Introduction
Innovation is very necessary for any organisation. There are various current trends in any type of industry. Trend changes according to time. Therefore it is necessary to implement the change in the product. This can be helpful with the help of new ideas and innovation. Ideas are implemented for making the product better than the present condition of a particular product. Various problems regarding the products can be solved with the help of innovation (Björkdahl & Holmén, 2013). The productivity of the product can be enhanced with the help of innovation. Apple is having very innovative products. Innovation in the products of Apple results in a large number of sale. This assessment analyses the innovation of Apple. This report provides information that innovation is helpful in making a good offering to reach a large number of customers. Resources can be organised well with the help of innovation in the business.
Types of Innovation – Radical and incremental innovation in smartphone industry
All the devices that are made by smartphone companies are user-friendly. It is not the situation in which users are having trouble of using the devices. The connection of humanness is bringing by smartphones with the technology in the products. This strategy attracts a large number of customer towards this industry. This leads to growth and research on further innovation. It is the thinking of companies that they are designing a product for the human fingers and hands. Smartphone companies are designing their products for the humans not for the code Jockeys (Innovarsity.com, 2018.
Internet connectivity also played a great role in bringing the innovation in this industry. The art and the design in the product attract the customer. The design of the product is inspired by humanity. The human values are embedded in the products in the present smartphones. The product of present companies is the intersection of Science and humanity (Heracleous, 2013).
Radical innovation
It is the type of innovation that has never been experienced by customers. The acceptance of these type of innovations takes time to be accepted in the market. In the smartphone industry, the radical innovations by apple are: –
Formulation of offerings
According to Gershon (2013), Apple is one of the leading Smartphone, laptop and computer manufacturing organisation. This company also manufactures accessories of smartphone, laptop and computers. This organisation is one of the leaders in innovation in the world. This organisation provides unique features in its product. The uniqueness of the product results in innovation. The unique combination of great software involved in hardware results in large customer base for this organisation. Apple is having the ability to create new business species Björkdahl, J. and Holmén, M., 2013that helps in the creation of New Market Niche. Most popular products of Apple are iPhone, MacBook, iTunes, iPod and iPod. These are the products that show the great innovation in offering a product to the customer. The innovation is bringing in the Apple according to Vision and Mission of the organisation. The organisational structure of Apple matches with firm strategy.
Beauty in product
The engineering to the product of this company is accomplished so that beauty in the products can be implemented. The products are designed in such a way that they are good at Eyes. It was the belief of Steve Jobs that human being never holds ugly things in their hand. With this belief beauty in design was brought by Apple.
Incremental innovation
These are the type of innovations that are developed which are already present in the market and experienced by the customers. These innovations are developed in smartphone industry by Apple as: –
Innovative partnerships
Apple creates opportunity in the market for its partner to get a large number of profits. This opportunity can be created by Apple because of innovation. Every new product of Apple is having new innovation (Cheng, et. al., 2014). New innovation creates a difference in the market. This brings the customer to the Apple Store.
Supply chain
Apple over-invest in the supply chain management. Apple has a tendency to launch its product with the new innovation. It is the trend in the market that after the launching of the product, it gets popularised. This can result in a shortage of the product in the market.
4ps model of exploring innovation
Paradigm
Apple manufacturer’s smartphones like iPhone and also manufacturer’s iPod. These products will never be successful if there will be no App Store and iTunes. This is the innovation strategy that is followed by Apple. The app store is the smartphone application store licensed only for Apple products. Apple user can download any of the smartphone apps from App Store. Most of the Smartphone manufacturers are not having their own operating system. They purchase the licence of Play Store for smartphone applications.
Product
The employees of this organisation do face to face discussion regarding the product and its offerings that is made by the company. There can be another way like instant messaging and teleconferencing that can be used for discussing regarding the product. Apple always focuses on creating the product such that positive review can be circulated in media. Apple takes help from an influencer. This company believes in face to face analysis about the product among the employees of the organisation. The opinion can be made by any employee of the organisation regarding the correct (Lehman & Haslam, 2013). This is helpful in making the product very useful for the customer. Various problems and issues regarding the product can be analysed with the help of this discussion. The endless test is conducted by Apple before launching the product in the market. The product is offered to the customer full of analysis. The collaboration is bringing by apple for the promotion of innovation in the product.
Process
The resources of Apple can be managed well with the help of innovation. Apple is having most high price product in the market even then there are higher sales of Apple product in the market. This is because Apple places its product with unique values in the market. This helps in value creation and branding of this organisation. App stores are having innovative apps that are helpful in creating a success story for the products of Apple. A user can easily download the applications from the App Store and use them for their utility (Shuler, et. al., 2012). iPhone get its platform in the world market because of App Store. The strong business model for Apple is because of Association of product with the software and other technology that is also made by Apple. iTunes is used in Smartphone as well as iPods. iTunes is a media player from which online music can be played. iTunes launched on 9th of January 2001. It can be operated in Mac OS. Mac OS is the graphical operating system that is developed by Apple for its product.
There is no permission required for Apple products while using app store and iTunes. Products and the software both are developed by Apple. These are the main resources of Apple hands can be easily managed as developed and operated by Apple only. This business model is creating a large amount of profit for Apple. The applications present in the app store are user-friendly and authenticated. There are very less chance of malware entering in the Smartphone and laptop application of Apple. This creates trust among the customer. This is the milestone example of innovation that is managing its software as well as hardware resources (Innovarsity.com, 2018).
Position
Apple is blessed with employees like Steve Jobs. Innovation is promoted by Steve Jobs in this organisation (Kapoor & Agarwal, 2017). With the help of innovative process the customers can be targeted by the apple at different places like in the seminar, public gatherings. The online advertisements and the TV commercials are also the good tools of targeting the people by Apple. Innovative ideas were welcomed from any of the employees of Apple at the time of Steve Jobs as well as the present by which targeting of the customers can be possible.
Sources of Innovation
Partnership
Apple stores are operated by the franchise of Apple. The growth in the business of Apple results in the growth of partners also. With the help of innovation, partners can be managed as they are also interested in future business with Apple. Therefore it is an innovative strategy that is implemented by Apple for its partner.
Distribution
For no shortage in the market Apple over-invest in the supply chain. Products of Apple are easily available in the market because of innovative supply chain strategy. The demand for pre analysed of the products of Apple. According to the demand-supply of the products are accomplished (Wijaya, 2013).
Nurturing talent among employees
Employees of this organisation help each other in the critical situation regarding Technology. This helps in the development of the technology at Apple. With the help of this coordination, Apple is easily able to manage their staff. When Steve Jobs was the CEO of Apple he always nurtures his employees to take their talent out for the products. The motivation strategy is always followed by since or for the employees of Apple.
HR as executive
The HR department of Apple is treated as an executive department. All the risk that is associated with apple is provided by the HR department of this organisation. Constructive measures that can be taken for mitigating the risk are also provided by the HR department. Effective communication is managed between the employees by this department so that coordination among the employees can be increased (Ngo & O’cass, 2013). This results in effective innovation for the organisation. The human resource of this organisation designed an innovative system. the creativity can be harness among the employees because of the innovative system used by this organisation (Khan, et. al., 2015).
Push and pull influence innovation in Apple
Reaching to customers as push factor
Apple talks to their customer in their language. This helps the customer to feel close to the Apple. This is the strategy that is implemented by Apple attracts a large number of customer. This provides a better customer experience with the customers of Apple. The advertisement for Apple products are made that prospects emotions. The emotion of the common man is in the advertisement of Apple products (Apple, 2018). This creates a sense of belonging among the customers. Influencer is helpful in targeting the relevant audience regarding the products of Apple. The marketing that is accomplished by this organisation is done with the product story. The marketing is done in a simple way that is easily understood by any customer (Apple, 2018). This simplicity helps in targeting the customer easily.
Venture acquisition as pull factor for innovation
The steps are taken as pull factor by the Apple is venture acquisition. The innovation can be bringing in the organisation that will easily attracts the customers. Apple purchased many of the organisations for organising resources and creating innovation. In 1998 network innovation was purchased by Apple. This helps the Apple to get Intel processor in their product. In 1998 Macromedia’s intellectual property was acquired by Apple. At the same time employee team that developed video editing program was also acquired by Apple to establish itself in the video editing market.
The 2005 acquisition with Finger Works helps this organisation in the touch technology by acquiring this company various patents was also acquired by Apple that is used in the iPhone and iPad. The digital advertisement Campaign of the Apple is fulfilled by acquiring the Quattro wireless in 2010. The advertisement in the mobile device can be possible with the help of this organisation. This helps the apple in fulfilling the advertisement strategy. The software application market is based on advertisement and their utility (Innovarsity.com, 2018).
Venture acquisition help in managing the present innovation of Apple. A new innovation in this organisation is also created because of venture acquisition. This new innovation can be managed by that organisation from which acquisition is done by Apple. In this way, various resources that are necessary to develop for Apple can be possible with an acquisition. An acquisition is also creating sustainability for apple. The acquisition helps in the development of new products with effective management of the resources that are needed in developing those products. This development is possible with the help of acquisition only.
Conclusion
Innovation is very necessary for any organisation. Innovation brings new ideas and technologies in the organisation. Innovation also helps in facilitating the business of organisations like apple. With the help of innovative offerings can be made to the customer easily. The method of reaching to the customers can be made simple with the help of innovation. Easy management of the organisational resources can be possible with the help of innovation. Innovation is helpful in creating business growth. This business growth provides a good amount of profits to Apple. The value added to the business can be created with the help of innovation.
References
Apple. 2018. Marketing Resources and Identity Guidelines [Online]. innovarsity.com. Available at: https://developer.apple.com/app-store/marketing/guidelines/. [Accessed: 4 December 2018].
Björkdahl, J. and Holmén, M., 2013. Business model innovation–the challenges ahead. International Journal of Product Development, 18(3/4), pp.213-225.
Cheng, C.C., Yang, C.L. and Sheu, C., 2014. The link between eco-innovation and business performance: a Taiwanese industry context. Journal of Cleaner Production, 64, pp.81-90.
Gershon, R.A., 2013. Digital media innovation and the Apple iPad: Three perspectives on the future of computer tablets and news delivery. Journal of Media Business Studies, 10(1), pp.41-61.
Heracleous, L., 2013. Quantum strategy at apple inc. Organizational Dynamics, 42(2), pp.92-99.
innovarsity.com. 2018. Apple’s Systemic Approach To Innovation. [Online] innovarsity.com. Available at: http://www.innovarsity.com/coach/bp_innovation_strategies_apple.html. [Accessed: 4 December 2018].
Kapoor, R. and Agarwal, S., 2017. Sustaining superior performance in business ecosystems: Evidence from application software developers in the iOS and Android smartphone ecosystems. Organization Science, 28(3), pp.531-551.
Khan, U.A., Alam, M.N. and Alam, S., 2015. A critical analysis of the internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), pp.955-961.
Lehman, G. and Haslam, C., 2013, December. Accounting for the Apple Inc business model: Corporate value capture and dysfunctional economic and social consequences. In Accounting forum (Vol. 37, No. 4, pp. 245-248). Elsevier.
Ngo, L.V. and O’cass, A., 2013. Innovation and business success: The mediating role of customer participation. Journal of Business research, 66(8), pp.1134-1142.
Shuler, C., Levine, Z. and Ree, J., 2012. iLearn II An analysis of the education category of Apple’s app store.
Wijaya, I.M., 2013. The influence of brand image, brand personality and brand awareness on consumer purchase intention of Apple smartphone. Journal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 1(4).
Executive summary
In this assessment measurement of performance for the Samsung is accomplished. The strategies that are involved in the performance management by the Samsung are also analysed. The stakeholders are the main entity of any organisation. The methods that are involved by the Samsung for the management of risk associated with this organisation are also determined in this assessment. The financial performance that is accomplished by this organisation is described in this assessment. The perception of the customers regarding the performance of Samsung is also presented in this assessment. The recommendations that are necessary for the improvement of performance are investigated in this assessment.
Introduction
Performance management is a whole new aspect which starts as soon as an employee enters the organization and ends with the resignation of the employee. Performance management facilitates communication with its employee and helps the organization in measuring the performance of the employee and appraising the employee. Samsung manages the performance of its employee and provides them with incentives to them motivated towards the work. Performance management not only includes the employee performance but also how the organization creates and maintains their stability in the market. How they manage their risk and communicate with their stakeholders. How they react to the feedback and perspective of customers and clients (Chow and Gender, 2015).
It also, makes sure that the operation of Samsung is running effectively and the evaluation and of the performance is done accurately. In the end, the deviations in the performance are analyzed and proper implementation towards it is made.
Organizational performance management and performance measurement
Samsung is a Korean based company offering services to its customers and job opportunity to its employees for 50 years approx. Samsung is the second largest information technology company in terms of revenue in the world. Samsung deals with electronic items like mobiles, laptops, television, refrigerators, etc. The organizational performance management system is the process of analyzing, evaluating and managing the performance of the organization throughout the year. By using the previous data and information, the performance of Samsung’s employee is measured so that the appraisal to the employee could be given. It helps in analyzing that whether the performance of the employee matches with the performance meters set for the employee, and if not, corrections to the policies are made (Grant, 2016).
(Figure: Performance management)
(Source: Grant, 2016)
Performance management is an art of creating an environment where the employees could work with their best of abilities. It focuses on evaluating the performance rate of the employees and helps in communicating with them. It starts when an employee enters an organization and continues until he left the organization. Performance management and performance measurement are related to each other. Samsung makes sure that its employee is working in a coordinated environment where their thoughts are always given a place and they are also motivated for their achievements so that they could give their best performances. Samsung uses the pricing strategy for its employee. Towards the best contribution, the employees are awarded and appraised. Many training and development programs are running in a year and the grievances of the employees are communicated so that they could feel the safe and important in the organization (Chadwick, et. al., 2015).
Performance management helps in the welfare of the employee and thus, develops the skills and standards of its employees. By motivating and waking their initiatives, Samsung could be able to gain effective performance of its employee and thus, the organization. Good performance results in optimum utilization of its resources and help in achieving its objectives effectively and efficiently and thus, helping Samsung, in establishing good brand value in the market.
Communicating performance to stakeholders
Communication is the most important aspect of any business. Samsung makes sure that it communicates with each stakeholder so that it could be able to build good relationships with them.
| Stakeholders |
Promotional schemes |
Communicating ways |
Expectations |
| Employees |
Samsung hires and cultivates talented and skilled people and provides them with adequate training and development throughout the year. It provides time to time performance appraisal to them and provides them with good incentives. |
Multidimensional evaluation,
VOE. |
The welfare of the employees, their development rate, appraisal, and fair compensation. |
| Shareholders |
Samsung understands the importance of its stakeholders and regularly communicates with them via shareholders meetings and minute maids. It helps the shareholders in knowing the issues and also the achievements of the organization, thus helping Samsung in establishing good relationships. |
IR activities,
Meetings of shareholders (Hatch, 2018). |
Cooperation with them, increasing the values of shareholders. |
| Customers |
Samsung values its customers and understands the fact that the customer is its ultimate aim. They aim at providing maximum satisfaction to its employees, by keeping regular communication procedure with its clients. It welcomes the feedback of its customers and always works on it. It treats the customer as part of its organization and adopts new schemes for providing benefits to its employees. |
CS surveys meetings, VOC. |
Increases customer satisfaction and support, aids on providing the protection to the privacy of its customers. |
| Government |
Samsung fulfills all the rules and regulations of the government and maintains healthy relationships with the central power. Through, seminar and conferences, it provides the performance o the company and keeps transparency with the government. It relays on the fact that, with the mutual relationship both the party could grow together. |
Seminars, conferences,
Magazines and newspaper supplies (Basole, 2016). |
Management of governable ethics, legal compliance. |
Risk management
From the recent reports and data, it could be seen that the customers are not satisfied with the performance of the Samsung. Many reports regarding the explosions of the phones have been seen. Hanging on the phone is the main and the most accepted problem in the Samsung products.
(Figure: Risk Management)
(Source – Fainshmidt, et. al., 2016)
Samsung should try to minimize it. Risk management helps the company in managing its risks and moving ahead. Risks directly aim at the downfall of the company. Risk management helps the company in identifying the risks in the company and helps the company in framing new laws and policies for the company so that it could be able to minimize it and rise in the market (Fainshmidt, et. al., 2016).
Quality management and improvement
Quality is something which should not be compromised. Samsung aims at providing quality products at reasonable rates. Samsung says that quality should never be ignored for quantity. By providing qualitative services to its customers, it provides satisfaction to its client and thus, increases its business. Quality management involves the activities where the quality of the product or service is measured and compared to its standards sets, if any deviations occur in that, new protocols are formed, and a better product is supplied (Gruber, et. al., 2015).
Samsung works on achieving excellent quality products so that it could outshine in the market. Samsung deals in electronics items and compromising the quality in this fields leads to the losses and no interest from the customer because of the competition in the market. To gain a successful business, Samsung makes sure that all its operations are qualitative and the work is going on effectively and efficiently.
Financial performance
Samsung has stable financial resources and is the highest revenue earning company in the sector. It aims at quality products at affordable prices which helps in generating customers for the company and thus, helping in increasing revenues of the company. Samsung has achieved able financial goals and is capable of achieving them. Financial performance helps to measure and to maintain the policies and operation of the firm in a year. From the data and information, available it could be seen that revenue of Samsung is increasing year by year and is becoming the top competition for the well-established firms like Apple. In the past years, some of its products saw the downfall in the market, but overall Samsung is working for uplifting its company’s brand and is establishing an excellent track for achieving its financial objectives (Arora, et. al., 2015).
Customer and client perspective
The customer is the ultimate resources of the company. The company is made and ran for its customer. What a customer thinks about the company, matter a lot. Samsung makes sure that its brand image and identity is good in the market. It makes steps for analyzing that its customers are getting what it is conveyed to them and are not framing negative perspective about the company. It is important to maintain healthy relationships with the customers so that, the company could benefit through mouth advertisement. Having a positive mindset of the company, company frames new customers in the market and is able to provide satisfaction to its customers (Ramadan, et. al., 2017).
Samsung achieves mutual relationships with its clients by providing them with high-quality services through a number of channels, previously, customer centers were contacted only when, a problem arises, but now, a minute problem, customer call the call centers and figures out the solution. Samsung should aim at providing excellent customer care services to its customers and gain a positive image in the market.
People Perspective
What brand image a company is forming in the market tells a lot about the performance of the company.
Samsung’s objective is not limited to selling or promoting a product or fixing the product but also; it aims at establishing good relationships with its employees. By building interrelationships, Samsung caters at solving the problems of the customer and providing them with fuller satisfaction. Samsung also aims at providing doorstep services to its customers so that, they could not face problems of loading the products to the repair shops and bear the costs. By delivering amazing services, it helps the company in getting more investments in the wide range of its products by its customer and thus, creating huge profits for the company.
Samsung is well known for its quality products and also at reasonable prices and helps the company in generating new customers every year (Lin, 2017).
Samsung is not only customer oriented company but also focuses on the welfare of its employees. It provides time to time appraisal to its employee and creates good brand value in the market. By giving good incentives and recognition to the employees, the company is able to gain a positive perspective from the people and thus, it will be able to gain social approval.
Implementation issues
Samsung is growing day by day and is adopting new technological advancements in its products. With the fashionable mobile phone to smart television, it is taking over the market. As it is providing amazing products and service to the customer it is charging it from the customer for the same. But, customers face a lot of problems in the product of Samsung and especially in its mobile ranges (Cai, et. al., 2018).
Mobile comes with a handy feature and is now a replica of many activities. But Samsung is compromising in the quality of the product. Problems like battery poor life glitches like bad applications performance upset the customers who are paying the high prices for the same. A most common problem that is seen in the products of Samsung is mobile hanging and automated rebooting. It disturbs the tasks of the customers and impacts the performance of the overall company (Grant, 2016).
According to the technology, Samsung is adopting new advancements, but the portable charging mode is not up to the expectations which make customers, dissatisfied. This issue makes it hard for the company to maintain its performance and harms the image of the company too.
Recommendations for improvement
Although, the Samsung is doing good in the market, its Mobile and tablets range, is not working much in the market due to its bad performance and many other reports like an explosion of the handset and of course, the biggest problem hanging and the battery life of the mobile phone. As a result, decreasing market share of Samsung could be seen and also, dissatisfaction on the side of the customer could be observed.
For grading up the market share and providing the satisfaction to the customer, following are the recommendations on which Samsung could act upon:
- Improve battery life: Mobile runs in the battery and if the battery is not sufficient then, the problems will arise gradually. The customer now a day’s do not use the phone only for calling or text but also for several other activities which demand the fuller battery performance of the model. Samsung should focus on increasing the battery effectiveness of the product so that customer could be kept loyal to the company (Hatch, 2018).
