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Accounting and Financial Reporting of Blackmores Plc Australia

   

Added on  2020-02-24

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Finance
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Financial Reporting 1Accounting and Financial Reporting: Blackmores Plc Australia
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Financial Reporting 2Executive Summary of FindingsBlackmores is leader in the field of healthcare products and supplements. Its focus is maintaininghealth with the use of natural products since 1930. Blackmores is having command in vitamins,minerals, herbs and various nutrients based supplements with over 250 varieties. In 2016Blackmores was awarded with the ‘Most Trusted Brand’. It established its business in more than17 countries with more than 1000 employees. The vision is to produce health giving propertybased on natural herbs and minerals. There are some mandatory requirements for proper working of an organization. Accounting ofthe various transactions helps to disclose financial statements in a very clear form which is veryimportant for the companies. It is crucial in terms of disclosure of information and comparison ofthe performance in industry. It also helps to review and understand the trend of the companywhether it is improving from past performance or not. This results to implementation decisions. Stakeholders also depend on the financial information of the companies as it is analyzed as theparameter for the current condition in terms of finance, market share and performance. Theinternal stakeholders use this information for current performance and to plan future strategy.Whereas external stakeholders are interested in profits and impact of decisions on financialcondition of the company as profits and sales figures are the key indicators for performance. Themain statements viewed by stakeholders are balance sheet, income and cash flow statements. The profit in year 2012 was 13,565 thousand Australian dollars which increased to 10.7%, 53%,115% in respective years from 2012 to 2015. Afterwards the profits and sales decreased byaround 40% in 2016. It can be stated that there is a huge difference between the asset of 2016and 2015 as AUS$2,94,624 and AUS$1,87,844 which can influence the decisions ofstakeholders. Current liabilities of company is measured as AUS$2,53,430 in year 2016 This
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Financial Reporting 3happened due to change in preferences and an online seller from china backed off from sellingBlackmores products. Cash and cash equivalents has also been generate at lower rate asAUS$2191 and increased up to the AUS$37653. Sales is also decreased in comparison to 2015from AU$ 341433000 to AU$322129000 as on 31 December 2016. The business operating cash flows are $83.7 million which is about 18% growth from past year2015. The cash conversion ratio of 81% shows that it focused on success in operational strategy.The gearing ratio as a group remained low at 9.1% with comparison to 5.1% in 2015. After theacquisition of Global therapeutics still company is having net interest cover ratio at 80.2 timeswhich is far more than 21.1 times in 2015. Equity of the company also increased to $181 from$133 million at the end of the year 2016. Around $48 million growth due to group Net profitafter tax, retained earnings and joint venture profits. EPS of the company is also increased around $6 than past year so ROA and EPS shows thatBlackmores on right track in terms of profitability and it is the takeovers and new ventures thatare responsible for the fluctuations in the financial statements. The other ratio such as liquidityratio shows good position of the company to pay for the debts and fulfilling the working capitalrequirements. There is also requirement to maintain safety and standards of the products as highregulation is observed on the manufacturers and suppliers of health related products. It is also asensitive product which can lead to serious damage to the company financial position in case ofnegative news or bad consequences of the products supplied.
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Financial Reporting 4IntroductionThis report is presented to demonstrate the reliability and efficiency of accounting and financialreporting over the company. As ASX listed company, Blackmore’s financial statements areevaluated with reference to financial reporting. Information is presented in reliable andtransparent manner to represent the actual financial performance of company. It also includes thefinancial ratios analysis to support the efficiency of financial statement which creates a clearpicture for the performance of business.
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Financial Reporting 5Slide 1: Accounting and Financial Reporting Accounting and Financial ReportingSlide 2: Table of Content
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Financial Reporting 6Slide 3: Presentation IntroductionSlide 4: Company Background: Blackmores
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