MBS539 – Accounting for Managers

Running head: ACCOUNTING FOR MANAGERS
Accounting for Managers
Name of the Student
Name of the University
Author’s Note

1ACCOUNTING FOR MANAGERS
Table of Contents
I. The Business.................................................................................................................................2
II. Industry and Financial Statement Characteristics.......................................................................2
Industry........................................................................................................................................2
Characteristics of Financial Statements.......................................................................................3
III. Major Elements of Balance Sheet..............................................................................................3
IV. Accounts with particular Interest...............................................................................................4
References........................................................................................................................................6

2ACCOUNTING FOR MANAGERS
I. The Business
Qantas Airways (Qantas) is the flag carrier of Australia and it is regarded as the largest
airline in the country in terms of size of fleet, international flights and international destinations.
In addition, Qantas is also considered as the third oldest airlines of the world after KLM airlines
and Avianca airlines (qantas.com, 2018). Qantas commenced their business operation in the year
of 1921 and the company is headquartered at Mascot, Sydney, Australia. The fleet size of Qantas
is 127 and it covers a total of 85 destinations. The company has some major subsidiaries; they
are QantasLink, Jetstar Airways, Jetconnect, Qantas Holidays, Qantas Freight and others. In the
recent years, the company has been developing their business strategies by considering four
major forces that are likely to have biggest impact on their business; they are geopolitical shift
along with the rise of Asia, big data as well as digitalization, shifting the customers along with
the preferences of workforce and climate change along with resource constraints (qantas.com,
2018).
II. Industry and Financial Statement Characteristics
Industry
In this context, it needs to be mentioned that Qantas operates in the aviation industry of
Australia. The aviation or airline industry is a major contributor in the development of the
economic condition of Australia. In the year 2017, the aviation industry of Australia fetched
annual revenue of $43.54 billion and it contributed $15.91 million to the Australian economy in
the same year (australianindustrystandards.org.au, 2018). The aviation industry of Australia
provides employment to more than 88,000 people in five major subsectors; they are international
commercial aviation, domestic commercial aviation, general aviation, air-freight transport and
aviation support infrastructure. The presence of some major competitors can be seen like Qantas
and Virgin Australia; and the performance of these major players affects the Australian aviation
industry (aph.gov.au, 2018). For this reason, the presence of major price completion can be seen
in this industry. In the year 2017, the aviation industry of Australia was able to fetch a profit of
$4.12 billion. The aviation industry of Australia consists of almost 1865 businesses. After