Assignment Instructions
You are to survey the annual reports of five listed companies in the extractive industry sector from ASX or other sources for the most recent year possible and submit the following:
1. The list of companies selected, the dates of the annual reports and their website addresses.
2. Analyse the stated accounting policies (usually contained in note 1) concerning primary and derivative financial instruments and other stated disclosures as required under AASB 7; AASB 132 and AASB 139. You should also consider the following issues:
- The usefulness/significance of disclosing financial instruments from users' perspectives.
- The nature and extent of risks arising from financial instruments.
- How are these entities managing those risks?
- How are these entities recognising, measuring and presenting financial assets and financialliabilities?
3. Prepare a research essay which critically evaluates the various disclosures of primary and derivative financial instruments for your selected companies. Your essay should consider how and why these companies have complied with the requirements of AASB 7, AASB 132 and AASB 139 in regards to their primary and derivative financial instruments. Your evaluation may also consider the usefulness of financial instrument disclosures and awareness and management of risks associated with financial instruments.