- Cutting down on new ranges of the particular product or cutting back on models: Samsung has this habit of releasing a new phone with advance feature every now and then, which upsets the customer as its possession seems to be outdated and newer one seems to be updated which makes the customer worried about the cost and performance. New and updated products symbolize the social status and market value of the customer and the outdated one declines it.
- Explosions of the phone should be treated: Customers face a huge problem of explosion due to heating up of the mobile phone. A mobile phone completes works or operates on the software and hardware of the product and the heating up of mobile hardware’s results in the heating and blasting up of phones. Samsung should aim at the development of good quality software having excellent performance and its heating and blasting problem should also be fixed (Budhraja, et. al., 2017).
- Improvement in the software: Samsung should focus on gaining the advantage from its competitors. Samsung’s software is having this problem of hanging and rebooting and which needs to be fixed. Investments on the newer feature introduction in the phone should be focused so that the newer customers could be attracted.
Conclusion
From the above report, it could be concluded that the measurement of the performance of the organization and the employee is necessary for an organization. Performance management helps the organization in knowing their performance throughout the year and also, helps in knowing where the deviations are and where the corrections are needed. It helps the companies in managing risks and other uncertainties. It facilitates the communication gap between the employees and its stakeholders. It helps the company in appraising the performance of its employees and helps in taking many other decisions regarding the value and their feedback of the people. It helps in establishing interaction between the providers and customers and facilitates the facility of quick feedback. Most importantly, performance management not only measures and manages the performance but also helps in improving the quality of the performance of both employee and organization.
References
Arora, A., Arora, A.S. and Sivakumar, K., 2016. Relationships among supply chain strategies, organizational performance, and technological and market turbulences. The International Journal of Logistics Management, 27(1), pp.206-232.
Basole, R.C., 2016. Topological analysis and visualization of interfirm collaboration networks in the electronics industry. Decision Support Systems, 83, pp.22-31.
Budhraja, V.S., Dyer, J.D. and Morales, C.A.M., Electric Power Group LLC, 2017. Real-time performance monitoring and management system. U.S. Patent 7,233,843.
Cai, J., Liu, X., Xiao, Z. and Liu, J., 2018. Improving supply chain performance management: A systematic approach to analyzing iterative KPI accomplishment. Decision support systems, 46(2), pp.512-521.
Chadwick, C., Super, J.F. and Kwon, K., 2015. Resource orchestration in practice: CEO emphasis on SHRM, commitment‐based HR systems, and firm performance. Strategic Management Journal, 36(3), pp.360-376.
Chow, J. and Gender, T.K., Honeywell International Inc, 2015. Flash memory management system and method utilizing multiple block list windows. U.S. Patent 6,895,464.
Fainshmidt, S., Pezeshkan, A., Lance Frazier, M., Nair, A. and Markowski, E., 2016. Dynamic capabilities and organizational performance: A meta‐analytic evaluation and extension. Journal of Management Studies, 53(8), pp.1348-1380.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Gruber, M., De Leon, N., George, G. and Thompson, P., 2015. Managing by design.
Hatch, M.J., 2018. Organization theory: Modern, symbolic, and postmodern perspectives. Oxford university press.
Lin, C.S., 2017. Untangling the relationship between strategic consistency and organizational performance: An empirical analysis of moderator variables. Journal of Management & Organization, 23(4), pp.483-503.
Ramadan, B.M., Dahiyat, S.E., Bontis, N. and Al-Dalahmeh, M.A., 2017. Intellectual capital, knowledge management and social capital within the ICT sector in Jordan. Journal of Intellectual Capital, 18(2), pp.437-462.
| Property Id |
Market Price ($000) |
Sydney price Index |
Total number of square meters |
Age of house (years) |
| 1 |
971 |
95.4 |
348.2 |
2 |
| 2 |
971 |
90.0 |
336.1 |
3 |
| 3 |
966 |
97.9 |
335.0 |
9 |
| 4 |
965 |
135.7 |
328.2 |
10 |
| 5 |
964 |
121.1 |
316.8 |
14 |
| 6 |
958 |
136.7 |
309.1 |
12 |
| 7 |
955 |
141.3 |
308.9 |
8 |
| 8 |
952 |
89.8 |
307.7 |
14 |
| 9 |
948 |
183.9 |
306.8 |
13 |
| 10 |
944 |
94.6 |
300.4 |
6 |
| 11 |
932 |
96.7 |
299.2 |
5 |
| 12 |
931 |
90.1 |
295.7 |
8 |
| 13 |
925 |
65.5 |
293.0 |
7 |
| 14 |
921 |
147.3 |
292.7 |
7 |
| 15 |
920 |
122.2 |
292.5 |
10 |
| 16 |
917 |
183.0 |
292.0 |
4 |
| 17 |
915 |
120.9 |
291.3 |
11 |
| 18 |
913 |
70.8 |
289.8 |
9 |
| 19 |
912 |
144.0 |
287.8 |
4 |
| 20 |
908 |
108.7 |
281.9 |
11 |
| 21 |
905 |
125.6 |
281.1 |
7 |
| 22 |
902 |
76.5 |
280.4 |
8 |
| 23 |
893 |
110.6 |
280.1 |
7 |
| 24 |
893 |
91.8 |
277.5 |
12 |
| 25 |
885 |
116.5 |
277.3 |
6 |
| 26 |
885 |
104.1 |
277.3 |
15 |
| 27 |
885 |
124.1 |
275.0 |
14 |
| 28 |
884 |
147.1 |
274.4 |
10 |
| 29 |
883 |
75.8 |
274.1 |
13 |
| 30 |
879 |
106.3 |
274.1 |
12 |
| 31 |
879 |
97.3 |
273.9 |
19 |
| 32 |
879 |
86.8 |
273.0 |
6 |
| 33 |
878 |
54.6 |
272.5 |
9 |
| 34 |
878 |
93.1 |
272.3 |
9 |
| 35 |
877 |
133.9 |
272.0 |
9 |
| 36 |
877 |
118.0 |
272.0 |
13 |
| 37 |
877 |
155.7 |
271.4 |
1 |
| 38 |
875 |
83.2 |
271.4 |
19 |
| 39 |
875 |
129.0 |
271.4 |
18 |
| 40 |
874 |
77.5 |
269.5 |
11 |
| 41 |
874 |
96.3 |
269.4 |
17 |
| 42 |
874 |
94.8 |
269.1 |
17 |
| 43 |
873 |
87.5 |
268.7 |
12 |
| 44 |
872 |
122.5 |
267.7 |
4 |
| 45 |
871 |
130.7 |
267.0 |
8 |
| 46 |
866 |
104.9 |
266.4 |
12 |
| 47 |
865 |
143.6 |
266.4 |
10 |
| 48 |
865 |
93.7 |
265.6 |
11 |
| 49 |
863 |
133.3 |
265.0 |
14 |
| 50 |
863 |
156.8 |
262.0 |
16 |
| 51 |
863 |
63.2 |
259.2 |
11 |
| 52 |
863 |
84.9 |
258.7 |
22 |
| 53 |
863 |
113.3 |
258.7 |
18 |
| 54 |
862 |
118.3 |
256.8 |
12 |
| 55 |
862 |
77.1 |
256.4 |
17 |
| 56 |
862 |
137.6 |
254.5 |
3 |
| 57 |
861 |
85.4 |
253.3 |
22 |
| 58 |
860 |
132.5 |
253.3 |
10 |
| 59 |
859 |
123.0 |
253.2 |
19 |
| 60 |
859 |
82.3 |
252.5 |
22 |
| 61 |
858 |
87.2 |
252.5 |
16 |
| 62 |
856 |
115.0 |
251.9 |
10 |
| 63 |
856 |
111.8 |
251.8 |
37 |
| 64 |
855 |
131.3 |
251.4 |
21 |
| 65 |
853 |
171.6 |
250.5 |
24 |
| 66 |
852 |
61.8 |
250.2 |
38 |
| 67 |
849 |
135.5 |
249.7 |
31 |
| 68 |
847 |
149.8 |
248.2 |
4 |
| 69 |
846 |
132.5 |
248.1 |
35 |
| 70 |
846 |
64.4 |
248.0 |
10 |
| 71 |
846 |
69.8 |
247.8 |
34 |
| 72 |
846 |
101.7 |
246.4 |
29 |
| 73 |
845 |
71.8 |
245.9 |
31 |
| 74 |
845 |
132.7 |
245.2 |
3 |
| 75 |
845 |
89.7 |
244.8 |
13 |
| 76 |
844 |
141.1 |
244.8 |
40 |
| 77 |
843 |
123.5 |
244.2 |
33 |
| 78 |
843 |
73.4 |
243.6 |
27 |
| 79 |
842 |
84.9 |
242.9 |
10 |
| 80 |
842 |
113.4 |
242.9 |
39 |
| 81 |
842 |
70.6 |
242.5 |
14 |
| 82 |
841 |
101.5 |
242.3 |
19 |
| 83 |
840 |
66.6 |
242.3 |
12 |
| 84 |
839 |
142.2 |
242.0 |
25 |
| 85 |
839 |
117.6 |
241.6 |
19 |
| 86 |
839 |
94.1 |
241.6 |
25 |
| 87 |
839 |
171.0 |
241.1 |
34 |
| 88 |
838 |
78.0 |
241.0 |
17 |
| 89 |
838 |
124.3 |
240.4 |
25 |
| 90 |
838 |
82.9 |
239.6 |
5 |
| 91 |
837 |
85.3 |
239.4 |
30 |
| 92 |
837 |
136.3 |
239.2 |
22 |
| 93 |
836 |
110.3 |
239.2 |
3 |
| 94 |
836 |
85.3 |
238.9 |
2 |
| 95 |
835 |
137.4 |
238.7 |
24 |
| 96 |
835 |
90.9 |
238.6 |
34 |
| 97 |
835 |
79.6 |
238.5 |
15 |
| 98 |
834 |
79.8 |
237.3 |
53 |
| 99 |
834 |
67.1 |
236.9 |
30 |
| 100 |
834 |
153.1 |
236.7 |
16 |
| 101 |
833 |
79.3 |
236.0 |
23 |
| 102 |
833 |
111.5 |
235.8 |
34 |
| 103 |
833 |
133.5 |
235.2 |
12 |
| 104 |
832 |
139.9 |
235.0 |
18 |
| 105 |
832 |
93.2 |
235.0 |
1 |
| 106 |
832 |
117.6 |
234.9 |
13 |
| 107 |
831 |
98.0 |
234.6 |
24 |
| 108 |
831 |
94.0 |
234.4 |
10 |
| 109 |
831 |
92.1 |
234.4 |
22 |
| 110 |
830 |
65.5 |
234.4 |
5 |
| 111 |
829 |
84.2 |
234.4 |
40 |
| 112 |
829 |
113.8 |
234.3 |
28 |
| 113 |
828 |
91.2 |
234.2 |
32 |
| 114 |
828 |
148.4 |
233.9 |
6 |
| 115 |
827 |
99.0 |
233.8 |
28 |
| 116 |
827 |
112.9 |
233.8 |
15 |
| 117 |
827 |
99.8 |
233.0 |
4 |
| 118 |
827 |
69.8 |
232.6 |
10 |
| 119 |
826 |
107.1 |
232.5 |
8 |
| 120 |
825 |
90.8 |
232.4 |
12 |
| 121 |
824 |
92.2 |
232.2 |
1 |
| 122 |
823 |
136.3 |
231.8 |
24 |
| 123 |
823 |
126.4 |
231.7 |
15 |
| 124 |
822 |
87.4 |
231.2 |
1 |
| 125 |
822 |
90.3 |
231.2 |
6 |
| 126 |
822 |
90.8 |
231.0 |
45 |
| 127 |
822 |
168.1 |
230.5 |
44 |
| 128 |
820 |
110.8 |
230.3 |
3 |
| 129 |
819 |
131.7 |
230.0 |
1 |
| 130 |
819 |
112.3 |
229.6 |
9 |
| 131 |
818 |
134.1 |
229.3 |
7 |
| 132 |
817 |
105.6 |
229.0 |
38 |
| 133 |
816 |
130.9 |
228.6 |
15 |
| 134 |
815 |
60.6 |
228.5 |
1 |
| 135 |
815 |
131.0 |
228.1 |
31 |
| 136 |
815 |
78.9 |
228.0 |
32 |
| 137 |
814 |
109.1 |
227.7 |
10 |
| 138 |
812 |
81.6 |
227.5 |
24 |
| 139 |
812 |
47.1 |
227.5 |
29 |
| 140 |
811 |
125.0 |
226.8 |
20 |
| 141 |
810 |
85.6 |
226.7 |
19 |
| 142 |
810 |
104.5 |
226.3 |
19 |
| 143 |
810 |
160.8 |
226.0 |
46 |
| 144 |
810 |
124.2 |
225.6 |
19 |
| 145 |
809 |
115.1 |
225.5 |
26 |
| 146 |
808 |
126.9 |
225.5 |
18 |
| 147 |
807 |
80.7 |
225.5 |
23 |
| 148 |
807 |
89.5 |
225.1 |
9 |
| 149 |
806 |
63.5 |
224.7 |
22 |
| 150 |
805 |
126.1 |
224.5 |
2 |
| 151 |
805 |
149.0 |
224.1 |
9 |
| 152 |
804 |
94.4 |
223.8 |
8 |
| 153 |
804 |
96.9 |
223.7 |
18 |
| 154 |
803 |
83.1 |
223.1 |
20 |
| 155 |
801 |
131.5 |
223.1 |
15 |
| 156 |
800 |
79.0 |
223.1 |
17 |
| 157 |
799 |
108.0 |
222.8 |
11 |
| 158 |
798 |
67.2 |
222.7 |
15 |
| 159 |
797 |
69.3 |
222.7 |
8 |
| 160 |
797 |
110.3 |
222.4 |
24 |
| 161 |
796 |
90.4 |
221.5 |
18 |
| 162 |
796 |
109.5 |
221.3 |
9 |
| 163 |
796 |
108.1 |
221.2 |
13 |
| 164 |
795 |
115.3 |
220.8 |
1 |
| 165 |
795 |
98.2 |
220.8 |
6 |
| 166 |
794 |
133.0 |
220.5 |
10 |
| 167 |
793 |
103.5 |
220.2 |
15 |
| 168 |
793 |
79.6 |
220.2 |
5 |
| 169 |
793 |
110.2 |
219.8 |
22 |
| 170 |
792 |
45.5 |
219.6 |
8 |
| 171 |
792 |
61.3 |
219.3 |
23 |
| 172 |
792 |
111.6 |
218.8 |
2 |
| 173 |
791 |
106.6 |
218.3 |
12 |
| 174 |
791 |
100.8 |
217.4 |
34 |
| 175 |
790 |
100.9 |
217.3 |
46 |
| 176 |
790 |
91.8 |
217.3 |
9 |
| 177 |
789 |
117.5 |
216.9 |
23 |
| 178 |
789 |
74.9 |
216.5 |
0 |
| 179 |
789 |
85.5 |
216.4 |
16 |
| 180 |
789 |
122.1 |
215.7 |
37 |
| 181 |
788 |
129.0 |
215.6 |
13 |
| 182 |
788 |
38.6 |
215.6 |
45 |
| 183 |
787 |
99.5 |
215.2 |
16 |
| 184 |
787 |
78.0 |
215.1 |
30 |
| 185 |
786 |
154.9 |
215.0 |
20 |
| 186 |
785 |
112.5 |
214.5 |
2 |
| 187 |
784 |
121.5 |
214.3 |
1 |
| 188 |
784 |
100.8 |
214.3 |
18 |
| 189 |
783 |
118.8 |
213.8 |
16 |
| 190 |
781 |
132.3 |
213.5 |
1 |
| 191 |
781 |
111.1 |
213.4 |
8 |
| 192 |
780 |
167.6 |
212.9 |
5 |
| 193 |
780 |
56.5 |
212.8 |
1 |
| 194 |
780 |
90.2 |
212.8 |
3 |
| 195 |
779 |
83.7 |
212.6 |
14 |
| 196 |
779 |
103.7 |
212.4 |
32 |
| 197 |
779 |
116.9 |
211.8 |
13 |
| 198 |
778 |
129.4 |
211.3 |
8 |
| 199 |
778 |
139.4 |
211.1 |
30 |
| 200 |
778 |
106.2 |
211.0 |
48 |
| 201 |
777 |
97.0 |
211.0 |
7 |
| 202 |
776 |
109.0 |
210.3 |
27 |
| 203 |
776 |
130.6 |
209.7 |
21 |
| 204 |
776 |
127.2 |
209.6 |
18 |
| 205 |
776 |
168.2 |
209.6 |
34 |
| 206 |
775 |
102.4 |
209.5 |
8 |
| 207 |
775 |
76.3 |
209.3 |
20 |
| 208 |
774 |
145.8 |
209.3 |
15 |
| 209 |
774 |
103.5 |
209.1 |
31 |
| 210 |
773 |
107.2 |
208.7 |
23 |
| 211 |
773 |
86.9 |
208.4 |
1 |
| 212 |
772 |
115.4 |
208.2 |
30 |
| 213 |
772 |
102.7 |
208.2 |
19 |
| 214 |
772 |
120.4 |
207.4 |
33 |
| 215 |
772 |
128.2 |
207.1 |
53 |
| 216 |
771 |
95.9 |
207.1 |
11 |
| 217 |
771 |
197.1 |
206.8 |
7 |
| 218 |
771 |
81.2 |
206.6 |
24 |
| 219 |
771 |
110.9 |
206.1 |
2 |
| 220 |
770 |
103.9 |
205.4 |
30 |
| 221 |
770 |
140.8 |
204.7 |
11 |
| 222 |
770 |
135.6 |
204.0 |
24 |
| 223 |
768 |
103.3 |
203.7 |
27 |
| 224 |
768 |
54.2 |
203.7 |
10 |
| 225 |
768 |
23.1 |
203.6 |
31 |
| 226 |
768 |
105.5 |
203.2 |
28 |
| 227 |
767 |
133.8 |
203.2 |
27 |
| 228 |
766 |
64.5 |
203.2 |
3 |
| 229 |
766 |
76.9 |
202.2 |
8 |
| 230 |
765 |
152.1 |
201.7 |
17 |
| 231 |
764 |
56.7 |
201.6 |
31 |
| 232 |
763 |
130.8 |
201.5 |
9 |
| 233 |
763 |
81.3 |
201.4 |
25 |
| 234 |
763 |
118.0 |
201.0 |
18 |
| 235 |
763 |
113.7 |
200.9 |
20 |
| 236 |
762 |
114.6 |
200.3 |
19 |
| 237 |
762 |
121.3 |
200.1 |
19 |
| 238 |
761 |
83.5 |
200.0 |
34 |
| 239 |
761 |
132.7 |
200.0 |
16 |
| 240 |
759 |
100.3 |
199.5 |
25 |
| 241 |
759 |
70.6 |
199.3 |
23 |
| 242 |
759 |
59.2 |
198.5 |
42 |
| 243 |
759 |
85.2 |
198.2 |
36 |
| 244 |
758 |
127.0 |
197.6 |
8 |
| 245 |
756 |
142.7 |
197.1 |
1 |
| 246 |
755 |
76.7 |
196.8 |
29 |
| 247 |
755 |
65.6 |
196.4 |
20 |
| 248 |
754 |
146.6 |
196.4 |
17 |
| 249 |
754 |
82.1 |
196.3 |
3 |
| 250 |
754 |
164.9 |
196.1 |
20 |
| 251 |
754 |
126.3 |
196.0 |
27 |
| 252 |
754 |
82.2 |
195.7 |
25 |
| 253 |
753 |
118.5 |
195.6 |
12 |
| 254 |
752 |
95.3 |
195.5 |
9 |
| 255 |
752 |
109.5 |
195.1 |
6 |
| 256 |
751 |
114.3 |
195.1 |
1 |
| 257 |
751 |
75.4 |
194.2 |
35 |
| 258 |
751 |
140.2 |
194.1 |
41 |
| 259 |
749 |
110.0 |
193.9 |
33 |
| 260 |
749 |
97.2 |
193.8 |
14 |
| 261 |
748 |
107.4 |
193.6 |
31 |
| 262 |
748 |
87.5 |
193.5 |
20 |
| 263 |
748 |
59.6 |
193.5 |
31 |
| 264 |
748 |
65.1 |
193.4 |
17 |
| 265 |
748 |
89.9 |
193.2 |
37 |
| 266 |
748 |
105.4 |
193.2 |
10 |
| 267 |
747 |
129.1 |
193.1 |
38 |
| 268 |
747 |
120.9 |
192.9 |
8 |
| 269 |
747 |
141.2 |
192.9 |
14 |
| 270 |
746 |
87.0 |
192.6 |
41 |
| 271 |
746 |
121.0 |
191.7 |
26 |
| 272 |
745 |
99.4 |
191.3 |
0 |
| 273 |
745 |
126.5 |
191.2 |
26 |
| 274 |
745 |
88.4 |
190.4 |
4 |
| 275 |
744 |
103.4 |
189.7 |
13 |
| 276 |
743 |
94.6 |
189.3 |
3 |
| 277 |
742 |
65.5 |
188.9 |
17 |
| 278 |
741 |
60.1 |
188.7 |
16 |
| 279 |
741 |
97.9 |
188.6 |
1 |
| 280 |
741 |
134.7 |
188.3 |
33 |
| 281 |
740 |
107.1 |
188.2 |
30 |
| 282 |
739 |
93.4 |
188.0 |
25 |
| 283 |
739 |
72.4 |
187.3 |
2 |
| 284 |
738 |
144.3 |
187.3 |
35 |
| 285 |
737 |
75.8 |
185.9 |
23 |
| 286 |
735 |
66.7 |
185.5 |
7 |
| 287 |
735 |
93.5 |
185.4 |
32 |
| 288 |
735 |
65.3 |
185.2 |
24 |
| 289 |
735 |
153.5 |
184.7 |
18 |
| 290 |
734 |
103.6 |
184.4 |
39 |
| 291 |
734 |
159.1 |
183.8 |
32 |
| 292 |
732 |
73.9 |
183.8 |
21 |
| 293 |
732 |
102.8 |
183.4 |
26 |
| 294 |
732 |
81.1 |
183.3 |
6 |
| 295 |
732 |
141.0 |
182.3 |
28 |
| 296 |
731 |
163.0 |
182.3 |
8 |
| 297 |
731 |
68.8 |
182.3 |
25 |
| 298 |
730 |
137.7 |
182.2 |
25 |
| 299 |
730 |
124.9 |
182.1 |
28 |
| 300 |
730 |
78.2 |
181.1 |
19 |
| 301 |
728 |
144.1 |
180.4 |
5 |
| 302 |
728 |
103.2 |
179.2 |
27 |
| 303 |
728 |
119.7 |
178.9 |
21 |
| 304 |
727 |
79.2 |
178.7 |
14 |
| 305 |
726 |
124.0 |
178.6 |
31 |
| 306 |
726 |
132.9 |
178.4 |
3 |
| 307 |
725 |
141.3 |
178.2 |
0 |
| 308 |
724 |
107.8 |
178.2 |
9 |
| 309 |
723 |
77.1 |
177.7 |
12 |
| 310 |
722 |
36.2 |
177.6 |
4 |
| 311 |
721 |
19.8 |
177.5 |
17 |
| 312 |
720 |
186.3 |
177.3 |
12 |
| 313 |
720 |
137.6 |
177.1 |
11 |
| 314 |
719 |
149.2 |
176.3 |
30 |
| 315 |
717 |
134.5 |
176.3 |
20 |
| 316 |
717 |
24.8 |
175.2 |
29 |
| 317 |
717 |
114.7 |
174.9 |
26 |
| 318 |
716 |
64.3 |
174.8 |
18 |
| 319 |
714 |
65.4 |
174.7 |
10 |
| 320 |
714 |
167.5 |
174.4 |
35 |
| 321 |
712 |
106.8 |
174.2 |
17 |
| 322 |
712 |
123.7 |
174.0 |
37 |
| 323 |
712 |
67.0 |
173.8 |
11 |
| 324 |
710 |
108.2 |
173.2 |
26 |
| 325 |
710 |
118.8 |
172.9 |
25 |
| 326 |
710 |
108.4 |
172.8 |
29 |
| 327 |
708 |
123.9 |
172.7 |
31 |
| 328 |
707 |
85.6 |
172.6 |
40 |
| 329 |
704 |
154.7 |
172.0 |
7 |
| 330 |
704 |
118.8 |
169.6 |
11 |
| 331 |
702 |
108.2 |
168.9 |
16 |
| 332 |
702 |
91.1 |
167.7 |
12 |
| 333 |
702 |
96.0 |
166.9 |
15 |
| 334 |
700 |
50.3 |
165.3 |
6 |
| 335 |
699 |
107.4 |
164.8 |
21 |
| 336 |
698 |
105.5 |
164.7 |
26 |
| 337 |
697 |
108.2 |
164.7 |
13 |
| 338 |
696 |
132.7 |
164.6 |
34 |
| 339 |
694 |
138.2 |
164.0 |
7 |
| 340 |
691 |
113.1 |
164.0 |
27 |
| 341 |
691 |
130.2 |
163.2 |
4 |
| 342 |
691 |
63.1 |
163.0 |
12 |
| 343 |
690 |
63.6 |
162.6 |
0 |
| 344 |
689 |
73.6 |
162.3 |
24 |
| 345 |
689 |
135.2 |
160.6 |
20 |
| 346 |
688 |
85.9 |
160.4 |
26 |
| 347 |
688 |
101.2 |
159.9 |
0 |
| 348 |
687 |
63.7 |
159.8 |
2 |
| 349 |
686 |
97.2 |
159.4 |
9 |
| 350 |
684 |
119.4 |
159.2 |
13 |
| 351 |
683 |
140.2 |
158.7 |
1 |
| 352 |
682 |
164.7 |
156.0 |
17 |
| 353 |
681 |
148.3 |
155.9 |
46 |
| 354 |
681 |
84.0 |
155.8 |
12 |
| 355 |
680 |
111.1 |
155.3 |
14 |
| 356 |
678 |
81.8 |
154.4 |
54 |
| 357 |
677 |
122.9 |
154.2 |
8 |
| 358 |
673 |
98.4 |
153.7 |
22 |
| 359 |
673 |
115.1 |
152.8 |
34 |
| 360 |
669 |
87.4 |
152.3 |
27 |
| 361 |
667 |
135.0 |
152.0 |
33 |
| 362 |
667 |
120.4 |
150.6 |
21 |
| 363 |
662 |
87.9 |
149.8 |
5 |
| 364 |
661 |
100.4 |
149.7 |
19 |
| 365 |
660 |
107.4 |
147.4 |
17 |
| 366 |
659 |
103.4 |
144.9 |
20 |
| 367 |
659 |
141.8 |
143.6 |
30 |
| 368 |
658 |
120.9 |
143.3 |
33 |
| 369 |
655 |
70.6 |
143.0 |
18 |
| 370 |
654 |
119.0 |
142.7 |
13 |
| 371 |
654 |
63.5 |
141.3 |
30 |
| 372 |
652 |
120.9 |
140.7 |
13 |
| 373 |
651 |
140.1 |
140.7 |
7 |
| 374 |
648 |
138.3 |
139.6 |
34 |
| 375 |
647 |
133.7 |
137.6 |
33 |
| 376 |
647 |
101.3 |
137.4 |
8 |
| 377 |
647 |
134.1 |
133.7 |
20 |
| 378 |
645 |
118.2 |
130.7 |
10 |
| 379 |
644 |
103.6 |
130.3 |
19 |
| 380 |
642 |
67.9 |
129.1 |
22 |
| 381 |
638 |
113.1 |
125.5 |
1 |
| 382 |
637 |
144.8 |
124.2 |
30 |
| 383 |
636 |
93.8 |
123.1 |
21 |
| 384 |
635 |
165.5 |
122.6 |
12 |
| 385 |
630 |
154.3 |
122.2 |
18 |
| 386 |
625 |
123.0 |
119.4 |
21 |
| 387 |
625 |
81.2 |
118.3 |
0 |
| 388 |
621 |
88.1 |
117.9 |
9 |
| 389 |
615 |
86.6 |
117.8 |
31 |
| 390 |
613 |
25.7 |
111.0 |
0 |
| 391 |
611 |
107.3 |
110.8 |
7 |
| 392 |
607 |
86.8 |
110.6 |
4 |
| 393 |
606 |
76.3 |
109.4 |
6 |
| 394 |
601 |
135.0 |
109.1 |
6 |
| 395 |
599 |
81.8 |
106.7 |
15 |
| 396 |
597 |
48.0 |
104.9 |
11 |
| 397 |
594 |
123.1 |
103.3 |
25 |
| 398 |
574 |
92.6 |
103.2 |
28 |
| 399 |
549 |
103.0 |
101.1 |
21 |
| 400 |
541 |
72.5 |
84.7 |
31 |
| Sale Price |
|
|
| Land size |
Land size in Square meters
|
|
| Year Built |
|
|
Introduction
