LOOKING AHEAD
Through the incredible work that has been performed
in FY19, the Board truly believes Kogan.com is set to
have another strong year in FY20 and beyond, and
we can’t wait to deliver even better value to our
customers and shareholders into the future.
Greg Ridder
Chairman
CHAIRMAN’S LETTER
I am delighted to present Kogan.com Ltd’s
(Kogan.com) Annual Report for the financial
year ended 30 June 2019 (FY19). This year
the team delivered over half a billion dollars
in Gross Sales for the first time whilst also
delivering double digit growth of Gross
Profit and EBITDA.
F
o
p
e
so
na
l u
se
o
nl
y
3Annual Report 2019
FOUNDER & CEO’S REPORT
We delivered strong growth in the
usiness while we continued to invest
in the future. We have made significant
advancements in our mission to make the
most in-demand products and services
more affordable and accessible.
The Kogan
and has gone from strength-to-
strength over the last 12 months. Our team has
worked tirelessly to deliver a wider range of
products and services at exceptional prices,
cementing Kogan.com as the destination for
market-leading value.
During the year we have also taken measures
to improve our return on investment on marketing
and warehousing expenses to ensure we maintain
a low cost of doing business.
The year had many highlights, some of which were:
• Gross Sales exceeding half a billion dollars for
the first time ever;
• Double digit growth of Gross Sales (12.0%),
Gross Profit (12.5%) and EBITDA (15.6%)
on last year;
• Growth of Active Customers by 15.9% on
FY18, now totalling more than 1.6 million;
• Accelerated growth of our Exclusive Brands
product division, achieving growth year-on-year
of 41.6%;
• Expanding our warehousing footprint to
13 locations, providing faster and cheaper
fulfilment to our customers;
• Achieving strong growth of Kogan Mobile,
Kogan Internet and Kogan Insurance;
• The launch of Kogan Marketplace, Kogan Money
Home Loans and Kogan Cars;
• The announcement of Kogan Money Super,
Kogan Money Credit Cards, Kogan Mobile
New Zealand and Kogan Energy, all expected
to launch in 1HFY20.
These key highlights are the result of meticulous
planning and execution by the Kogan team during
the year.
BUILDING THE KOGAN.COM PORTFOLIO
At Kogan.com, everything we do revolves around
our promise to our loyal customers, to make the
most in-demand products and services more
accessible and affordable. By delivering on this
promise over the past 13+ years, Kogan.com has
ecome synonymous with value and trust. It has
allowed us to leverage our
and to expand into
a portfolio of products and