Select a matched (in terms of size and lines of business) pair of large quoted companies from two different countries. (Size could be measured by turnover and net assets or other sensible measure). It is much better for the purpose of this assignment if you choose companies which follow different accounting regulations. Therefore do not pick two companies that both follow, for example US GAAP. Select your companies with care. The website http://www.iasplus.com/dttpubs/pocket2007.pdf may help you in determining which companies use IFRS for their reporting. Obtain their recent annual reports and any other additional reports such as environmental reports that you will need. (You should contact several companies, as you may not get a response from your first choice). Do not delay doing this*. Please register the names of the companies you have picked with the module lecturer to avoid duplication, as all students are required to use different pairs. Any one company can be the same as another student’s selection. *Although you can utilise the internet to obtain company accounts please ensure you obtain the complete financial statements (usually called annual report) and not just the summary financial statements or the annual review. Selecting the right documents is critical. Required 1 Outline and contrast the different accounting regulatory environments of the two countries in which the two companies are domiciled. (10% of the marks). 2 Demonstrate the extent to which the above two countries (in which the chosen companies are domiciled) fit into any of the classification studies which have been carried out. Are classification models still useful or have they become outmoded? Do not describe the classification models. (10% of the marks) Note to Parts 1 and 2: You do not need to refer to the two companies at this stage. 3 Outline and contrast two accounting policies (e.g. depreciation, inventory valuation) used by the two companies (excluding foreign currency translation, see later part of question). Describe briefly the underlying rules that are being applied, consider the long term effects of the particular differences and evaluate the degree of conservatism in the two countries in respect of the measurement differences (If there are no differences, investigate further and explain why this is the case). You will need to examine the accounting policies note to the accounts. Ideally you should refer to reconciliations to US GAAP or IFRS where these are provided. (15% of the marks) 4 Outline and contrast the two companies in respect of one of the following and attempt to explain any differences: (a) In their environmental/social reports (b) In their approach to compliance with corporate governance regulations (e.g. combined code). Which company sets the best example and why? (20% of the marks) 5 Assess either the foreign currency translation OR segmental reporting disclosures of the two companies in the context of any applicable rules/standards. (15% of the marks) 6 Calculate or obtain (you may use Datastream, FAME or another source of calculated ratios) 6 to 10 key accounting ratios and compare the performance of the two companies making reference to the problems of international ratio analysis. Formulae used for the ratios must be shown in an appendix. (20% of the marks) 7 Provide concluding comments and reflect on what you have learnt by undertaking this assignment (5% for each part, total 10%) Note that some companies provide reconciliations to US GAAP or IFRSs. If either of your chosen companies have done this, it will be of assistance to you in doing your assignment. You MUST submit the annual reports or relevant extracts as part of your assignment and cross-reference your work to the annual reports where appropriate. • Refer to journal articles • Do not copy sections from annual reports. • Try to be critical rather than just descriptive. • Read your work through before handing it in.