Accounting standards are the policies and the procedure that is developed by the Australian accounting standard board that helps in developing the rules and regulation in the company. The rules are applicable to the private as well as the public sectors of the company that are working and incorporated in Australia. Every company that has been working in Australia and listed or not listed on the Australian stock exchange has to follow the accounting standards that are developed in the sector and those which are applicable to the company. The standards help in building a good image and reputation of the company in front of other competitor companies. The company that is following the rules and regulations that are developed by the board helps in understanding the policies of the company. The investors also have trust in that company which is properly complying the rules and regulations.
Descriptions of Accounting Concepts
Accounting concepts refer to the rules and the regulations that are used for the purpose of recording and explanation of the transaction in the financial statements of the company. These are the use and incorporated in the public and the private sector companies and all the other amount of independent entities that are working in the Australian sector market. Accounting concepts help the investors and the other stakeholders to develop an opinion towards the company towards the process of governance. Accounting concepts help professionals to develop an understanding of the different concepts that are used in the business. It amounts to develop a good amount of knowledge in the company and the market area (Holland, 2016). The standards that are used by the BHP Billiton Limited to increase the reputation in the developed Australian market are as follows
- The company has maintained the standards that are for the presentation of the financial statements of the company in the proper format that is provided by the Australian board. The accounting standards developed for this purpose are the AASB 101 that helps to give the structure and content of the financial statements.
- The second concept that is used by the company is the AASB 102 that is for the purpose of the accounting of the inventories. It amounts to develop the cost of the inventories and also amount to determine the revenue of the company. It also helps in determining the net realizable value for the company. It defines the accounting treatment of inventories that are in the use of the company.
- The company also follows the standards AASB 1031 in respect of the materiality of the transaction developed in the company. The materiality depends on the size and the nature of the business that is carried out by the company. It helps in developing and making judgments regarding the decision and the presentation of the financial statements (Joubert, et. Al., 2017).
- The company also develops the standards AASB 1054 for the purpose of the additional disclosure in the company. The additional disclosure includes the report of the auditor and the other nature of the service that is undertaken by the company in development of the various activities.
- The company also follows the principles of AASB 1039 to develop the annual reporting that is consolidated for the subsidiaries of the BHP Billiton Limited. The preparation and the presentation also amount to develop various amount of disclosures in the company.
- The revenue recognition concepts are also used by the company to measure the fair value of the revenue or the amount of consideration that is received by the company. Revenue also helps in developing the risk and the rewards of the company that is to be based on the method of the delivery.
- The company also uses the concept of depreciation to calculate the amount of depreciation that is levied on the assets developed in the company. The amortization and the useful life of the asset also amount to calculate on this basis (Dakis, 2016).
Why changes have been incorporated in the new accounting standard for lease AASB 16?
The various changes have been incorporated in the accounting standard that is developed by the Australian board. The changes that are developed the new model of the lease in the different amount of companies on the balance sheet. It does not recognize the short-term lease and the lease on the low value of the assets developed by the company. The changes are developed and issued by the Australian board in February 2016 but it came in the action in the year 2019. This lease has developed a lot amount of changes in the Australian companies that are listed on the Australian stock exchange. The companies that are mostly affected by the changes in the lease concepts are the mining, aircraft and the other various industries of the company. The new standards have to be used by the company with the proper amount and knowledge and the guidance that is developed by the company. The standard helps in developing one or more accounting changes in the company and the companies also need to develop the various other implications before implementing this system in the organization. The company adapts this leasing system because it helps in increasing the lease liability of the company and helps to develop the various issues in the company in regards to the profitability (Chan & Ryan, 2013).
Real estate sector may be in the possession of the various different amount of the lease and the change in the accounting standard also impact the development that is relating to the change. Some points are very much stronger than it helps in developing the company with the various issues that are going to develop the company soon but some points are not classified under the lease. The various amount of lease effect the significant entities of the company and also the recognition will not be easy and effective. The recognition and the development of the new lease system that is developed by the board affect the performance indicators of the company in a negative way. The cash flow and the earnings of the company are mostly affected by the lease that is developed newly in the organisation. The principal and the amount of interest developed by the company will also amount to be affected by the new standards developed in place of the lease. The new development in the accounting system helps in revising the lease and minimize the impacts of the assets and the liabilities of the company (Brumm & Liu, 2019).
The new development in the standards gives the option to the company to measure the assets in respect of the liability developed in the company whereas in AASB 16 the asset should be measured in terms of the lease commencement of the company. The outstanding liability amounts to be considered by the company using the different rates of the borrowing that is developed by the company at the date of the transition. In the AASB 16 we have to develop the new project and other amounts of implementation for the company. The development of the new standards helps in early planning and preparation of the project for the company and the other amount of developments in the company. To avoid the consequences the contractual agreements need to be made in the development of the company and the other amount of methods in developing the company. These new standards also help in the tax relief developed by the company and maintaining the lease account separately by the company with the help of the developed standard (AASB, 2016).
Both the option either it is the old one or the new one it helps in reducing the net assets of the company and also helps in developing the borrowing rate of the company. The new lase developed by the Australian board does not affect the net asset of the company but it helps in reducing the profit of the company. This also helps the company give to receive a large amount of tax relief from the other situations of the company. The standards help in providing the relevant information that is developed in the manner of the lease and for the lease transactions of the company. The total expense developed after using the new standard that is developed for the purpose of the lease as compared to the other amount or the amount that is developed with the using of the old standard. It also impacts the financial position of the company that is the net assets and the other amount of assets and liabilities that amount to develop in the company. It may result in significant savings and the development and growth in the company in regard to the various other liabilities (Lease, 2019).
Summarise the key disclosure the company has made on its accounting for leases including on the transitional provision and effect of the transition to AASB 16 from AASB 117.
Asset under the lease results in developing the risk and rewards of the company and also the amount to capitalize the assets of the BHP Company. The lease assets of the company are treated same as that of the other assets of the company. The depreciation levying on the assets also amounts to be same and developed the accounting treatment on that basis only. The disclosure made by the company on the basis of the lease are as follows
- The financial lease of the company is included in the interest liability of the company that is showed in the balance sheet of the company under this heading and developed the calculation on that amount.
- The interest also amounts to show the constant rate of interest over the remaining period of the time when the company is amount to bear the lease amount on the interest of the company.
- The operating lease of the BHP Company are not capitalized and they are not treated as the capital expenditure of the company and also amount to include in the profit and loss statement of the company and also in the cash flow statement of the company (Potter, et. Al., 2013).
- The rental payments that are included in the lease amount to be charged on the straight-line basis it means same in every year. The other lease also amounts to be disclosed by the company but in the separate headings.
- Ongoing commitments are also disclosed by the BHP Company in the commitments that are developed by the company in the balance sheet of the company and also developed in the other amount by the company.
These are some of the disclosures that are made by the company in which the company undertakes the new amount of lease in the process of developing the lease in the financial statements of the company. Every lease of the company is different but the new standard that is developed on the lease will affect the most by the mining companies that are the BHP Company of Australia. The various amount of transitional relief is developed by the company on behalf of the lease that is particularly for the amount of lease that is developed in the company (Stevenson, 2012). Both the lessee and the lessor are available for the purpose of the exemption that is granted by the authorities only if they amount to develop the new standards that are developed by the board in Australia in relation to the accounting standards of the company.
There is number of effects that are developed by the company using this system. The BHP Company has discovered that the company is suffering the loss in the various key performance indicators of the company. The company should also develop an effect on the tax amount. The tax amount gets decreased due to the change in the assets and the liabilities of the company that is developed for the purpose of this account of transaction of the company. The company should also receive the impact on the dividends that are developed by the company using the various amount of negativity developed in the company. To avoid the various consequences that are developed in the company using the new standards the company has given the transitional period to change this accounting from the other amount of accounting developed by the company (Xu, et. Al., 2017).
The changes in the standards also have the positive and the negative impacts on the company and they amount to provide relief to the company. The changes help in ensuring that there is two amount of option that is available to the company that helps in reducing the tax for the company and develops the company in a positive way.
Conclusion
From the above analysis, it is clear that the BHP Company is following all amount of rules and regulations and that why it is ranked as number second among all the industries working in Australia. The accounting concepts also affect the decision of the investors of the company and there is also the difference between the actual and the estimated results of the company. The disclosure of the accounting standard of lease helps the company in giving the clarity of decisions by the company and also amount to develop the trust in the company. Disclosure helps the lease properties to develop themselves and also have the tax deduction of the impairment of the assets. Changes that are made in the provisions of lease help in reducing the burden of the company on the disclosure of the information and the other amount of things.
References
AASB, C.A.S., 2016. Consolidated Financial Statements.
Annual report (2019). Welcome to BHP Billiton Limited. [Online]. Annual report. Available at: https://www.bhp.com/-/media/documents/investors/annual-reports/2018/bhpannualreport2018.pdf. [Accessed at: 30 September 2019]
Brumm, L. and Liu, J., 2019. New leasing accounting standard. Taxation in Australia, 53(8), p.449.
Chan, H.T. and Ryan, S., 2013. Challenging stereotypes: International accounting students in Australia. Journal of Modern Accounting and Auditing, 9(2), p.169.
Dakis, G.S., 2016. Upcoming changes to contributions and leasing standards. Governance Directions, 68(2), p.99.
Holland, D., 2016. Simplifying income recognition for not-for-profit entities. Governance Directions, 68(11), p.666.
Joubert, M., Garvie, L. and Parle, G., 2017. Implications of the New Accounting Standard for Leases AASB 16 (IFRS 16) with the Inclusion of Operating Leases in the Balance Sheet. The Journal of New Business Ideas & Trends, 15(2), pp.1-11.
Lease (2019). A guide to AASB 16. [Online]. Lease. Available at: https://www2.deloitte.com/content/dam/Deloitte/au/Documents/audit/deloitte-au-audit-aasb-16-guide-220916.pdf. [Accessed at: 30 September 2019]
Marşap, B. and Yanık, S., 2018. IFRS 16 Kapsamında Kiralama İşlemlerinin Finansal Raporlamaya Etkisinin İncelenmesi. Muhasebe ve Finansman Dergisi, (80).
Potter, B., Ravlic, T. and Wright, S., 2013. Developing accounting regulations that reflect public viewpoints: the Australian solution to differential reporting. Australian Accounting Review, 23(1), pp.18-28.
Stevenson, K.M., 2012. The changing IASB and AASB relationship. Australian Accounting Review, 22(3), pp.239-243.
Xu, W., Davidson, R.A. and Cheong, C.S., 2017. Converting financial statements: operating to capitalised leases. Pacific accounting review, 29(1), pp.34-54.
Abstract
The assignment is to make on the research and analysis of the financial performance of the selected company as we selected the Medibank private limited so we are going to analyse the medibank financial performance. This assignment requires making a comprehensive and detailed examination of the financial statement and its annual report, its share market, its market value, to come out the conclusion regarding the financial position and strength of the company. The financial statement gives overall data of the company of the same year. Analysis of financial performance can be done by making a comparison for two year or previous year’s data, these financial data helps to identify the real situation of the company. Financial strength can be measured by making the market analysis of customer satisfaction by its products and services offered by the company. This analysis report is required to make to provide advice to the wealthy investors regarding the financial position, its stability in the market, its transparency in the market. This analytical report gives assurance and a kind of satisfaction before making the investment in it. So that members trust can be enhanced by making believe on the productivity of the company.
I Introduction
Organisation that is selected for analysis in this report is Medibank Pvt. Limited. Medibank commenced on 1 July 1975 after passing the medibank legislation by joint sitting of parliament on 7 august 1974.the health insurance bill 1973 was the main bill that established MEDIBANK. Medibank private limited is a national private health insurer based company in Australia. It is second largest health insurance provider of Australia with the 3.8 million members & 29.1% market under two brands (medibank and ahm) .this company was set up to provide competition to private “ profit making company” health funds. Medibank was previously run as a not for profit organisation and later operated as a for profit government business enterprises with dividends paid to the federal government. It is a listed company on ASX. Medibank invests in community programs that support the health of all Australian this includes growing healthy kids which encourage healthy and active lifestyle in childhood.
II Financial Analysis of selected company
Description of one key product or service provided by the company
PRODUCTS OF THE COMPANY: COMPANY is providing the following services:
- Private health insurance
- Travel insurance
- Life insurance
- Pet insurance
- Workplace health promotion
- Workplace health management
- Health call centre.
Out the above one key product or services offered by the company are:
Private health insurance: private health insurance is also main product or services which are offered by medibank private limited (Medibank.com, 2019).
Health insurance policy is very important for managing the health issues, health care needs and health related expenses (Mustafa, et. al., 2012). We can claim the tax benefits under section 80D of the IT Act.
There are multiple health policy are available in the market which makes us confused , out of these which is best for us..
WHY MEDIBANK HEALTH INSURANCE
Medibank private limited health insurance policy is better than others.
