Company to be analysed: ENBRIDGE INC.
Latest year-end statement to be included in your analysis: DECEMBER 31, 2021
Interim statement information to be included in your analysis: Not applicable
Company website:
• https://www.enbridge.com/about-us
• https://www.enbridge.com/investment-center/events-and-presentations#event:Enbridge-Inc-Fourth-Quarter-Year-End-2021-Financial-Results
SEDAR website: http://www.sedar.com/
WRITTEN PROJECT REQUIREMENTS
For this paper, your group is to collectively assume the role of an investment analyst. You are expected to analyse the performance of the company identified in the project information section above. Your analysis will include reviewing the company’s profitability, risk management strategy, and other aspects relevant to investors with a view to making a recommendation as to whether the subject company represents a good investment and explaining why you feel this way. Typically, this type of analysis includes the use of ratio analysis on both a trend and peer group comparison basis after satisfying yourself as to the reliability of the financial data and the impact of the accounting policies employed . Relevant and timely articles should be researched and referenced.
The purpose of this project is to give your group an opportunity to:
• Identify the components of an annual report and discuss their purpose. As an investor, which parts of the company’s annual report are you most interested in? Why? Be specific and tie your response into the company that you are analysing.
• Apply research techniques by preparing an executive summary (fact sheet) on the Company in respect of its history, market, market share, operations, officers, and any other information, financial or otherwise, which contribute to the company’s uniqueness.
• Demonstrate a general knowledge of part I of the CPA Canada Handbook – Accounting through discussion of the company’s choice of specific accounting policies. You should reference the relevant sections of the Handbook, setting out the available alternatives and why you believe that the subject company made the choices they did (e.g. comparability, income maximization, or…). As an investor, why do you care about the choices the company made? How do they impact on your analysis?
• Evaluate how the reported events after reporting period impact on your investment decision. As a potential investor, does each of the reported events make you more inclined to invest in the company or less? Why?
• Analyse the Company’s financial statements by using financial ratios and other methods to provide a conclusion as to whether you recommend the purchase of the subject company’s shares.
• Demonstrate proficiency in preparing a grammatically correct report in fashion that properly cites sources.
• Practice your presentation skills in front of a captive audience.
WRITTEN REORT Requirements
The report will have the following parts:
Item Content Max pages
1 Title page 1
2 Table of contents 1
3 Executive summary (fact sheet) 2
4 The components of the annual report and their purpose 3
5 Discussion of the company’s selection of specific accounting policies referencing the relevant sections of Part I of the CPA Canada Handbook – Accounting 3
6 Events after the reporting period (subsequent events) – refer to IAS 10 Part I of the CPA Canada Handbook – Accounting 1
7 Financial Statement Analysis based on a minimum of 5 years of financial data and your observations from the point of view of an investor 4
8 Conclusion as to the overall reporting standard achieved by the corporation and the relevance of the project to this course 1
9 Recommendation as to whether to invest in the stock and supporting rationale 2
10 Bibliography Unlimited
The report is to be prepared using Arial 11-point font, using 1.5-line spacing, and 2.54 cm margins all round.
