ACCT90012
Corporate Reporting
Group Assignment 2025 Semester 2
This assignment should be completed in groups of three to five students.
Assignment Details – See LMS
1. BACKGROUND
REA Group Ltd (REA), is an ASX-listed Australian digital property advertising company, with its flagship brand being realestate.com.au, providing listings, data, and insights for residential and commercial properties, as well as home financing solutions. REA’s business model evolved over the fiscal years ending 30 June 2023, 2024, and 2025.
In FY23, REA recorded a net profit of AUD 345 million, a decrease of 7% from the previous year's profit. Revenue of 1.39 billion also represented a slight decline. The declines in revenue were attributed to reduced real estate listings. Further, the company incurred additional costs related to the integration of REA’s financial services business, and investment in growing REA India.
In FY24, REA delivered strong increases in revenue and core earnings. Revenue of 1.70 billion represented a 22% increase from FY23. While net profit declined to 293.3 million, this decline was attributable to transitory items with core earnings increasing 24% YoY. Operating costs increased notably (employee, tech, marketing), partly due to acquisitions (e.g. CampaignAgent & Realtair) and India business scaling up.
In FY24, the company saw continued growth in profitability, reporting a net profit of AUD 677.9 million. This 124% increase was largely attributable to a AUD 151 million gain on sale of their PropertyGuru investment, core profits excluding this gain increased 23%. REA India delivered strong revenue growth, up 25% to $129m. Operating costs edged up by 12% largely due to higher employee costs.
REA 2025 ANNUAL REPORT
https://onlinereports.irmau.com/2025/REA/105/
2. ASSIGNMENT QUESTIONS
During the semester you have been exposed to the following accounting pronouncement and standards:
1. Conceptual Framework for Financial Reporting
2. AASB 13: Fair Value Measurement
3. AASB 15: Revenue from Contracts with Customers
4. AASB 16: Leases
5. AASB 116: Property, Plant and Equipment
6. AASB 136: Impairment of Assets
7. AASB 138: Intangible Assets
8. AASB 9: Financial Instruments
9. AASB 10: Consolidated Financial Statements
10. AASB 3: Business Combinations
2. ASSIGNMENT QUESTIONS continued
1. Review the 30 June 2025 Financial Statements of REA Group Limited and for each accounting standard studied this semester, briefly explain, how the standard has been applied by REA.
10 Marks. Word Limit: 1000.
2. Review the 30 June 2025 Financial Statements of REA Group Limited and identify which two of the accounting standards we have studied this semester are the most important to users of REA financial statements (you will need to use your judgment here). Discuss the extent to which these standards have provided useful information to the users of REA’s financial statements.
5 Marks. Word Limit: 500.
3. Discuss the following statement “REA’s financial statements have not served its financial users well. There is so much more information users need to know about this organisation that are not presented in its financial statements”. In your discussion include specific examples of other information that you believe would have been helpful to users of the financial statements.
5 Marks. Word Limit: 500.
4. ASSESSMENT CRITERIA
Responses will be assessed using the following guisdelines:
Completeness: Captures all the material issues and concerns within the case. Given the word limits, no major issues or considerations are missed.
Technical accuracy: Recommended solutions are consistent with Lectures, Australian Accounting Standards, and textbook guidance.
Research: The paper demonstrates an effective approach to researching key assignment questions and topics. The research relates to the question raised and acknowledges sources. Arguments are logical.
Business writing: The writing is concise and provides specific examples and evidence from the case provided.