Medibank private limited provides health insurance for all (singles, couples, family, single parents it has the staff having knowledge and expertise according to needs of individual.
The company uses the following kinds of offers to attract and to optimise the satisfaction of its customers.
Offers:
- 100% back on optical: get 100% back on the optical item ( up to the annual limit) at any recognised provider (Friesl, 2012).
- 100% back on dental twice a year: get 100% back on up to two dental checks up every year, including x-rays, from any member choice dentist.
- 100% back on kids extras: the company offers for kids no hospital excess on every one of its family hospital covers. And it also offers 100% back on included extras at member’s choice providers, as part of growing family and settled family packaged cover; it only applies to child and student dependents (Medibank.com, 2019).
- Accident cover boost…etc.: life is not predictable, any injury happened because of the accident, requires the hospital treatment, this insurance cover such risk that means services which are normally excluded will be treated as included to cover the injuries caused by accident (Rao, et. al., 2013).
Identify and conduct a trend analysis with two groups of financial ratios, including liquidity and capital structure of the selected company.
| Particulars |
2016-17 |
2017-18 |
2018-19 |
| Health Insurance Revenue |
6797 |
6468.8 |
6655.8 |
| Claim Expenses |
-5553.1 |
-5206.8 |
-5341.9 |
| Net Income |
1243.9 |
1262 |
1313.9 |
| Other Income |
11.8 |
12.5 |
6.4 |
| Operating Expense |
-766.3 |
-771.7 |
-806.8 |
| Income Tax |
-179.2 |
-174.2 |
-178.6 |
| Investment Income |
139.3 |
95.6 |
102.8 |
| Profit for Discontinued Operation |
2.5 |
20.9 |
21 |
| |
|
|
|
| Net Income |
452 |
445.1 |
458.7 |
| |
|
|
|
| Balance Sheet |
|
|
|
| Cash |
597.6 |
470.1 |
656.5 |
| Trade & other Receivables |
317 |
292.2 |
283.9 |
| Other Assets |
2088.8 |
2328.7 |
2190.1 |
| Current Assets |
3003.4 |
3091 |
3130.5 |
| Long Term Investments |
87.3 |
53.6 |
49.3 |
| Intangible Assets |
321.1 |
350.1 |
405.9 |
| Other Assets |
53.7 |
50.2 |
45.1 |
| Net Fixed Assets |
462.1 |
453.9 |
500.3 |
| Total Assets |
3465.5 |
3544.9 |
3630.8 |
| Current Liabilities |
1564.7 |
1534 |
1517.5 |
| Total Liabilities |
1742.7 |
1715.7 |
1695.4 |
| Total Stockholders’ Equity |
1719.8 |
1829.2 |
1935.4 |
| |
|
|
|
| Share Information |
|
|
|
| Earnings Per Share – Basic |
16.3 |
16.2 |
16.7 |
| |
|
|
|
(Source: Annual Review, 2019)
(Source: Annual Review, 2019)
Trends:
- In the year 2016-17 the current ratio is between the 1to 2. But in the year 2018-19 & 2017-18. The ratios were greater than 2. It depicts that the company had sufficient funds to pay of the payables and the current liabilities (Delen, et. al., 2013)
- Liquidity ratio is less than 1.but it shows positive results hence the company can pay liquidates expenses or contingent.
- Net Margin ratio is almost equal in all the year. It means that the company had not improved a lot but also not make losses from the past years (Danese, 2013).
- The net worth ratio will be slightly downward as compared to the other years
Perform a non-current asset analysis
The assets schedule is given below:
(Source: Annual Review, 2019)
Perform a scenario analysis with data provided
| Average Price |
$20 |
|
|
|
|
| Units to be sold |
360000 |
|
|
|
|
| Life |
4 years |
|
|
|
|
| Equipment Cost |
$2,500,000 |
|
|
|
|
| Residual Value |
$500,000 |
|
|
|
|
| Working Capital |
$800,000 |
|
|
|
|
| Variable Cost |
$18 |
|
|
|
|
| (Source: Annual Review, 2019) |
|
|
|
|
|
|
|
|
|
|
|
| NPV |
Worst Case |
|
|
|
|
| Years |
0 |
1 |
2 |
3 |
4 |
| Equipment Cost |
2500000 |
|
|
|
|
| Sales |
|
7200000 |
7200000 |
7200000 |
7200000 |
| Working Capi1tal |
|
$800,000 |
800000 |
800000 |
800000 |
| Variable Cost |
|
6480000 |
6480000 |
6480000 |
6480000 |
| Residual Value |
|
|
|
|
$500,000 |
| Cash Fixed Cost |
|
550000 |
550000 |
550000 |
$550,000 |
| Profit Before Tax |
|
($630,000) |
($630,000) |
($630,000) |
($630,000) |
| Tax |
|
-189000 |
-189000 |
-189000 |
-189000 |
| Profit after Tax |
|
($441,000) |
($441,000) |
($441,000) |
($441,000) |
| Discounted Values |
1 |
0.892857143 |
0.79719 |
0.71178 |
0.63552 |
| Discounted Cash Flow |
2500000 |
($393,750) |
($351,563) |
($313,895) |
($280,263) |
| (Source: Annual Review, 2019) |
|
|
|
|
|
| Outflow |
2500000 |
|
|
|
|
| Inflow |
-1339471.06 |
|
|
|
|
| Net Present Value |
-3839471.06 |
|
|
|
|
| Average Price |
$30 |
|
|
|
|
| Units to be sold |
540000 |
|
|
|
|
| Life |
4 years |
|
|
|
|
| Equipment Cost |
$2,500,000 |
|
|
|
|
| Residual Value |
$500,000 |
|
|
|
|
| Working Capital |
$800,000 |
|
|
|
|
| Variable Cost |
$12 |
|
|
|
|
| (Source: Annual Review, 2019) |
|
|
|
|
|
|
|
|
|
|
|
| NPV |
Best Case |
|
|
|
|
| Years |
0 |
1 |
2 |
3 |
4 |
| Equipment Cost |
2500000 |
|
|
|
|
| Sales |
|
16200000 |
16200000 |
16200000 |
16200000 |
| Working Capital |
|
$800,000 |
800000 |
800000 |
800000 |
| Variable Cost |
|
6480000 |
6480000 |
6480000 |
6480000 |
| Residual Value |
|
|
|
|
$500,000 |
| Cash Fixed Cost |
|
350000 |
350000 |
350000 |
$350,000 |
| Profit Before Tax |
|
$8,570,000 |
$8,570,000 |
$8,570,000 |
$8,570,000 |
| Tax |
|
2571000 |
2571000 |
2571000 |
2571000 |
| Profit after Tax |
|
$5,999,000 |
$5,999,000 |
$5,999,000 |
$5,999,000 |
| Discounted Values |
1 |
0.892857143 |
0.79719 |
0.71178 |
0.63552 |
| Discounted Cash Flow |
2500000 |
$5,356,250 |
$4,782,366 |
$4,269,970 |
$3,812,473 |
|
|
|
|
|
|
| Outflow |
2500000 |
|
|
|
|
| Inflow |
18221058.73 |
|
|
|
|
| Net Present Value |
15721058.73 |
|
|
|
|
(Source: Annual Review, 2019)
Interpretation on the sensitivity
Selling price: 9055951 = .19
450000*35*3.037
Variable Price = 9055951 = .44
450000*15*3.037
Fixed Cost = 9055951 = 6.63
450000*3.037
Identify and discuss any latest share or bond issuance by the selected company\
ON 26 MARCH 2014 Minister for Finance Mathias command announced that medibank sold through initial public offer in 2014-15 financial years. The sale was completed with 100% of the company sold .listing was done on Australian stock exchange under the code MPL on 25 November 2014.at that time market capitalisation was A$ 5.921billion.
Ray Williams, who was the public servant created the medibank in 1976 and he said the benefits should go directly to the customers.
The medibank IPO price was $2.15 and then government exceeded the range $1.55 to $2.00 and after it sale was gone up to 5.7 billion for the government.
Medicare is equity oriented entity, it possess 29 percent share of health insurance which enables it to negotiate in the market with other health insurance providers (Azim, 2012).
After this IPO, no further issue, right issue, private placement, bonus issue was brought by medibank private limited .as the medibank is an equity oriented company, authorised equity share capital of the company has not been changed (Siddiqui, 2015). it is the same as earlier however earring per share changed in every year because of retained earnings and reserves which was created by the company every year.
As the company is listed on asx ,shares are traded on asx.
The current market price of share of medibank private limited 3.36AUD ON 26 September.
The company is equity oriented so no bond was issued by the company. And no preference shares were issued by the medibank private limited (Akpan & Amran, 2014).
Calculate and discuss the PE ratios and share price movement of the selected company through 3 years
P/E Ratio will be used for the relative valuation. It is used to compare the share price to stocks earning per share. It is used to compare the investment basis that what are the returns on the basis share price (Medibank.com, 2019).
Formula
Price-Earnings Ratio = Price per share ÷ Earnings per share
Price of the share : $ 3.08
Earnings per share : $0.168
Price Earnings Ratio = $3.08 / .168
= 18.3
Hence it will show that the company will pay 18times that the share of investment.
III Recommendation letter
After the analysis of the financial position of the Medibank. The following recommendation can be made for the betterment of the company. The company is doing well with the business. Hence the ratio are calculated to know the company analysis and to know profitability of the company, the profitability is maintained in all the 3years of the business, hence the shares of the public in the company are secure, and they will be getting good result as per the expectation. The company should perform extra activities or make the popularise to increase the income and to grow the profitability of the company. The company should invest in the long term investment to increase the income of the bank. The PE ratio of the company is also showing that the company is also giving good returns of return. For maintaining the PE ratio the company should fluctuate rate of interest as per the market trends, so the interest on saving as well as on the loan should be balanced. The company assets which are in the progress should get complete as the 3 years or above had passed in the working stage. As per the analyst the investors should invest in the company to get better results.
IV Conclusion
Medibank is providing different kinds of insurance like health insurance, life insurance, and pet insurance etc. to cover the risk of its members. Multiple analysis was done to come out on the conclusion like non-current assets analysis, cash flow statement analysis, liquidity ratio, capital structures that means all over financial statement. By the analysis of income statement and comprehensive examination of financial performance based on financial statement of medibank private limited for financial year 2018-19. Profit was enhanced by 3.1% in the comparison of 2017-18 financial years. Earring per share was also enhanced by 3.1% as in 2018 it was 16.2and in 2019 it is 16.7.and if we talk about dividend per share it was also enhanced by3.1%. In 2018it was12.70 and in2019 it is 13.10.
The health insurance premium revenue was also enhanced by 2.3%in the comparison of the last year so on the basis of comparative study of two years in the simple words we can say that profitability of the company is increased. And it gives satisfaction to the investors to invest in product and services of medibank private limited that the company is growing company and it will fulfil the needs of the company. Andes for the fulfilment of companies gives different kind of health insurance offers like 100% back on optical,100 percent back on dental twice in a year.100 % back to kid’s extras. these offers are provided by the company to enhance the customer satisfaction and needs of the customer, Medibank not only providing offers but also providing different mode to claim the insurance, so that its member can claim the insurance amount very conveniently and their trust will be enhanced day by day on the company, In fact they also encourage to people to invest in company.
References
- Akpan, E.O. and Amran, N.A., 2014. Board characteristics and company performance: Evidence from Nigeria. Journal of Finance and Accounting, 2(3), pp.81-89.
- Annual Review, 2019. Medibank [Online]. Annual Review. Available at https://www.medibank.com.au/about/investor-centre/results-reports/annual-reports/[Accessed on 27.09.2019].
- Azim, M.I., 2012. Corporate governance mechanisms and their impact on company performance: A structural equation model analysis. Australian journal of management, 37(3), pp.481-505.
- Danese, P., 2013. Supplier integration and company performance: A configurational view. Omega, 41(6), pp.1029-1041.
- Delen, D., Kuzey, C. and Uyar, A., 2013. Measuring firm performance using financial ratios: A decision tree approach. Expert Systems with Applications, 40(10), pp.3970-3983.
- Friesl, M., 2012. Knowledge acquisition strategies and company performance in young high technology companies. British Journal of Management, 23(3), pp.325-343.
- Medibank.com, 2019.About Medibank Australia [Online]. Medibank.com. Available at https://www.medibank.com.au/about/ [Accessed on 27.09.2019].
- Mustafa, S.A., Othman, A.R. and Perumal, S., 2012. Corporate social responsibility and company performance in the Malaysian context. Procedia-Social and Behavioral Sciences, 65, pp.897-905.
- Park, T.Y. and Shaw, J.D., 2013. Turnover rates and organizational performance: A meta-analysis. Journal of applied psychology, 98(2), p.268.
- Rao, J., Yu, Y. and Cao, Y., 2013. The effect that R&D has on company performance: comparative analysis based on listed companies of technique intensive industry in China and Japan. International Journal of Education and Research, 1(4), pp.1-8.
- Siddiqui, S.S., 2015. The association between corporate governance and firm performance–a meta-analysis. International Journal of Accounting and Information Management, 23(3), pp.218-237.
Abstract
Corporate or financial accounting means the type of accounting the company has to follow. It will be different for every country as per the corporate laws of the country. The company have to follow all the rules and regulation while drafting annual reports of the company. The guidelines of the format had been described under the laws and the time of that preparation is also mentioned. If the company fails to prepare the report then they were liable to be punished or with the fine.
Introduction
The below assignment is completed with the A2m milk and the Bellamy limited. Both the company are the FMCG Company. The annual reports taken for the consideration is of 2017, 20 18 and 2019. The equity and the liability part of the annual report had been studied to find out the source of funding nomad the reason behind the change of the figures from one year to another. Financial ratios are analysed for both of the organisations in this report. This report provides good idea of the annual report terms of both the organisations.
Part A
-
Items recorded under the owners’ equity section
Bellamy limited Items recorded under the owner’s equity section is
Issued capital: the capital issued to the public either through IPO or through the after issue, or buyback will be included in this
Reserves: the change in any part of the company other than the operation are included in the reserves, it includes the foreign exchange reserves, revaluation reserves and other.
Retained profits: retained profits will include the part of the profits company had retained for the plans.
Non controlling interest: it is the part of the equity which is not held by the Bellamy limited and does not have the right to use it (Bellamy limited, 2019).
A2M milk items under the equity section:
Share capital: the share capital is the number of the shares issued by the company to the pub lice, employees or another member, either by IPO, or buyback will be included.
Retained earnings: this will include the saving of the profits for future management. As per the law, the company has to retained fix % of the profits as restrained earnings
Reserves: reserves will be the fluctuation inactivates under than operating, like hedging instrument (A2M,2019).
-
Movement in each item recorded under the owner equity section with the reason
Bellamy Limited Schedule of Equity Share
The company is having a change in the share capital pattern from 2017 to 2019. The company had issued a share in 2016 to the existing shareholders. As per the annual report of 2019, it was revealed that the company had issued 9,738,250 shares to the investors in 2017 for$ 46,257000. 3,190,042 shares were issued to the subsidiaries company and 708,467shares were under ESOP. At the end of 2019, the company had the 113,368,297 no of shares worth $120, 870000. The shares in 2018 were 113,316,104 worth 120,870 (Bellamy limited, 2019).
On the part of the balance sheet, the issued capital will be the same for all years. Reserves were fluctuated due to the change in foreign exchange and due to the profit and loss for the hedging instruments. The company had not paid any dividend in the current year.
A2M milk
As per the review of the company balance sheet company not had issued any share capital in the current year to the public. But had given the option of the ESOP to the employees.
Out of option raised the 3000998 shares were exercised of the value of $1890000 which were 4,231,000 were exercised in 2018 the value of the exercise was 2666000. The company also issue partly paid share worth $1080 in 2019. The cost of the issue was $41 in 2019 while $52 in 2018.
The company had paid a dividend in the current year as well as the last year
Reserves will include the employee equity-settled payment reserves, fair value reservation reserve and foreign currency translation reserve.
-
Items have been recorded under the liabilities section
Bellamy limited
Liability section is divided under two heads current liability or noncurrent liability
Current liability will include the change in the liabilities due to the operation of the business, it includes trade and payables, changes in the inventory, income tax liability and other
While in current liability will include employee benefits of the company
A2M Milk
As the same, it is also divided infer the two heads
Current liabilities had included the change in trade payables of the operations and other contract liabilities of the customer
While no current liabilities will include the p [arable other than the operations which are the employee’s entitlements
-
The movement in each item recorded under liabilities section with reason
Bellamy limited
The reason for the change is as follows:
Trade and payables: it will include the trade payables, as the suppliers whom the company have to pay for the stock they had purchased
Borrowings: borrowings will include the benefits of the credit card facilities of the company; it will include the secured loan of the company, from the bank. The total secured loan of the company is from either bank the bank facility or the guarantees given. As per the accounting standards, the borrowings are shown at the fair value of the consideration (Bellamy limited, 2019).
Derivative financial instruments: it will include the transition of the hedging, and they are recorded as the fair value on each subsequent re [porting date. The company recorded the net profit and loss in the instrument under the reserves of the company
Income tax: the income tax will be the liability of the tax of the cure net year which will be paid in the next financial year
Employee benefits: this will be the benefits given to the employs, but the employees not entertain the benefits yet
Provision: the provision will include the minimum annual provision. The reason for the change in minimum value.
Employee benefits: employee benefits will include the contingent liabilities of the employees for which the company had made provision.
A2M milk
The A2m milk had included the following liability
Trade payables: it will include the party to whom the company have to pay for the supplies.
Accruals: it had the liabilities company have to pay in the current year but nit paid in the current year, and dwell bow due in the current year.
Employee benefits: it will include the benefits given to the employees and not yet received. It will be recognised on the fair value and change of is the reason is in the fear value and number of the option.
Explain the relative advantages or disadvantages of each source of the fund each of your selected companies is using
Both the company had the capital raised from either from the issue of the capital or through the bank or financial institutions
The advantage is as follows:
Share Capital: the coma pony does not pay any fixed rate of the interest in the share capital, hence it will be beneficial to the company, but the company have to pay a dividend at the end of the year which involves the part of the profits.
Employee stock option: this option is given to the employees to make them retain in the company, in this option the employees can exercise the issue on the issue price on the date of /option given. They can also vest their right if they want
Bank: it is the most secure type of funding. The bank will take a fixed rate of interest but they have fixed maturity periods.
Part b
Concept of small proprietary companies, large proprietary companies and reporting entity.
Proprietary companies are those that are registered under section118, 60180,1362B. if any nature of the companies isis registered under these above mentioned is known as proprietary companies. The proprietary companies are limited by shares, not more than 50 shareholders, and no disclosure is done by a proprietary company in front of the public. These are some condition to become a proprietary company (Hiller, 2013).
Small proprietary companies
Small proprietary companies are the companies that follow all the above-mentioned condition and some additional condition that is
The small proprietary companies are considered small if they earn gross revenue not more or less $10 million in a financial year.
The small proprietary companies are to be under small proprietary if the companies assets turnover is less than $5 million in a financial year.
The small proprietary should consist of not more than 50 non-employees shareholders at the end of the year or financial year.
Hence, if any company is fulfilling a minimum 2 of the following condition they are considered as the small proprietary company as per section 113 (May 2013).
Large proprietary companies
Large proprietary companies are the companies that are fulfilling above mentioned objective that is mentioned in proprietorship clauses and some additional condition also applied to accept the companies as a large proprietary company the condition are
The large proprietary companies are to considered to be large if they earn gross revenue of $10million or more than $10million in the financial year.
The large proprietary companies are considered to be large proprietary under section 113 if their assets turnover is $ 5 million or more than that in the financial year (May 2013).
The large proprietary company should consist of 50 employees or more than that margin in the financial year.
Hence if all the condition is fulfilled by any proprietary companies the company is considered under a large proprietary company and above clauses should be followed by the company every financial year.
Reporting entity companies
Reporting entity companies are the companies that are dependent on the general purpose financial report to develop the understanding of the financial position and performance of the company or the firm or the business entity, the reporting entity also use the understanding to make necessary decision making for the financial aspect of the company. The general users f this portal is the shareholders, members, employees, and potential investors . under this condition all the Australian standard are to be implemented and proposed while understanding the financial report and all the condition that are mentioned in the Australian standards report and conclude the report after covering all the relevant clauses that are related to the particular financial report that is share price , taxation report and another public outcomes that is to followed by the company while building any decision making and framing policies (Kang and Gray, 2013).
The implication of the terms, compliance and reporting requirement in all the above mentioned three types of companies
Small proprietary company
Institutional framework
As per the institutional framework, the small proprietary companies should register themselves under the head proprietorship clauses. The small entity company should not have the rights to disclose any report or share under public report broadcasting and they have to follow all the riles that the framework amends to follows, if any violation occurs in future the laws suggest he punishment as well.The rule violation will cause the closedown of the company, some fine amount should be discharge and the required certificate that is commencement certificate should be incorporated under the proprietorship act. These are all some framework that is suggested by the government of the country (Miglani, et.al., 2015.
Accounting standard
Small entity companies should follow the AASB-series standards that are to allotted by the Australian standard of the country for performing any financial transaction and preparing a financial report. The AASB-series includes the health discussion if in any case required, the small entity companies should also consult the public for processing. The head that comes under AASB- series are Australian securities and commission act 1989 of corporation law (Miglani, et.al., 2015).
Auditing standard
The auditing standard that is followed under the corporation laws is the auditing and assurance standards board. This standard helps the proprietor to develop some professional code and conduct for professionalism framework and maintaining standards in the company and provide assistance to carry financial report ethically and professionally. Hence the auditing body also prescribed the violation condition, so that the person think before doing any evil act.
Large proprietary companies
Accounting standards and auditing standard
The large entity should maintain the gross revenue as mentioned under the proprietary clauses or section. The accounting standard suggests some norms as mentioned under the corporation laws the laws 3expalined that the proprietary business does not consider as the public company. So that they have no right to disclose their investors and shares of the company they take help of the public consultation process for better functioning and report preparation. The Australian accounting standard provides certain guidelines that are to be followed by the large entity companies, otherwise, they will suffer complication in the working and the development of accounting standards raise the standard of the financial senses too and helps the company professional to implement those standards to sustain the quality and working in the organization.
The auditing and assurance standard helps the large proprietary companies to develop ethical processing in the company to carry out financial norms with high standards in auditing policies. The auditing policies also levied rules and restriction for effective functioning (Rahman, 2013).
Reporting entity companies
Accounting standard and auditing standard
Reporting entity company should also follows the relevant standard to maintain the ethical environment in the organization and to prevent company from heavy losses the reporting entity company prefer the GPFR portal or a assistance that helps them to develop understanding of the financial nature and behaviour that needs to maintained the effective financial position and to take relevant and accurate decision making after studying the GPFR reports and prepare the company report as per the study done in the GPFR portal and make changes and implementation accordingly (Gay and Simnett,, 2012).
Conclusion
The study of all the above mentioned clauses reveals that every company whether it is A2M milk companies and Bellamy limited of Australia should follow all the rules and regulation that is amended by the Australian standards under the accounting heads for carry out their financial position and reporting effectively because if they do not implement all the clauses they do not know the nature of their business. For maintaining quality standards and to distribute equal shares to discharge financial responsibility and to implement high standard and ethical working the company needs to follow the guidelines that are amended by the Australian government to carry out financial planning and functioning effectively. Hence for gathering effective and professional financial essence whether it is in the small, large or reporting entity, the company needs to follow the standards for basic formalities, financial years terms and condition, and to maintain consistency in the business.
References
A2M, 2019, Annual report of A2M milk[online] A2M available at: https://thea2milkcompany.com/wp-content/uploads/The-a2-Milk-Company_FY19-Annual-Report_double-pages-1.pdf[access on 29 September 2019]
Bellamy limited, 2019, About investors and share of the company[online] Bellamy, limited available at: https://www.intelligentinvestor.com.au/shares/asx-bal/bellamys-australia-limited[access on 29 September 2019]
Bellamy limited, 2019, Annual report [online] Bellamy limited, available at http://www.annualreports.com/Company/Bellamys-AustraliaLtd[access on 29 September 2019]
Gay, G. and Simnett, R., 2012. Auditing and assurance services in Australia. McGraw-Hill Education Australia.
Hiller, J.S., 2013. The benefit corporation and corporate social responsibility. Journal of Business Ethics, 118(2), pp.287-301.
Kang, H. and Gray, S.J., 2013. Segment reporting practices in Australia: Has IFRS 8 made a difference?. Australian Accounting Review, 23(3), pp.232-243.
May, G.O., 2013. Financial accounting. Read Books Ltd.
Miglani, S., Ahmed, K. and Henry, D., 2015. Voluntary corporate governance structure and financial distress: Evidence from Australia. Journal of Contemporary Accounting & Economics, 11(1), pp.18-30.
Rahman, A.R., 2013. The Australian Accounting Standards Review Board (RLE Accounting): The Establishment of its Participative Review Process. Routledge.
Abstract
Jb Hi Fi Company is founded by John Barbuto. It is a type of retail industry founded 45 years ago in 1974 at Keilor East, Victoria, Australia. This company mainly deals in the products related to customer electronics, major appliances such as domestic appliance for cooking and washing laundry, for food preservation etc and example of small appliances can be said as microwave oven, coffee makers etc. JB Hi Fi is the largest company of home appliances in Australia. It deals in Computers, tablets, mobile phones, TVs and gaming multimedia. The Good Guys is the subsidiary of this company. JB HI FI is located nearly at 303 places including Australia and New Zealand. The headquarters of JB Hi Fi Company is in Tower Two of Vicinity Centre’s Chadstone Shopping Centre, Melbourne, Australia. Gregory Richards being a Chairman of the company and Richard Murray as the CEO forms the two key people of Jb Hi Fi. This company is publically traded in the Australian stock exchange named ASX: JBH. The company ranks 50 out of top 2000 companies running in Australia. All the other relevant information about the company can be referred through the official website of Jb Hi Fi Company https://www.jbhifi.com.au/.
I Introduction
Here we are going to know all about the success policies of JB HI FI. Its financial performance and income statements of the company. Jb Hi Fi is an Australian company, aw we know, one of the largest entertainment retailer of home products. The company deals with major appliances as well as small appliances in a variety of home appliances. Mobile phones, laptops, televisions, gaming microwave ovens, toaster JB Hi Fi are all examples of the company’s flagship and small appliances.
In this assignment, we will go over all the important and salient issues faced by the company in general, their adopted principles, the overall performance measures used, and the performance of the firm’s financial position of JB HI FI Company. We will also analyse the structure of capital, their price to income ratio, non-assets of the company JB hi fi. These performances will set the standards for future targets for the company, will they be able to meet their goals and achieve success in the near future?
We will analyse the changing trends about the Jb Hi Fi Australian Company for the last three year financial ratios of the company. An in-depth study of the company’s performance analysis and success report will be seen. The company’s philosophy and system of work will predict the future. Jb Hi Fi as stated above in this assignment is the real and comparable figures according to the official website of the Australian company. We can get all the necessary information about the company from the company annual report. The referenced material has been updated in the year 2019.
Here we are also going to know the details about the liquidity position of Jb Hi Fi Australian Company. The prices of the shares are updated and regularly assured from the official website of JB HI FI COMPANY https://www.jbhifi.com.au.
II Financial Analysis of selected company
2.1 The key product for Jb Hi Fi Company is electronic household entertainment appliances –
JB Hi Fi Company in Australia deals in household or domestic products, major appliances as well as small appliances. Major appliances such as TVs, laptops are bigger in size and higher in value as compared to small appliances such as coffees machine and microwave oven (Tandon & Malhotra, 2013). The importance of the petroleum products in maintaining the comparative advantages of the company are listed below –
- Safety – The Company properly maintained the safety measures in all the products. Provides healthy and safe working environment for all the employees working in the company. Fair behaviour and strict rules and regulations prevent accidents and ensure safety in the company.
- Diversity – Jb Hi Fi Company has much line of products. They have diverse skills, background, and experience about policies. They are creative and innovative for products. They try to plan and make strategies for creating as well as promotion of the new product.
- Social programs – Company contributes in Helping Hand weekly. Helping hand is the Registered Charitable Trust. This trust has been introduced so that employees donate a limited liability to charity.
- Employee groups – Employee groups are formed for timely awareness and programs relating to the benefits of workplace leadership across Australian businesses.
-
- Complete Disclosure – The director’s focus mainly on the forming up of different strategies and success paths. They want the customers to have the complete disclosure of all the relevant information about the company. Bank, investors, government or the interested parties.
- Risk Identification and Management – The Company conducts the necessary operations for the company to identify the risk and manage between risk and reward.
- E- Waste – All the E- Waste from different stores and operations for the support purposes are recycled. No wastage takes place by the store initiatives. They ensure the impact of wastage on the environment gets reduced with time.
Variable rewards incentives – the reward incentive under the VRP in the case of dishonesty and fraud, the board’s discretion will happen by the clawback. Misstatement of material, breach of material and in some circumstances the board shows negligence (Talari, et. al., 2017). Subject to this, a Group executive will not be eligible to receive VRPaward in respect of performance period.
Note – If, during that period, the executive cease to employed, or has given notice of his or her resignation from employment or has been given notice of termination from employment.
2.2 Identify and conduct a trend analysis with two groups of financial ratios, including liquidity and capital structure of the selected company.
| BALANCE SHEET RATIOS |
|
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|
|
|
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|
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| S. No, |
|
Particulars |
2016-17 |
|
2017-18 |
|
2018-19 |
|
| 1 |
Current |
|
|
|
|
|
|
|
|
|
Current Assets |
$ 1,170.70 |
1.321630165 |
$ 1,210.50 |
1.319777584 |
$ 1,276.50 |
1.376874124 |
|
|
Current Liabilities |
$ 885.80 |
$ 917.20 |
$ 927.10 |
| 2 |
Quick |
|
|
|
|
|
|
|
|
|
Cash + Accts. Rec. |
$ 269.40 |
0.304131858 |
$ 276.70 |
0.301679023 |
$ 355.20 |
0.383130191 |
|
|
Current Liabilities |
$ 885.80 |
$ 917.20 |
$ 927.10 |
| 3 |
Debt-to-Worth |
|
|
|
|
|
|
|
|
|
Total Liabilities |
$ 1,598.80 |
0.651959385 |
$ 947.60 |
0.5 |
$ 1,044.10 |
0.5 |
|
0 |
Net Worth |
$ 2,452.30 |
$ 1,895.20 |
$ 2,088.20 |
|
|
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|
|
|
|
|
|
| INCOME STATEMENT RATIOS: Profitability (Earning Power) |
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|
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|
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| 4 |
Gross Margin |
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|
|
|
|
|
|
|
Gross Profit |
$ 1,230.50 |
0.218638948 |
$ 1,470.10 |
0.214478503 |
$ 1,527.10 |
0.215226981 |
|
|
Sales |
$ 5,628.00 |
$ 6,854.30 |
$ 7,095.30 |
| 5 |
Net Margin |
|
|
|
|
|
|
|
|
|
Net Profit Before Tax |
$ 172.40 |
0.030632552 |
$ 233.20 |
0.034022438 |
$ 249.80 |
0.035206404 |
|
|
Sales |
$ 5,628.00 |
$ 6,854.30 |
$ 7,095.30 |
|
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|
|
| ASSET MANAGEMENT RATIOS: Overall Efficiency Ratios |
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| 6 |
Sales-to-Assets |
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|
Sales |
$ 5,628.00 |
2.294988378 |
$ 6,854.30 |
2.723743294 |
$ 7,095.30 |
2.836871776 |
|
|
Total Assets |
$ 2,452.30 |
$ 2,516.50 |
$ 2,501.10 |
| 7 |
Return on Assets |
|
|
|
|
|
|
|
|
|
Net Profit Before Tax |
$ 259.20 |
0.105696693 |
$ 334.50 |
0.13292271 |
$ 358.90 |
0.143496861 |
|
|
Total Assets |
$ 2,452.30 |
$ 2,516.50 |
$ 2,501.10 |
| 8 |
Return on Investment |
|
|
|
|
|
|
|
|
|
Net Profit Before Tax |
$ 259.20 |
0.105696693 |
$ 334.50 |
0.176498523 |
$ 358.90 |
0.17187051 |
|
|
Net Worth |
$ 2,452.30 |
$ 1,895.20 |
$ 2,088.20 |
|
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| ASSET MANAGEMENT RATIOS: Working Capital Cycle Ratios |
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| 9 |
Inventory Turnover |
|
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|
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|
|
|
Cost of Goods Sold |
$ (4,397.50) |
-5.11396674 |
$ (5,384.10) |
-6.042082819 |
$ (5,568.20) |
-6.27968873 |
|
|
Inventory |
$ 859.90 |
$ 891.10 |
$ 886.70 |
| 10 |
Inventory Turn-Days |
|
|
|
|
|
|
|
|
|
360 |
360 |
0.418653332 |
360 |
0.403995062 |
360 |
0.405999774 |
|
|
Inventory Turnover |
$ 859.90 |
$ 891.10 |
$ 886.70 |
| 11 |
Accounts Receivable Turnover |
|
|
|
|
|
|
|
|
|
Sales |
$ 5,628.00 |
28.6266531 |
$ 6,854.30 |
33.48461163 |
$ 7,095.30 |
30.06483051 |
|
|
Accounts Receivable |
$ 196.60 |
$ 204.70 |
$ 236.00 |
Trends:
- Current Ratio is the important ratio of the company. It will show that how company will pay the current liabilities. It is comparatively similar in every year.
- The ratio of liquidity will clear out that the company is viable to pay the liquid liabilities. It should be less than 1. The company is having good liquid ratios, and it is maintained in all the 3 years.
- The ratio of net worth will clear out that at either company assets are justifying with the company equity or not. It should not be overvalued or undervalued. The company is also having similar net worth ratio in all the years.
- The net margin will show the profitability of the company. It will shoe either company is profit making or not (JB HI Fi Group, 2019).
- The return on assets will show that how much of the assets had been utilised. How much profit they are giving.
- All the contribution in equity is from the shareholders, and it also comprises of the retained earnings and reserves.
2.3 Perform a non-current asset analysis
| Carrying Amount end of the year |
2016-17 |
2017-18 |
2018-19 |
| Plant & Equipment |
148.2 |
148.2 |
132.3 |
| Leasehold Improvements |
60 |
60 |
59.2 |
|
|
|
|
| Depreciation |
2016-17 |
2017-18 |
2018-19 |
| Plant & Equipment |
138.5 |
162.4 |
196.3 |
| Leasehold Improvements |
97.3 |
113.9 |
130.2 |
|
|
|
|
| Carrying Amount beg. of the year |
2016-17 |
2017-18 |
2018-19 |
| Plant & Equipment |
114.8 |
148.2 |
148.2 |
| Leasehold Improvements |
61.4 |
60 |
60 |
The fixed assets are consisting of the plant & equipment.
The life of the estimates is as follows:
Leasehold Property: 1 to 15 years
Plant and Equipment: 1.5 to 15 years
The impairment will be done as per the change in circumstances.
2.4 Perform a scenario analysis with data provided
| Average selling price |
$ 25.00 |
|
|
|
| Expected sale |
450000 |
|
|
|
| equipment cost |
$ 2,500,000.00 |
|
|
|
| Residual Value |
$ 500,000.00 |
|
|
|
| Working Capital |
$ 800,000.00 |
|
|
|
| Depreciation |
SLM |
|
|
|
| Variable cost |
$ 15.00 |
|
|
|
| Fixed cost |
$ 450,000.00 |
|
|
|
| Discount rate |
12% |
|
|
|
| Tax Rate |
30% |
|
|
|
|
|
|
|
|
| Year |
1year |
2 year |
3 year |
4 year |
| Sales |
11250000 |
11250000 |
11250000 |
11250000 |
| Variable cost |
6750000 |
6750000 |
6750000 |
6750000 |
| Contribution |
4500000 |
4500000 |
4500000 |
4500000 |
| Fixed cost |
450000 |
450000 |
450000 |
450000 |
| Depreciation |
500000 |
500000 |
500000 |
500000 |
| Operating Profit |
3550000 |
3550000 |
3550000 |
3550000 |
| Tax |
1065000 |
1065000 |
1065000 |
1065000 |
| PAT |
2485000 |
2485000 |
2485000 |
2485000 |
| Depreciation |
500000 |
500000 |
500000 |
500000 |
| Working Capital |
|
|
|
800000 |
| Residual Value |
|
|
|
500000 |
| Free Cash Flows |
2985000 |
2985000 |
2985000 |
4285000 |
| Discounted Value |
0.892857143 |
0.79719 |
0.71178 |
0.63552 |
| Discounted Inflows |
2665178.571 |
2379624 |
2124664 |
2723195 |
|
|
|
|
|
|
|
|
|
|
| Outflow |
$ 3,300,000.00 |
|
|
|
| Inflow |
9892661.302 |
|
|
|
| NRV |
$ 6,592,661.30 |
|
|
|
| Average selling price |
$ 20.00 |
|
|
|
| Expected sale |
450000 |
|
|
|
| equipment cost |
$ 2,500,000.00 |
|
|
|
| Residual Value |
$ 500,000.00 |
|
|
|
| Working Capital |
$ 800,000.00 |
|
|
|
| Depreciation |
SLM |
|
|
|
| Variable cost |
$ 15.00 |
|
|
|
| Fixed cost |
$ 450,000.00 |
|
|
|
| Discount rate |
12% |
|
|
|
| Tax Rate |
|
30% |
|
|
|
|
|
|
|
|
|
| Year |
|
1year |
2 year |
3 year |
4 year |
| Sales |
|
9000000 |
9000000 |
9000000 |
9000000 |
| Variable cost |
|
6750000 |
6750000 |
6750000 |
6750000 |
| Contribution |
|
2250000 |
2250000 |
2250000 |
2250000 |
| Fixed cost |
|
450000 |
450000 |
450000 |
450000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Operating Profit |
|
1300000 |
1300000 |
1300000 |
1300000 |
| Tax |
|
390000 |
390000 |
390000 |
390000 |
| PAT |
|
910000 |
910000 |
910000 |
910000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Working Capital |
|
|
|
|
800000 |
| Residual Value |
|
|
|
|
500000 |
| Free Cash Flows |
|
1410000 |
1410000 |
1410000 |
2710000 |
| Discounted Value |
|
0.892857143 |
0.79719 |
0.71178 |
0.63552 |
| Discounted Inflows |
|
1258928.571 |
1124043.367 |
1003610.149 |
1722254 |
|
|
|
|
|
|
|
|
|
|
|
|
| Outflow |
|
$ 3,300,000.00 |
|
|
|
| Inflow |
|
5108836.081 |
|
|
|
| NRV |
|
$ 1,808,836.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average selling price |
$ 25.00 |
|
|
|
| Expected sale |
360000 |
|
|
|
| equipment cost |
$ 2,500,000.00 |
|
|
|
| Residual Value |
$ 500,000.00 |
|
|
|
| Working Capital |
$ 800,000.00 |
|
|
|
| Depreciation |
SLM |
|
|
|
| Variable cost |
$ 15.00 |
|
|
|
| Fixed cost |
$ 450,000.00 |
|
|
|
| Discount rate |
12% |
|
|
|
| Tax Rate |
|
30% |
|
|
|
|
|
|
|
|
|
| Year |
|
1year |
2 year |
3 year |
4 year |
| Sales |
|
9000000 |
9000000 |
9000000 |
9000000 |
| Variable cost |
|
5400000 |
5400000 |
5400000 |
5400000 |
| Contribution |
|
3600000 |
3600000 |
3600000 |
3600000 |
| Fixed cost |
|
360000 |
360000 |
360000 |
360000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Operating Profit |
|
2740000 |
2740000 |
2740000 |
2740000 |
| Tax |
|
822000 |
822000 |
822000 |
822000 |
| PAT |
|
1918000 |
1918000 |
1918000 |
1918000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Working Capital |
|
|
|
|
800000 |
| Residual Value |
|
|
|
|
500000 |
| Free Cash Flows |
|
2418000 |
2418000 |
2418000 |
3718000 |
| Discounted Value |
|
0.892857143 |
0.79719 |
0.71178 |
0.63552 |
| Discounted Inflows |
|
2158928.571 |
1927614.796 |
1721084.639 |
2362856 |
|
|
|
|
|
|
|
|
|
|
|
|
| Outflow |
|
$ 3,300,000.00 |
|
|
|
| Inflow |
|
8170484.222 |
|
|
|
| NRV |
|
$ 4,870,484.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average selling price |
$ 25.00 |
|
|
|
| Expected sale |
450000 |
|
|
|
| equipment cost |
$ 2,500,000.00 |
|
|
|
| Residual Value |
$ 500,000.00 |
|
|
|
| Working Capital |
$ 800,000.00 |
|
|
|
| Depreciation |
SLM |
|
|
|
| Variable cost |
$ 29.80 |
|
|
|
| Fixed cost |
$ 450,000.00 |
|
|
|
| Discount rate |
12% |
|
|
|
| Tax Rate |
|
30% |
|
|
|
|
|
|
|
|
|
| Year |
|
1year |
2 year |
3 year |
4 year |
| Sales |
|
11250000 |
11250000 |
11250000 |
11250000 |
| Variable cost |
|
13410000 |
13410000 |
13410000 |
13410000 |
| Contribution |
|
-2160000 |
-2160000 |
-2160000 |
-2160000 |
| Fixed cost |
|
450000 |
450000 |
450000 |
450000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Operating Profit |
|
-3110000 |
-3110000 |
-3110000 |
-3110000 |
| Tax |
|
-933000 |
-933000 |
-933000 |
-933000 |
| PAT |
|
-2177000 |
-2177000 |
-2177000 |
-2177000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Working Capital |
|
|
|
|
800000 |
| Residual Value |
|
|
|
|
500000 |
| Free Cash Flows |
|
-1677000 |
-1677000 |
-1677000 |
-377000 |
| Discounted Value |
|
0.892857143 |
0.79719 |
0.71178 |
0.63552 |
| Discounted Inflows |
|
-1497321.429 |
-1336894.133 |
-1193655.476 |
-239590 |
|
|
|
|
|
|
|
|
|
|
|
|
| Outflow |
|
$ 3,300,000.00 |
|
|
|
| Inflow |
|
-4267461.352 |
|
|
|
| NRV |
|
$ (7,567,461.35) |
|
|
|
|
|
|
|
|
|
| Worst Case |
|
|
|
|
|
|
|
|
|
|
|
| Average selling price |
$ 25.00 |
|
|
|
| Expected sale |
450000 |
|
|
|
| equipment cost |
$ 2,500,000.00 |
|
|
|
| Residual Value |
$ 500,000.00 |
|
|
|
| Working Capital |
$ 800,000.00 |
|
|
|
| Depreciation |
SLM |
|
|
|
| Variable cost |
$ 15.00 |
|
|
|
| Fixed cost |
$ 550,000.00 |
|
|
|
| Discount rate |
12% |
|
|
|
| Tax Rate |
|
30% |
|
|
|
|
|
|
|
|
|
| Year |
|
1year |
2 year |
3 year |
4 year |
| Sales |
|
11250000 |
11250000 |
11250000 |
11250000 |
| Variable cost |
|
6750000 |
6750000 |
6750000 |
6750000 |
| Contribution |
|
4500000 |
4500000 |
4500000 |
4500000 |
| Fixed cost |
|
$ 550,000.00 |
$ 550,000.00 |
550000 |
550000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Operating Profit |
|
3450000 |
3450000 |
3450000 |
3450000 |
| Tax |
|
1035000 |
1035000 |
1035000 |
1035000 |
| PAT |
|
2415000 |
2415000 |
2415000 |
2415000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Working Capital |
|
|
|
|
800000 |
| Residual Value |
|
|
|
|
500000 |
| Free Cash Flows |
|
2915000 |
2915000 |
2915000 |
4215000 |
| Discounted Value |
|
0.892857143 |
0.79719 |
0.71178 |
0.63552 |
| Discounted Inflows |
|
2602678.571 |
2323820.153 |
2074839.422 |
2678709 |
|
|
|
|
|
|
| Sensitivity Analysis |
|
|
|
|
|
| Outflow |
|
$ 3,300,000.00 |
|
|
|
| Inflow |
|
9680046.847 |
|
|
|
| NRV |
|
$ 6,380,046.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unit Drivers |
|
|
Expected NRV |
Revised NRV |
Change in % |
| Unit Sales (-20%) |
|
|
$ 6,592,661.30 |
$ 1,808,836.08 |
73% |
| Per Unit (-20%) |
|
|
$ 6,592,661.30 |
$ 4,870,484.22 |
26% |
| Variable Cost (+20%) |
|
|
$ 6,592,661.30 |
$ (7,567,461.35) |
215% |
| Cash Fixed Cost (+100000) |
|
|
$ 6,592,661.30 |
$ 6,380,046.85 |
3% |
Good Case
| Average selling price |
$ 30.00 |
|
|
|
| Expected sale |
450000 |
|
|
|
| equipment cost |
$ 2,500,000.00 |
|
|
|
| Residual Value |
$ 500,000.00 |
|
|
|
| Working Capital |
$ 800,000.00 |
|
|
|
| Depreciation |
SLM |
|
|
|
| Variable cost |
$ 15.00 |
|
|
|
| Fixed cost |
$ 450,000.00 |
|
|
|
| Discount rate |
12% |
|
|
|
| Tax Rate |
|
30% |
|
|
|
|
|
|
|
|
|
| Year |
|
1year |
2 year |
3 year |
4 year |
| Sales |
|
13500000 |
13500000 |
13500000 |
13500000 |
| Variable cost |
|
6750000 |
6750000 |
6750000 |
6750000 |
| Contribution |
|
6750000 |
6750000 |
6750000 |
6750000 |
| Fixed cost |
|
450000 |
450000 |
450000 |
450000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Operating Profit |
|
5800000 |
5800000 |
5800000 |
5800000 |
| Tax |
|
1740000 |
1740000 |
1740000 |
1740000 |
| PAT |
|
4060000 |
4060000 |
4060000 |
4060000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Working Capital |
|
|
|
|
800000 |
| Residual Value |
|
|
|
|
500000 |
| Free Cash Flows |
|
4560000 |
4560000 |
4560000 |
5860000 |
| Discounted Value |
|
0.892857143 |
0.79719 |
0.71178 |
0.63552 |
| Discounted Inflows |
|
4071428.571 |
3635204.082 |
3245717.93 |
3724136 |
|
|
|
|
|
|
|
|
|
|
|
|
| Outflow |
|
$ 3,300,000.00 |
|
|
|
| Inflow |
|
14676486.52 |
|
|
|
| NRV |
|
$ 11,376,486.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average selling price |
$ 25.00 |
|
|
|
| Expected sale |
540000 |
|
|
|
| equipment cost |
$ 2,500,000.00 |
|
|
|
| Residual Value |
$ 500,000.00 |
|
|
|
| Working Capital |
$ 800,000.00 |
|
|
|
| Depreciation |
SLM |
|
|
|
| Variable cost |
$ 15.00 |
|
|
|
| Fixed cost |
$ 450,000.00 |
|
|
|
| Discount rate |
12% |
|
|
|
| Tax Rate |
|
30% |
|
|
|
|
|
|
|
|
|
| Year |
|
1year |
2 year |
3 year |
4 year |
| Sales |
|
13500000 |
13500000 |
13500000 |
13500000 |
| Variable cost |
|
8100000 |
8100000 |
8100000 |
8100000 |
| Contribution |
|
5400000 |
5400000 |
5400000 |
5400000 |
| Fixed cost |
|
540000 |
540000 |
540000 |
540000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Operating Profit |
|
4360000 |
4360000 |
4360000 |
4360000 |
| Tax |
|
1308000 |
1308000 |
1308000 |
1308000 |
| PAT |
|
3052000 |
3052000 |
3052000 |
3052000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Working Capital |
|
|
|
|
800000 |
| Residual Value |
|
|
|
|
500000 |
| Free Cash Flows |
|
3552000 |
3552000 |
3552000 |
4852000 |
| Discounted Value |
|
0.892857143 |
0.79719 |
0.71178 |
0.63552 |
| Discounted Inflows |
|
3171428.571 |
2831632.653 |
2528243.44 |
3083534 |
|
|
|
|
|
|
|
|
|
|
|
|
| Outflow |
|
$ 3,300,000.00 |
|
|
|
| Inflow |
|
11614838.38 |
|
|
|
| NRV |
|
$ 8,314,838.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average selling price |
$ 25.00 |
|
|
|
| Expected sale |
450000 |
|
|
|
| equipment cost |
$ 2,500,000.00 |
|
|
|
| Residual Value |
$ 500,000.00 |
|
|
|
| Working Capital |
$ 800,000.00 |
|
|
|
| Depreciation |
SLM |
|
|
|
| Variable cost |
$ 12.00 |
|
|
|
| Fixed cost |
$ 450,000.00 |
|
|
|
| Discount rate |
12% |
|
|
|
| Tax Rate |
|
30% |
|
|
|
|
|
|
|
|
|
| Year |
|
1year |
2 year |
3 year |
4 year |
| Sales |
|
11250000 |
11250000 |
11250000 |
11250000 |
| Variable cost |
|
5400000 |
5400000 |
5400000 |
5400000 |
| Contribution |
|
5850000 |
5850000 |
5850000 |
5850000 |
| Fixed cost |
|
450000 |
450000 |
450000 |
450000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Operating Profit |
|
4900000 |
4900000 |
4900000 |
4900000 |
| Tax |
|
1470000 |
1470000 |
1470000 |
1470000 |
| PAT |
|
3430000 |
3430000 |
3430000 |
3430000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Working Capital |
|
|
|
|
800000 |
| Residual Value |
|
|
|
|
500000 |
| Free Cash Flows |
|
3930000 |
3930000 |
3930000 |
5230000 |
| Discounted Value |
|
0.892857143 |
0.79719 |
0.71178 |
0.63552 |
| Discounted Inflows |
|
3508928.571 |
3132971.939 |
2797296.374 |
3323760 |
|
|
|
|
|
|
|
|
|
|
|
|
| Outflow |
|
$ 3,300,000.00 |
|
|
|
| Inflow |
|
12762956.43 |
|
|
|
| NRV |
|
$ 9,462,956.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average selling price |
$ 25.00 |
|
|
|
| Expected sale |
450000 |
|
|
|
| equipment cost |
$ 2,500,000.00 |
|
|
|
| Residual Value |
$ 500,000.00 |
|
|
|
| Working Capital |
$ 800,000.00 |
|
|
|
| Depreciation |
SLM |
|
|
|
| Variable cost |
$ 15.00 |
|
|
|
| Fixed cost |
$ 550,000.00 |
|
|
|
| Discount rate |
12% |
|
|
|
| Tax Rate |
|
30% |
|
|
|
|
|
|
|
|
|
| Year |
|
1year |
2 year |
3 year |
4 year |
| Sales |
|
11250000 |
11250000 |
11250000 |
11250000 |
| Variable cost |
|
6750000 |
6750000 |
6750000 |
6750000 |
| Contribution |
|
4500000 |
4500000 |
4500000 |
4500000 |
| Fixed cost |
|
$ 550,000.00 |
$ 550,000.00 |
550000 |
550000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Operating Profit |
|
3450000 |
3450000 |
3450000 |
3450000 |
| Tax |
|
1035000 |
1035000 |
1035000 |
1035000 |
| PAT |
|
2415000 |
2415000 |
2415000 |
2415000 |
| Depreciation |
|
500000 |
500000 |
500000 |
500000 |
| Working Capital |
|
|
|
|
800000 |
| Residual Value |
|
|
|
|
500000 |
| Free Cash Flows |
|
2915000 |
2915000 |
2915000 |
4215000 |
| Discounted Value |
|
0.892857143 |
0.79719 |
0.71178 |
0.63552 |
| Discounted Inflows |
|
2602678.571 |
2323820.153 |
2074839.422 |
2678709 |
|
|
|
|
|
|
|
|
|
|
|
|
| Outflow |
|
$ 3,300,000.00 |
|
|
|
| Inflow |
|
9680046.847 |
|
|
|
| NRV |
|
$ 6,380,046.85 |
|
|
|
|
|
|
|
|
|
| Sensitivity Analysis |
|
|
|
|
|
| Unit Drivers |
|
|
Expected NRV |
Revised NRV |
Change in % |
| Unit Sales (-20%) |
|
|
$ 6,592,661.30 |
$ 11,376,486.52 |
-73% |
| Per Unit (-20%) |
|
|
$ 6,592,661.30 |
$ 8,314,838.38 |
-26% |
| Variable Cost (+20%) |
|
|
$ 6,592,661.30 |
$ 9,462,956.43 |
-44% |
| Cash Fixed Cost (+100000) |
|
|
$ 6,592,661.30 |
$ 6,380,046.85 |
3% |
2.5 Identify and discuss any latest share or bond issuance by the selected company
JB Hi Fi Company is officially listed on Australia Stock Exchange on 23/10/2003. The issuer code of the company is JBH. According to the rating companies risks are balanced. The shares applied in 2019 have been raised 50%. The stock price have been listed recently is ₹ 34.860 with the increase of Rs +0.520 and +1.51% has been raised according to the relevant sources referred by the JB HI FI company. The company’s trends changes and fluctuations takes place.
Jb Hi Fi Company has been operated as a listed holding company in Australia. The company consists of most popular and trusted retail brands of home appliances whether major appliances and small appliances, home entertainment appliances etc are operated mainly in Australia (Goldstein, et. al., 2017). These brands are JB HI-FI and The Good Guys. The Good Guys is the subsidiary company of JB HI-FI Company. The capital structure of the company can be analyzed by latest statistics referred from the Wall Street Journal.
- Total Debt to Total Equity has been checked as 42.06.
- Total Debt to Total Capital is seen as 29.60.
- Total Debt to Total Assets ratios has been got 17.23.
- Interest Coverage received as 31.78
- Long-Term Debt to Equity Ratio we got is as 42.06.
- Long-Term Debt to Total Capitalism 29.60.
- Long-Term Debt to Assets ratio by the company is 0.17.
2.6 Calculate and discuss the PE ratios and share price movement of the selected company through 3 years.
PE Ratio means the price earnings ratio. The company PE ratio will show the actual market position of the company (Becker & Ivashina, 2015).The Highest the PE ratio the highest the company valuation. The company use this as an important analytical tool for the investors. It will be calculates as
P/E Ratio = Earnings per share / Market value per share
The PE ratio of the year 2019 is 16.0. This will show that the company is having good financial position and will have good image in the market.
The following graph will show you the movement of the PE ratio in the last years
(Figure: PE ratio)
(Source: Stockpedia, 2019)
III Recommendation letter
It is recommended that the Jb Hi Fi Australian Company to all the investors as it follows all the basic and ethical behaviour and code of conduct necessary to follow by everyone. The directors, staff and employees expect all the guidelines are followed. As we have look upon the comprehensive examination and analysed the firm’s financial performance from the updated financial statements of JB Hi Fi Australia.
This time company is growing with the increasing trend. The only competitor in front of JBH is KGN that’s Kogan limited. This time the sales have been hiked 3.5% to 7.1% billion in 2019. In order to have safe and easy returns investors can invest in the company.
Being an investment analyst, it is recommended to all the investors to invest in the Jb Hi Fi.The Company is performing well in the year 2019 and can write many stories of success in the upcoming years. The share price fluctuations are normal of JB HI FI. Company is viable to pay the liquid liabilities.
After going through a quick replay of the above questions, PEratiooftheyear2019is16.0it is clear that company is having good financial position and have good image in the market.
IV Conclusions
JB Hi Fi Company is a progressive company. It has set a benchmark for all those who wish to invest in home appliances products such as electronic appliances whether major or small appliances belonging to the company under the name JB Hi Fi. According to the statistical analysis we can say that company shows the best work done in 2019. We came to know about all the details of the company, because we studied the entire financial situation thoroughly.
The data has been researched and finalized with an accurate analysis of its condition, leading to the conclusion that JB Hi Fi has a strong position in Australia. In 2018, the price to income ratio was 18 xs. The higher the price to income ratio, the more optimistic the buyer will be about the company’s future performance. A company can reduce the price to income ratio by purchasing debt and spending cash. If the price to income ratio increases then it is better to deal in other companies rather than Jb Hi Fi Australia company.
References
- Becker, B., & Ivashina, V. (2015). Reaching for yield in the bond market. The Journal of Finance, 70(5), 1863-1902.
- Goldstein, I., Jiang, H., & Ng, D. T. (2017). Investor flows and fragility in corporate bond funds. Journal of Financial Economics, 126(3), 592-613.
- Huo, B. (2012). The impact of supply chain integration on company performance: an organizational capability perspective. Supply Chain Management: An International Journal, 17(6), 596-610.
- JB HI FI GROUP. (2019). Reports. [Online]. JB HI FI GROUP. http://annualreports.com/HostedData/AnnualReportArchive/J/ASX_JBH_2017.pdf [Accessed on 20.09.2019].
- Stockpedia. (2019).PE ratio. [Online] Stockpedai. Available at https://investors.jbhifi.com.au/wp-content/uploads/2019/08/4E_FY19.pdf. [Accessed on 20.09.2019].
- Talari, S., Shafie-Khah, M., Siano, P., Loia, V., Tommasetti, A., & Catalão, J. (2017). A review of smart cities based on the internet of things concept. Energies, 10(4), 421.
- Tandon, K., & Malhotra, N. (2013). Determinants of stock prices: Empirical evidence from NSE 100 companies. International Journal of Research in Management & Technology (IJRMT), ISSN, 2249, 9563.
Executive summary
Aristocratic leisure limited company is the Australia based company that deals in manufacturer of a Casino gaming system, and also provide international game technology. Aristocratic Leisure Company is the leader. The company gained 60 per cent share in the market to become the leader of the country. Aristocratic Leisure Company not only provides equipment to the company that deals with gaming system but also provide furniture and the major equipment to the other company also. The company also deals globally too as they support and supply the gaming system, and manufacture the furniture and equipment that is relevant to the casino based industry or gaming industry the country such as New Zealand, Japan, Europe and South American countries. They build a link between these country and supply material and equipment to them. The company is listed in the Australian stock exchange. In 2002 Aristocratic earn $976 million.
The company basic distribution or supply deals in the floor model type of equipment in the market. The company expanding its business and keep concentrate on producing large scale market by fulfilling the existing market demand and by structuring the future market for the company. The aristocratic leisure limited company will do all the above things by making strategies and forecasting and by implementing continuous improvement and by strategizing innovation.
Hence through this aristocratic leisure limited company will become the market leader and keep sustain this position by implementing the new and innovative strategies. Thus, they will taste the feeling of the market leader.
Company background
Aristocratic leisure limited company is the Australian based company that deals in manufacturing the gaming system for the casino and poker games and also develop and innovate the design time to time as according to the changes in the market and customer urging. Aristocratic leisure limited company is the market leader of a particular market. Aristocratic leisure limited company is the company that focuses on designing innovative gaming system that fascinates the audience and the customer and stimulate them to play it. Aristocratic leisure limited company becomes the leader of the market by sustaining 60 per cent market share. The company is also listed in Australia stock exchange.
Aristocratic leisure limited company not only provides a gaming system to the other company but also provide technical support too. The games that are virtually visible but also exist in actual version such as poker and casino game ranges are covered both digital as well as an existing market too. The customer usually plays this game for fun and for following their luck factor to earn money and pleasure by playing these games. The company diversified its market into different origins such as the diversification done as per the market structure and customer preferences. The company also provide furniture and gaming equipment with the innovative and exciting and attractive design model.
Hence, aristocratic leisure limited company as its name suggest the occupation of the company, the company have done proper branding as the person understand before buying the product, the company services and the product they deal in. The aristocratic company keep delivering their product overseas also as they building a link between the companies and also build collaboration that leads to increase the market value and the benefit of gaining trust from the shareholders and investors.
Thus, the company aims is to accomplish the present objective and building trust and simultaneously the company needs to focus on the planning and decision making to become the market leader and sustain that position in their upcoming years.
Business strategy analysis
The business strategy analysis is done with the help of porter fiver force models that reflect some point that helps to know the exact view and the strategy the is followed by the aristocratic leisure limited company is beneficial for firm growth or not. The company should aware of their competitor, customer, supplier and the substitute for their product so that they can make better arrangement and adjustment in their strategy to sustain that existing position and build their company position strong (Morden,2016).
Porter five force models are as follows:
(Sources: Aithal, 2016)
These are the five force model element that leads to analysing business strategy:
The entry of new substitute product:
The entry of the new substitute for the company product is the threat for the leading company as if the substitute will increase the threat will also increase on the company as it leads to diminishing the market share of the company. the company will face active competition with these substitute as the product quality differ but the efficiency that the company bring sis the same as in the case of the substitute product. So, because of this the substitute product entry will grab the customer that have less affordability power and lessen the chance of diverting this customer towards the company. Hence, to maintaining the flows and structuring the new customer is aware of the number of Substitute Company available in the market (Aithal, 2016).
The threat of competitor rivalry
The company faces various attack of competitor through their new innovative strategies and high range of product, the competition will be analysed by evaluating the market shareholder and the by the estimating and comparing the company balance sheet and their income statement with the competitor statement it will clear all the picture and convey the company about preparing their next step to be that impactful as it gives tough competition to the competitor or rival.
Number of suppliers
The company have to analysis their existing supplier so that they can make a choice between them and also analyse the supplier cost and the value that will adjust the sufficient profit for the year. The company should choose their supplier by tasting their material quality and quantity they offer in the reasonable cost range.
Buying power of customer
The company should make sure the buying power of the customer. Especially the company will make such a decision and considered these point if they thinking about expanding their market in the new region or originating new product. The company should analyse the customer demographically as well as by estimating existing customer.
The threat of new entry
Aristocratic leisure limited company should analyse the new entrant that can destroy their market. The company should focus on learning about new entrants keep analyse the market. So that they will easily save them from this kind of threat.
Hence are some analysis that may help aristocratic leisure company to analyse the market and make adjustment and changes according to the result they will gather after evaluating and formulating the above criteria and then make strategies according to it and focus on the threat areas that they will suffer if they will not take any initiative to take certain decision and policies to become stronger in the market and lead the country (Kabue, & Kilika, 2016).
Discussion about any accounting adjustment
Aristocratic leisure company keep focused on the accomplishment of the desired objective. The accomplishment will be done through various stages.
The company need to make the various report and formulization to gather the cost efficiency, the finance manager engages in comparison process so that for the future they can make a plan with least cost and with high benefit.
The various accounting adjustment has to be made to know the exact issue and performance that is carried out by the company experts and professional.
The company processes ratio analysis to let know the current flow, liquidity in the company, return on equity and also gather the net profit margin that has been reached in the particular year.
The accounting adjustment that the company essentially required to gather the equity information so that they can distribute the dividend effectively.
Another accounting adjustment that must be considered while preparing ratios is to make sure assets and liabilities are correctly calculated and all the information is reliable and valid till that year respect. So that they will cover all the ratios effectively and correctly and with valid transparency.
Hence, these are some accounting adjustment that should be considered by Aristocratic leisure limited company while comparing, calculating, classifying or while summarizing all the data that is gathered for the particular year or the particular period.
| Income statement for the three year |
| Particular |
2016-17 |
2017-18 |
2018-19 |
| revenue |
$2,128.70 |
$2,454 |
$3,549.80 |
| less: cost of revenue |
($872.70) |
($967.60) |
($1,577.50) |
| gross profit |
$3,001.40 |
$3,421.40 |
$5,127.30 |
| OTHER INCOME |
11.6 |
10 |
13.5 |
| Design and development cost |
($239.20) |
($268.40) |
($413.60) |
| sales and marketing cost |
($119.50) |
($116.80) |
($181.30) |
| general and administrative cost |
($301.50) |
($302.20) |
($512.50) |
| finance cost |
($100.20) |
($62.70) |
($115.30) |
| profit before income tax expenses |
($748.80) |
($740.10) |
($1,209.20) |
| income tax expenses |
($156.70) |
($233.00) |
($220.50) |
| net profit after income tax |
($592.10) |
($507.10) |
($988.70) |
| Balance sheet for the three year |
| Particulars |
2016-17 |
2017-18 |
2018-19 |
| Contributed Equity |
$693.80 |
$715.10 |
$715.10 |
| Reserves |
-$55.70 |
-$116.80 |
-$23.50 |
| Retained earnings |
$437.40 |
$747.30 |
$1,040.90 |
| Total Equity |
$1,075.50 |
$1,345.60 |
$1,732.50 |
| Cash and Cash Equivalent |
$283.20 |
$547.10 |
$428.10 |
| Other Current Assets |
$591.90 |
$647.90 |
$924.00 |
| Property, Plant and Equipment |
$217.50 |
$241.30 |
$389.30 |
| Intangible Assets |
$1,736.50 |
$1,687.70 |
$3,898.80 |
| Other non-current assets |
$158.60 |
$168.90 |
$206.60 |
| Total Assets |
$2,987.70 |
$3,292.90 |
$5,846.80 |
| Current Payables and other liabilities |
$434.90 |
$460.00 |
$821.10 |
| Current borrowings |
|
$0.10 |
|
| Current tax liabilities and provisions |
$114.30 |
$193.00 |
$196.40 |
| Non-current borrowings |
$1,287.80 |
$1,199.30 |
$2,881.10 |
| Non-current provisions |
$13.40 |
$13.80 |
$13.80 |
| Other non-current liabilities |
$61.80 |
$81.10 |
$201.90 |
| Total liabilities |
$1,912.20 |
$1,947.30 |
$4,114.30 |
| Net assets |
$1,075.50 |
$1,345.60 |
$1,732.50 |
| Cash flow statement |
|
|
|
| Particulars |
2016-2017 |
2017-2018 |
2018-2019 |
| Net cash flow from operating activity |
$680.50 |
$799.10 |
$933.80 |
| Net cash flow from investing activity |
-$209.30 |
-$236.50 |
-$2,207.60 |
| Net cash inflow from financing activity |
-$506.40 |
-$296.60 |
$1,135.20 |
| DuPont analysis |
| Sino. |
|
Particular |
2016-17$ |
|
2017-18$ |
|
2018-19$ |
|
| 1 |
net profit margin |
Net Profit Before Tax |
$507.20 |
0.238267487 |
$728.10 |
0.296723449 |
$867.60 |
0.239397368 |
| |
|
Sales |
$ 2,128.70 |
|
$2,453.80 |
|
$3,624.10 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| 2 |
Assets turnover |
Sales |
$2,128.70 |
0.712487867 |
$2,453.80 |
0.745179022 |
$3,624.10 |
0.619843333 |
| |
|
Total assets |
$2,987.70 |
|
$3,292.90 |
|
$5,846.80 |
|
| |
|
|
|
|
|
|
|
|
| 3 |
Financial leverage |
total assets |
$2,987.70 |
2.777963738 |
$3,292.90 |
$2.45 |
$5,846.80 |
$3.37 |
| |
|
total equity |
$1,075.50 |
|
$1,345.60 |
|
1,732.50 |
|
| |
|
|
|
|
|
|
|
|
| |
DuPont analysis |
net profit margin*asset turnover *financial leverage |
|
|
|
|
|
|
| |
|
2016-2017$ |
0.471594607 |
|
|
|
|
|
| |
|
2017-2018$ |
$0.54 |
|
|
|
|
|
| |
|
2018-2019$ |
$0.50 |
|
|
|
|
|
| value of firm = market value of common equity + market value of preferred equity + market value of debt + minority interest-cash and cash investments |
|
| value of equity = share price * shares outstanding |
|
| value of firm |
3168.1 |
| value of equity |
$54,781.65 |
|
|
| share price |
$31.62 |
Justification of Assumption
If Aristocratic Company follows the entire relevant element while studying and analysing the market they will gain growth in the market.
If the aristocratic company should focus on analysing new entrant, as it reflects the knowledge with regards to new company their product specialization and their impact on the company share.
The company will also do these analyses to distinct their market from the competitor market.
The company will also know their customer belief and trust factor for knowing the customer value towards the company.
Hence these are some assumption that leads to make changes in the company and result in the accomplishment of the objective, mission and vision of the company. Thus this will lead to the growth of the company.
The firm is earning a net profit in the year is $3.62bn as compare to the year 2017 it is higher that is $2.62bn that reflect that the company successfully maintained their revenue every year and stabilize the firm growth by implementing best strategies and gaining sufficient amount of output.
Hence it clears that Aristocratic leisure limited company keep doing business strategies analysis to keep sustain in the market by increasing in their revenue with increment to the shares in the market (William & Dobelman, 2017).
Comparison of the firm growth rate through comparison between the preceding three years profit and loss account:
In 2018 the company is earning higher profit as compared to their previous year net profit that is $867m.it showcase that the company is in the stable and following growth rate formulae to accomplish the objective to become the market as well as a global leader.
In comparison with the balance sheet of the company is well organized as compared to the previous year as it contains more positive balance than a negative balance.
The company performance is also improved as compared to previous performance scale.
The company revenue also increases as compared to previous year revenue that is $3624.1 that is in 2017is $2453.8 that showcase the massive hike in the current revenue.
The company cash flow statement is reflecting better result as compare to previous year cash flow statement.
Hence if the company lookout overall change it is favourable and great changes that occur during this year and the company also holds the opportunity to give a higher dividend to their shareholder and their partners. Aristocratic Leisure Company is enjoying immense growth rates and that will engage them to think upon to formulate better prospectus and plan to enjoy that sustainability again (Schroeder, et.al., 2019).
Company future pre-assumption regarding their growth rate
Aristocratic leisure limited company keeps focusing on becoming the market as well as a global gaming company that provides a variety of gaming system all over the world and the company basic vision is to expand its business globally.
The adjustment is being made to keep the objective in mind. Aristocratic leisure limited company keep changes their product ranges and keep producing the latest and upgraded games with the digital format as well as real word format too.
The keep adheres to design best and innovative game ranges with attractive packing and with the exciting format of the games. The technical team of aristocratic leisure limited company keep indulging themselves in achieving the desired objective by building the best version of their next gaming ranges. so that this will help the company to set up the product into a new market with an existing position as this will helps to grab market penetration and further, it will result in increasing the product sales and automatically will result in gaining high amount of profit.
The benefit of this entire will later share with their shareholder and this will increase the trust of the shareholders on the company and encourage them to put more investment and proposed more proposals and give the chance to take the opportunity to initiate the same.
Hence Aristocratic company focuses on sustainability in the position and development in the gaming system with fastest and innovative gaming product and to have customer belief and trust with affordable pricing with before earning sufficient amount of profit and also to increase the market value of the company (Stindt, et.al.,2017).
Conclusion about the value of the firm and value of equity
Aristocratic leisure company is enjoying better position in the market in the year 2018 as in this year their revenue is raised by 2.5 per cent that results in high profitability and with the essence of the good services and product deliverability they urge more customer trust result assigning leading position in the Australian market as well as they successfully publish themselves in the global market too. The value that aristocratic company opt in the global market is they grab 2.56 per cent of their market value there that leads them to expand their business in other countries too. The responses will give them the confidence to raise their market overseas too. The value of equity that they distribute in the year 2018 is contributing equity is $715.1 and the amount that put in reserve is $(23.5) and the retained earnings that the company $1040.9 and the total value of equity that has been arising after separating all these amounts is $1732.5. The equity value of the company is also rise as compare to previous year equity that is $1345.6 that means the company has been successfully increase their equity value in the market with means that they sustain their equity share in the domestic market as they listed themselves in the stock exchange of Australia that becomes the responsibility of the company to raise their market value to secure their funds in the stock exchange market and add up the value every year to gain valuable market share , bonus and also it will be secure as for future investment purpose . Hence, the company is raising its market value year by year and enjoying the leading position in the domestic market as well as in the global market.
References
Aithal, P. S. (2016). Study on ABCD analysis technique for business models, business strategies, operating concepts & business systems. International Journal in Management and Social Science, 4(1).
Aristocratic leisure limited (2019) about us [online] Aristocratic leisure limited available at https://www.referenceforbusiness.com/history2/99/Aristocrat-Leisure-Limited.html [access on 31 October 2019]
Aristocratic leisure limited (2019) annual report [online] Aristocratic leisure limited available at https://ir.aristocrat.com/static-files/8a63b725-9d18-403b-a6cb-ae3b6af43acc[access on 31 October 2019]
Kabue, L. W., & Kilika, J. M. (2016). Firm resources, core competencies and sustainable competitive advantage: An integrative theoretical framework. Journal of management and strategy, 7(1), 98-108.
Morden, T. (2016). Principles of strategic management. Routledge.
Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial accounting theory and analysis: text and cases. John Wiley & Sons.
Stindt, D., Quariguasi Frota Neto, J., Nuss, C., Dirr, M., Jakowczyk, M., Gibson, A., & Tuma, A. (2017). On the attractiveness of product recovery: The forces that shape reverse markets. Journal of Industrial Ecology, 21(4), 980-994.
Williams, E. E., & Dobelman, J. A. (2017). Financial statement analysis. World Scientific Book Chapters, 109-169.
Abstract
In this study, two major companies have to be selected which should be listed on the Australian Securities Exchange. The companies name is Dexsus and Goodman companies, where both companies are listed in ASX real estate property dealing services. This reading will explain and compare between the Balance sheet, Items listed in these financial statements in the sections of owners’ equity and liability. This study will reveal and analyse the procedure of the preceding three-yearly movements of profit and loss of both companies.
Introduction
This research & study will reveal and determine the essential points that explain the significance of regulating financial accounting and management in the company. This reporting will explain the condition of the manager if they would able to disclose the information related to a financial decision or not. The assignment will also highlight the nature of the study and rules and regulation of the Australian Accounting Standards Board (AASB) in terms of setting accounting standards worldwide. It will describe the reason why the IASB is not regarded as mandatory for IASB members. Focusing on sole purposes of this part, in this research and the two companies from similar industries has been chosen and they are included in the Australian Security Exchange. Companies names are Dexsus and Goodman and both are from the Real Estate industry. The annual reports of these companies could be analysed from last three years in which proper analysis will be made related to items of equity, debt and revenue relation and so on. Companies balance sheet, the consolidated financial statement of profit and loss and annual report will be discussed based on last three years data including the list of equity, debts and revenue of the organisation.
Part A
(i) What items have been recorded under the owners’ equity section? Clearly explain.
Focusing on sole purposes of this part, in this research and the two companies from similar industries has been chosen and they are included in the Australian Security Exchange. Companies names are Dexsus and Goodman and both are from the Real Estate industry. The annual reports of these companies could be analysed from last three years in which proper analysis will be made related to items of equity, debt and revenue relation and so on.
The items mentioned in the list of equities are paid-up capital, reserve surpluses, retaining earning and accumulated loss for the company.
- Capital Issues and paid-up capital:The share that has been allotted and issued to the stakeholders of the company. These shares are allotted are entitled from the part of authorised capital. Issued capital in the form of total authorised capital, so in the case of Dexus the total issued capital would be $4516 m. and in the case of Goodman, the total authorised capital is $56715 m, from which the issues capital is $4315 m.
- Reserves: reserves are an option in the assets where the company can attain high liquid and easily convertible into fund and cash to meet future and basic deadlines. These finds can be used for an emergency and establish a similar entitlement of the projects.
- Retained earnings and accumulated losses:
Retained earnings and accumulated income can be considered as an aggregated net income of the companies which is accumulated by the companies, it is incepted accordingly establishment of the current dates of the financial reporting (Tykvová & Borell, 2012).
Accumulated losses define the deficit and losses of the companies where the retained earnings of the companies become negative. These accumulated losses cumulatively incurred by the accounting standards since the part of inception.
(ii) Explain the movement in each item recorded under the owner equity section with the reason.
Issued capital: the issues capital of the company name Dexsus has been increased over last financial Years which was $4536 in FY2015 and increased by $1390 in FY2018. These could be happened due to the issuance of more shares of common stocks that raised the capital budgeting in regards to funding business operational tasks. On the other side, the capital budgeting and issues capital have been reduced by $2935 in the comparison of the last three years.
Reserves: the reserves of all two companies discussed above have been increased and fluctuating from last 3 years FY 2015 TO 2018. The reserves have been increasing in both companies’ cases because firms are not able to set more financial actions and meeting the uncertainties in the companies (Bobryshev, et. al., 2014).
Accumulated losses and retained earnings: for the financial years 2015, including FY16 & FY17-18, Both firms have been accumulated losses that have been increased rapidly. Both companies have bearing great attentive losses due to negative operational profits and purposes.
(iii) What items have been recorded under the liabilities section? Clearly explain.
Liabilities are the commitment and obligations of the companies. Liabilities are taken as those amounts where companies need to meet their short terms and long-term obligations to owe the creditors. In the format of the account, these words as Payable can be used generally for meeting liabilities.
The creditor is also an asset of the companies where they usually receive an advance for future assistance and help referred to liabilities. Following are the illustrations of liabilities described as the balance sheet of Dexsus and Goodman Ltd.:
- Accounting payable
- Salary payable
- Interest payable
- Wages payable
- Deposit to the customers
- Warranties
- Lawsuits to the customers
- Unearned bond
- Unearned revenue
- Other accrued payables
- Income tax payables
- Bond payables
Normally accounts related to liabilities shows credit and debit both balances, where liabilities account debit balance keep negative and opposite credit balance in a liability account.
Following transactions can be taken as Dexsus and Goodman limited includes:
Discounted notes payable
Discounted bond bob
Cost bond issues
Cost debt issues.
Current Customers’ problems,
(iv) Explain the movement in each item recorded under liabilities section with reason.
There are two types of liabilities one is current and other is non-current liabilities.
- Short terms Liabilities
- Long term liabilities
Current liabilities and long-term liabilities:
Both companies name Dexsus and Goodman have been creating a debt of $3023 and $4098 in last three years. there are no genuine changes in the debt of both of the companies. Principle amount should be shared as several long-term liabilities. Interest on loans cannot be decided and considered as pure liabilities before relating it to the future. Unpaid interest can be figured out as a liability until the balance sheet data has been uncovered (Bobryshev, et. al., 2014).
(iv) Explain the movement in each item recorded under liabilities section with reason.
There are two types of liabilities one is current and other is non-current liabilities.
Current liabilities:
After exercising the Balance Sheets of both of the companies name Dexsus and Goodman, it is observed that both companies have short terms or current liabilities before long terms liabilities to maintain their daily and regular obligations and working expenses. In Dexus, the current liabilities is $8561 Million and in Goodman Limited it is $7416 million in 2016, it has increased in long few years and by $917& $870 million in respect both of the companies Dexsus & Goodman in 2018. Both companies name Dexsus and Goodman have been creating a debt of $3023 and $4098 in last three years. there are no genuine changes in the debt of both of the companies. Principle amount should be shared as several long-term liabilities. Interest on loans cannot be decided and considered as pure liabilities before relating it to the future.
Following current liabilities are:
Wages payable: earned income should be the total income of the employees which he should earn but not received will be counted as wages payable. In most of the companies, employees are being paid in every two weeks, which changes the obligations. In Goodman Ltd. The payment of wages is usually made twice in the month that creates a difference in wages payable calculations in both of the companies.
Interest payable:
Dexus and Goodman company have the same method of purchases of goods and services over the last three years, companies are even given the facilities to the employees and workers to use their credits of such type of purchases (Macht and Weatherston, 2014).
Dividend payable:
Both companies issue stock to their employees and investors and pay them the amount in the consideration of dividend after the declaration, they both owed to shareholders.
Non-Current liabilities:
Liabilities which cannot be used as non-current liabilities, which have their long term duration more than 5 years such as bongs payable have long terms durations, long terms debts, policies can be counted as largest liabilities.
Options of Long-term liabilities:
Warranty Liabilities:
Some liabilities which cannot be accurate or estimated correctly. Estimate amount of the long term warranty can be spent over to repair the product and in given services can be taken as a warranty period.
Lawsuit Payable:
The liability which cannot be anticipated and required more investigations, in the lawsuit payable it considered as probable and with anticipation mark. Anticipation includes the cost of court, attorney and settled fees of the court (Barnes & Smyth, 2013).
(v) Briefly explain the relative advantages or disadvantages of each source of fund.
The company’s sources of fund and its advantages and disadvantages are as follows:
- Bank Loan:
Merits of bank loan:
- It is easy to receive a large amount and doesn’t take a long period to get it.
- Provide secure and stability transactions of money, in today’s day’s banks are providing various tools for the safety of money and the security from false activities/
- Obtaining tax benefits: taxes cannot be paid on the earned amount only to pay interest and loans.
- It gives the facilities of non-withdrawn amount on earning.
Disadvantages of bank loans:
- Rates are very high.
- Limitation in withdrawing funds,
- High terms and regulation in case of legal works.
- Applications of loan, granting, sanctioning the loan- the long procedure is there that we have to follow.
- Advantages of equity raising:
- No extra charges: there are no internal charges on equity raising from the public requirement.
- No payback facilities.
- Long term and strong financial growth.
- Not long-term procedures we need to follow
- Advantages of enhanced procedures and responsibilities.
- Figure out of increased equities means increment in the share of profit.
Disadvantages:
- Less tax benefit
- Compulsory to pay a dividend.
- Threat and security issues
- Financing Through debt:
Advantages:
- Low tax rates.
- High tax benefit (Macht& Weatherston, 2014).
- Limitation in procedures.
Disadvantages:
- High-risk level
- Debt equity ratio management is high
- Short term source
- Long term formalities have to maintain.
Part B
Conduct Research and critically examine the concepts of a small proprietary company, large proprietary company and reporting entity.
When the research and survey were started to figure out the entity of reporting team in the context of regulation of financial accounting in small scale and long term businesses, it is necessary to disclose the financial values and outcomes in interchanging factors, regulations and norms while managing financial reporting. (Collis, 2012). There are some major conflicts in the market related to capital and funding process of financial instruments that are largely being occupied by capitalists, financers and funding organisations. Favourable incentives and interest have become necessary in the financial reporting to amplify and implicate the wealth of the shareholders (Ferreira, et. al., 2012).
Disclosure on material becomes necessary and entering all non-disclosure information are become necessary for firms and small institutions in case of excessing the price level and compare it with the competitors. It became essential for the firm to disclose information correctly so that financial information can be collected effectively. It may increase the interest level of employees and potential investors to assume that there can be right and wrong before taking any investment decision. Non-disclosure of the right information might reduce the interest of potential investors. Sometimes the share prices of the firm bid down and would continuously lose their values in the comparison of competing firms.
In addition to this research, it can be concluded that this proposition can support by the fact of regulating bodies in small and big industries should be both specific in terms of financial decision, market norms and business perspective. It has been found the most of the firm might not willing to disclose the information which could be in favour of their primary competitors. Non-disclosing the details create liabilities and lack of transparency for companies in terms of competitors. Such decisions of non-making disclosure become bad and nonrelevant in the case of measuring benefits which would be economic wide (Acaciacoal,2019).
It became essential for the firm to disclose information correctly so that financial information can be collected effectively. It may increase the interest level of employees and potential investors to assume that there can be right and wrong before taking any investment decision. Non-disclosure of the right information might reduce the interest of potential investors. Sometimes the share prices of the firm bid down and would continuously lose their values in the comparison of competing firms. According to the research, there are many ways to settle down the things with the help of AASB, AASB participates to settle down the accounting standards worldwide. It the major aim of AASN is to figure out the issues of financial reporting across the globe and measure the necessity of developing and managing the financial reporting standards. It helps in creating assurance of documents, maintaining policies, incorporation of documented papers and creating exposure drafts of IASB to encourage the financial reporting procedures in Australia. Furthermore, AASB helps to make effective participation in IASB projects and maintain the documenting procedure with promoting the standards and improve them appropriately (Ferreira, et. al., 2012).
Conclusion
This reading was explained and compared between Balance sheet, Items listed in these financial statements in the sections of owners’ equity and liability. This study revealed and analysed the procedure of the preceding three-yearly movements of profit and loss of both companies. According to the research, there are many ways to settle down the things with the help of AASB, AASB participates to settle down the accounting standards worldwide. It the major aim of AASN is to figure out the issues of financial reporting across the globe and measure the necessity of developing and managing the financial reporting standards. The assignment has also highlighted the nature of the study and rules and regulation of the Australian Accounting Standards Board (AASB) in terms of setting accounting standards worldwide. It was described as the reason, why the IASB is not regarded as mandatory for IASB members.
References
- Ai, H. and Kiku, D., 2013. Growth to value: Option exercise and the cross-section of equity returns. Journal of Financial Economics, 107(2), pp.325-349.
- Barnes, S. and Smyth, D., 2013. The government’s balance sheet after the crisis: A comprehensive perspective. Irish Fiscal Advisory Council, Dublin.
- Bobryshev, A.N., Uryadova, T.N., Lyubenkova, E.P., Yakovenko, V.S. and Alekseeva, O.A., 2014. Analytical and management approach to modelling of the accounting balance sheet. Life Science Journal, 11(8), pp.502-506.
- Collis, J., 2012. Determinants of voluntary audit and voluntary full accounts in micro-and non-micro small companies in the UK. Accounting and Business Research, 42(4), pp.441-468.
- Ferreira, A.L., Branco, M.C. and Moreira, J.A., 2012. Factors influencing intellectual capital disclosure by Portuguese companies. International Journal of Accounting and Financial Reporting, 2(2), p.278.
- Macht, S.A. and Weatherston, J., 2014. The benefits of online crowdfunding for fund‐seeking business ventures. Strategic Change, 23(1‐2), pp.1-14.
- Tykvová, T. and Borell, M., 2012. Do private equity owners increase the risk of financial distress and bankruptcy?. Journal of Corporate Finance, 18(1), pp.138-150.
Introduction:
This assignment describes the significance and the role of an accountant related to his or her, work, job responsibilities, rights and attitudes towards his work. A proper survey and search will be done in the regards of analysing the key accounting roles and profile of an accountant related to ASX companies. This study will include the ways to describe the jobs of corporate accountants, financial accountants and including their duties, required skills and talents. A proper assignment structure will be given in this study, where it will provide knowledge of companies’ strategies to hire eligible and skilled accountants as per their requirements. The skills and requirements we need in an accountant will be considered in this study to progress the work profile. An accountant would be qualified and shortlisted as per their requirements and duties of the companies related to this corporate accountant job. An accountant job role should have contained all necessary attributes related to the development in this profile.
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Collection and details of job advertisement data and sources:
With effective research and survey, it can be said that there are around 5000+ accounting jobs on Indeed Australia. There are around 4578 job profiles related to financial and corporate accounting jobs to Seek Australia. Total 11265 profiles in Jora Australia related to Australian Accounting jobs. There is around 24863 accounting profile related to accountant jobs in Australia we can find in online job sites specifically in Jora, Indeed and Seek.
After the survey, the job information collected from different job sources such as Seek, Indeed and Jora. Total collected job information and details related to corporate accountants in Australia were collected from all these job portals are total 30.
| Serial No. |
Source of Job corporate accountants |
Total job advertisement |
| 1 |
Indeed |
15 |
| 2 |
Seek |
5 |
| 3 |
Jora |
10 |
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Name of the organisation and industrial Breakdown:
| Name of the organisations |
Industrial Breakdown |
Location |
| Intuitive Recruitment |
Recruitment Industry |
Sydney – NSW |
| Racing Victoria |
Media Organisation |
Docklands VIC |
| Beach Energy Ltd |
Oil & Gas |
Sydney – NSW |
| MPAU Finance |
Finance Sector |
Brisbane QLD |
| Hedley Scott Recruitment |
Recruitment industry |
Sydney-NSW |
| C CAR Installations |
Manufacturing Company |
Sydney-NSW |
| Waterlogic |
Manufacturing Company |
Osborne-Park WA |
| Pirtek Fluid Systems |
Fluid and Hydraulic |
Kings Park NSW |
| Doyle Executive |
Foreign affairs |
Sydney NSW |
| DFP Recruitment |
Recruitment Agency |
Kings Park WA |
| HR Matrix Pty Ltd |
Employment and recruitment |
Brisbane QLD |
| Konnexus |
Consulting Agency |
Sydney – NSW |
| Aldi Stores |
Groceries |
Kings Park |
| Talent Options Sydney |
Human Resources |
Sydney – NSW |
| Mine Super |
Recruitment Agency |
Sydney Park |
| Suncorp |
Banking and Finance |
Sydney Park |
| Robert Half Financing and accounting |
Finance Sector |
Kings Park NSW |
| Future you |
Recruitment Agency |
Brisbane QLD |
| Paybang Pty Ltd |
Not applicable |
Sydney Park |
| Orbital Australia |
Fuel and gas |
Brisbane QLD |
| T+O+M executive |
Recruitment firm |
Osborne-Park WA |
| TW Power Services Pvt. Ltd |
Energy and Power |
Sydney Park |
| Moore Stephens Pvt Ltd |
Finance and Accounts |
Kings Park NSW |
| Accent Resources NI |
Food |
Sydney Park |
| GFG Alliance |
Energy |
Brisbane QLD |
| 2X M Finance |
Finance |
Osborne-Park WA |
| Moir Group |
Finance |
Brisbane |
| Robert Walter |
Recruitment |
Sydney – NSW |
| DFp Accounting |
Energy |
Sydney – NSW |
| Redpath Partners Pty Ltd |
Energy |
Sydney – NSW |
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Job title and the description mentioned in Job portal and advertisement:
| Serial No. |
Job portals |
Job ads & Titles |
| 1 |
Indeed |
Corporate Accountant, Senior Accountant-corporate, Assistant Accountant, Financial Investor, Accountant – corporate assistant.
Assistant accountant. Corporate accountant, financial accountant, Accountants, Assistant Corporate Accountant.
Treasury accountant, accounting payable clerk, Forensic Accountant |
| 2 |
Jora |
Payable Accountant, receivable Accountant, Corporate Accountant, Assistant Accountant – corporate.
Assistant accountant. Corporate accountant, financial accountant, Accountants, Assistant Corporate Accountant. |
| 3 |
Seek |
Assistant accountant. Corporate accountant, financial accountant, Accountants, Assistant Corporate Accountant.
Treasury accountant, accounting payable clerk, Forensic Accountant
Corporate Accountant, Senior Accountant-corporate, Assistant Accountant, Financial Investor, Accountant – corporate assistant. |
-
Personal attributes needed in corporate accountant mentioned in job advertisement:
The personal attributed which are required in the corporate accountant mentioned in the job advertisement given below:
- The person should have accounting skills and experience to pay attention and the ability to work under pressure.
- The accountant has to carry interpersonal skills and excellent communication skills to maintain the relationship between accounting requirements and cost.
- An individual should possess the intellectual skills, practical thinking, quick decision-making ability and ability to adapt to new challenges.
- The person should be ambitious, creative, practical and should bring various initiatives to perform their responsibilities.
- The person should be able to work with a team, coordinate with team members and seniors and work under pressure.
- The person should be able to value their work, ready to give their 100% with devotion and dedication (Balakrishnan, et, al., 2018).
- The individual should possess technical skills to make a decision quickly, should have positive and collaborative attitudes towards work.
- The person should be strong practical and analytical skills to understand the requirements and needs of the company.
- They should have a focus on minor changes and requirements that help them to create logical solutions.
- An individual should possess the ability to motivate the people and their team in the organisation.
- The person should be able to communicate clearly and have a spirit to drive a team.
- They should possess an ability to figure out the things and play a dynamic role as a team player to encourage their team regularly.
- An i
- ndividual should be able to handle responsibilities and meet the deadline of the organisation and department.
- The person should be passionate about their work and task to help the team and department to achieve targets and goals.
- The person should be target solver, practical thinker, capable to handle pressure and able to handle the situation related to clients and stakeholders.
- Must have the ability to become a corporate supportive and creative thinker, good leader and supporter for others in the team member (Ellis, 2018).
-
Key roles and task and job responsibilities of corporate accountants given in the advertisements:
The listed task and job required responsibilities given in the job advertisement for a corporate accountant is given below:
- Financial and accounting reporting is required to be done monthly, quarterly and annually.
- A person needs to complete all bookkeeping tasks, taking care of financial data and implication effectively.
- To prepare the financial report, balance sheet and consolidated statements of accounting books of the organisation.
- Able to handle SAP – different accounting modules.
- To prepare and present bookkeeping and handle the complete valuation of business entities.
- Compiling bank statements and accounting records of the company.
- The corporate accountant needs to join the team as soon as possible and perform a different role in a team.
- Looking for a person who can understand business accounting needs and bale to perform financial reports and transactions effectively.
- Ability to define mistake and figure out the errors in transactions, hands-on-experience of using Different SAP modules and financial software and accounting systems.
- Ability to figure out treasury and tax accounting management effectively to measure data and financial evidence.
- Seeking for experienced and hardworking employee and the candidate who can timely process the requirement, accounting process, delivery and information.
- The person who assist their senior and support junior in the team.
- Ability to understand the attend recurrent financial and accounting journals and vales.
- Preparing financial statements, applicating various accounting rules and regulations.
- Able to implicate accounting standards and regulate the budgeting process, it will be helpful for the company to manage finance by the council (Adhariani, et, al., 2019).
- Understand and govern complex demands of accounting norms and standards-based financial process.
- Working with seniors, able to give reporting timely to provide effective accounting solutions and decision-making process in the business.
- The person should be able to manage than the requirement of accounting department with the help of accounting standards and corporate norms (Allen, et. al., 2018).
- He can work and perform well to support the accounting department to provide quality services to the organisation.
- Maintenance of accounting software, SAP and create logical analysis to give accurate feedback about the financial condition of the companies.
- Able to prepare and, making journals, posting ledgers perform ledgers and compiling data with the other relevant adjustments.
- Handle all mandatory regulations, preparing analytical reports, submitting the consolidated financial reports and statements to the company (Ellis, 2018).
-
Professional and accounting qualification needs to be posted in the job advertisements:
The various academic and professional qualification needs are addressed in the job portals related to corporate accountants:
- The person should possess a degree of Bachelors in Accounts and Finance, should have completed CA and have more than 3 years of experience practising as a qualified CA.
- The person should be well experienced and depth knowledge of financial regulation, accounting and taxation amendments occurred every year (Nasr, et, al., 2018).
- Should be possessed depth knowledge of accounting standards and have hands-on experience working with accounting firms for more than 3 years (Owolabi, 2019).
- An individual should have well experience in tertiary qualification in accounting and knowledge of the field of finance and accounts.
- Ability to understand the attend recurrent financial and accounting journals and vales.
- Preparing financial statements, applicating various accounting rules and regulations.
- Able to implicate accounting standards and regulate the budgeting process, it will be helpful for the company to manage finance by the council (Adhariani, et, al., 2019).
- Understand and govern complex demands of accounting norms and standards-based financial process.
- Working with seniors, able to give reporting timely to provide effective accounting solutions and decision-making process in the business.
- The person should be able to manage than the requirement of accounting department with the help of accounting standards and corporate norms (Allen, et. al., 2018).
- He can work and perform well to support the accounting department to provide quality services to the organisation.
- Looking for a person who can understand business accounting needs and bale to perform financial reports and transactions effectively.
- Ability to define mistake and figure out the errors in transactions, hands-on experience of using Different SAP modules and financial software and accounting systems.
- Ability to figure out treasury and tax accounting management effectively to measure data and financial evidence.
- Seeking for experienced and hardworking employee and the candidate who can timely process the requirement, accounting process, delivery and information.
- A person should possess knowledge of Microsoft offices and access.
- Should be able to understand the accounting requirements and prior qualification and experience in the field of cost accounts.
- Knowledge and experience of an audit or chartered accounting process should be able to adapt to handle the work of 1000+ people (Owolabi, et, al., 2019).
- The person should have the ability to qualify the accounting aspects and can prepare a financial statement and working experience with SAP.
- Experience in the areas of Taxation handling, profit and expenses records and handle deferred tax calculations.
- SAP, ORACLE and TM1 is the plus. An individual can handle taxation and budgeting responsibilities of the company, able to work to enhance the rapport of the company.
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The key roles learnt in MPA unit and the terms related to the advertisement collected:
There are various tasks, roles and job responsibilities collected in job advertisement from different job portal in Australia which is necessary for a corporate accountant to possess such as responsibilities and roles. These are:
Managing financial data:
As per task learnt in the unit, this is the initial task of an accountant to manage its corporate roles and responsibilities. The role of an accountant includes various categories such as preparation and presentation of reports and accounting data, handle bookkeeping and organisational structure part related to tax, budget, cost and revenue. The corporate accountants need to take care of accounting systems, manage records, books and vouchers efficiently. The corporate accountant has to manage to cost and figure out actual financial conditions through the financial report prepared quarterly, annually and monthly (Nasr, et, al., 2018).
- Preparing financial statements and reports according to various accounting standards and rules.
- Working as a helping hand in an operational and financial matter to create accurate and exact financial capital reports for investor and stakeholders. It helps the council and other people in the department to complete the budgeting process effectively.
- Managing financial evidence, vouchers and invoices using SAP and TM1 software for accurate and error-free ledger and journals for the department (Schroeder, et, al., 2019).
Accounting report preparation:
The next of the Accountant incorporate field is to figure the errors and mistakes while making and preparing accounting report, an accountant takes care of vouchers, invoices and other accounting transactions and entries should be transacted based on evidence and proves, financial and accounting report are prepared essentially on monthly, quarterly and annual basis. The report needs to be prepared error and mistakes free after taking care of different accounting principles such as dual aspects principles, accrual principle and principle of consistency for the business (Okwuosa & Amaeshi, 2018).
- Preparation and presentation of profit and loss accounts.
- Compiling and consolidating the financial accounts and budgeting process.
- To prepare the report and present analytical report in the group before submitting consolidated financial results to the German Group.
Regulatory and financial bodies:
The corporate accountant should be taken care of their responsibilities of handling accounting standards, performing accounting deadlines without missing internal and external deadlines. Regulatory bodies make accounting norms and standards which are needed to be resolved and performed on time with the help of accurate and qualified data (Wardhana, 2018).
- The person should have the ability to exercise the responsibilities, manage accounting data and financial costs (Adhariani, et, al., 2019).
- Able to compare projected and actual financial report according to accounting principles and standards.
- Can prepare analytical reports after submitting a report to meet the deadlines.
- Consolidation of financial and accounting data within the organisation (Ellis, 2018)
-
Additional topic missing in Unit MPA but those are listed in the Job description of Corporate accountants:
Missing points in MPA units are:
Analytical advisor:
The corporate accountants should be able to handle the analytical task and give analytical advice to the necessary team. The information they can use to manage the logical demands of finance for the existence of the business. Corporate accountants should work as a logical and analytical advisor so that management can use their skills in making financial decisions effectively (Crowther, 2018).
- The person should have technical skills to take technical decision based on accounting abilities.
- A person should be interpersonal skills to motivate team members and prepare financial accounts quarterly and annually.
- Should be responsible to handle group accounting meetings, take decision-related to statutory matters of compliance, ASX reporting and accounts investors listing.
- Responsible to assist corporate trainers, CA and higher accounting authorities.
- Give assistance and support to finance managers, provide authority and quality services in accounting services (Warren & Jones, 2018).
External business targets:
The corporate accountants should be able to work accounting professionals, they should understand the requirements of business affiliations and. Financial professionals expect from financial experts to perform their roles and responsibilities in regards to ASX reporting, handling the accounting process of the organisation.
The accountant should have abled to handle and engage in maintaining financial transparency. The example of such job description is given below:
- The person should be able to prepare analytical skills and financial reports.
- Understand the needs of transparency of financial information that involves business changes, financial innovative skills and ability to understand business needs. (Balakrishnan, et, al., 2018).
-
Skills, responsibilities and attributes needed to become a corporate accountant:
Innovation:
Accounting standards and principles are needed to be implemented in the business from the first day it started. Innovative and creative ideas are necessary for the business to handle the cost and revenue generation process. Corporate accountants should have skills and attributes to understand business challenges and give analytical advice to the company. Innovation is necessary for ideas, views and business which is mentioned in the job description for the accountants that states and delivers the needs of innovation skills in employees (Smith, 2018).
Understanding of accounting norms:
The corporate accountant should be able to handle accounting work based on his analytical The next of the Accountant incorporate field is to figure the errors and mistakes while making and preparing accounting report, an accountant takes care of vouchers, invoices and other accounting transactions and entries should be transacted based on evidence and proves, financial and accounting report are prepared essentially on monthly, quarterly and annual basis (Pal, 2019).
Enthusiasm:
The corporate accountant should have a responsibility to show enthusiasm in their jobs and able to encourage their team members in the organisation. Accountants should have practical thinker and problem solver that add power to their duties. The person should have brought energy and enthusiasm to their team members and enhance the engagement of accounting skills. The person should have the ability to exercise the responsibilities, manage accounting data and financial costs. Able to compare projected and actual financial report according to accounting principles and standards. Accountants can prepare analytical reports after submitting a report to meet the deadlines & consolidation of financial and accounting data within the organisation (Schroeder, et, al., 2019).
Conclusion
The role of an accountant includes various categories such as preparation and presentation of reports and accounting data, handle bookkeeping and organisational structure part related to tax, budget, cost and revenue. The corporate accountants need to take care of accounting systems, manage records, books and vouchers effectively. This study included different ways to describe the jobs of corporate accountants, financial accountants and including their duties, required skills and talents. A proper assignment structure has been given in this study, where it will provide knowledge of companies’ strategies to hire eligible and skilled accountants as per their requirements. The skills and requirements we need in an accountant were considered in this study to progress the work profile. An accountant was to be qualified and shortlisted as per their requirements and duties of the companies related to this corporate accountant job (Allen, et. al., 2018).
References
Allen, A. M., Ramanna, K., & Roychowdhury, S. (2018). Auditor lobbying on accounting standards. Journal of Law, Finance & Accounting, Forthcoming.
Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial accounting theory and analysis: text and cases. John Wiley &Sons.
Smith, M. (2018). Luca Pacioli: The father of accounting. Available at SSRN 2320658.
Warren, C., & Jones, J. (2018). Corporate financial accounting. Cengage Learning.
Balakrishnan, K., Blouin, J. L., & Guay, W. R. (2018). Tax aggressiveness and corporate transparency. The Accounting Review, 94(1), 45-69.
Crowther, D. (2018). A Social Critique of Corporate Reporting: A Semiotic Analysis of Corporate Financial and Environmental Reporting: A Semiotic Analysis of Corporate Financial and Environmental Reporting. Routledge.
Nasr, M. A., & Ntim, C. G. (2018). Corporate governance mechanisms and accounting conservatism: evidence from Egypt. Corporate Governance: The International Journal of Business in Society, 18(3), 386-407.
Ellis, C. (2018). Why ambitious corporate accountants should extend their role beyond finance. Professional Accountant, 2018(32), 24-24.
Okwuosa, I., & Amaeshi, K. (2018). Sustainability reporting and the professional accountant in Nigeria.
Adhariani, D., Siregar, S. V., & Yulius, R. (2019). Borderless with Unequal Opportunity? Experts’ Perspectives on the ASEAN Economic Community and the Impact on Indonesian Accountant Profession. The Qualitative Report, 24(5), 1147-1167.
Pal, N. R. (2019). Corporate Governance-Mapping and Imaging the Swot on Real-Time a Bare Minimum in Assurance to Growth and Sustainability. The Management Accountant Journal, 54(2), 40-45.
Owolabi, S. A. (2019). Quality Accounting Service a Panacea to Effective Corporate Governance. Available at SSRN 3382381.
Wardhana, D. Y. (2018). Good Corporate Governance Practices in Family Business: A Case Study in Indonesia. Petra International Journal of Business Studies, 1(1), 35-44.