Financial Information of Vision West Community Trust

Running head: FINANCIAL INFORMATION OF VISION WEST COMMUNITY TRUST
FINANCIAL INFORMATION OF VISION WEST COMMUNITY TRUST
Name of the Student
Name of the University
Author’s Note:

FINANCIAL INFORMATION OF VISION WEST COMMUNITY TRUST1
Executive Summary
The report takes the example of Vision West Community Trust, a commercial service provider
and a comprehensive analysis through PESTLE approach on the basis of available financial and
non-financial information has been conducted. In the report, we have also conducted an analysis
of different financial ratios with respect to the organization for the last two financial years 2018
& 2019. The report also present how accounting ratios influences the business and the level of
performance and recommendation for improvement has been also mentioned in the report. In
addition, budgeted forecast financial statement for the year ended 2020 to 2024 has been
prepared. The report also discusses about the KPIs of the selected organization and its
measurement.

FINANCIAL INFORMATION OF VISION WEST COMMUNITY TRUST2
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Answer 1......................................................................................................................................3
Answer 2......................................................................................................................................5
Answer 3....................................................................................................................................10
Recommendation...........................................................................................................................17
Conclusion.....................................................................................................................................17
References and Bibliography.........................................................................................................18
Appendix........................................................................................................................................21

FINANCIAL INFORMATION OF VISION WEST COMMUNITY TRUST3
Introduction
Vision West Community Trust is an organization situated in West Auckland which aims
to offer services based on community since 1980s. In this report, we have also conducted a
comprehensive analysis through a political, economic, social, technological, legal and
environmental (PESTLE) approach on the basis of the availability of financial and non-financial
information. The report takes example of Vision West Community Trust, a commercial service
provider, to conduct an analysis of different financial ratios of the organization for the last two
accounting years 2018 & 2019. The report also focuses on presenting how accounting ratios
influences the business and the level of performance and proper suggestion for improvement has
been also mentioned in the report. In addition, budgeted forecast financial statement for the year
ended 2020 to 2024 has been prepared.
Discussion
Answer 1
Vision West Community Trust resources are held in a physical form such as Property,
plant and equipment, cash and cash equivalents whereas the intangible resources of the
organization are Goodwill, trade and other receivables including prepayments.
PESTLE Approach of the Vision West Community Trust:
 Political- The political forces include policy of taxation, laws related to employment,
reforms and political stability that tends to be changed by the effect of government on the
infrastructure of the country. It is important on the other hand to note that the charities
needs should be fulfilled by the government who are not willing to provide goods and
services.
 Economical- These factors include different rates of interest, wages, inflation, exchange
rates and economic growth. In addition, when these factors get combined, it depicts a
great and unavoidable impact on the organization. The country has a mixed economy,
and the organization must be following a simple tax system.
 Social- It is one of the most important factors to consider, such as safety and security,
growth rates of population, and other cultural aspects (Islam & Mamun, 2017). The

FINANCIAL INFORMATION OF VISION WEST COMMUNITY TRUST4
culture or social impact on certain businesses differ` from country to country. The
government should take necessary actions ensuring improvements in the earning of the
people and filling the gap between the rich and the poor ones.
 Technological- Technological factors of the country are diverse in its way, and it has
advanced technological aspects. These factors are helpful to remain competitive in the
market, including Globalization. The organization should be adaptable with the new
changes and consistent with the technologies adopted within it.
 Legal- Legal factors include the laws and regulations which can create an effect on the
operations of the business. These factors influence the areas related to employment,
safety and security, and health (Christodoulou & Cullinane, 2019). The organization
should take into account the effect of the national and international laws where the
organization would start the operations of the business.
 Environmental- The environmental factors include all those factors which create an
impact on the surrounding environment. The factors include awareness of seasonal or
climate change and habitat loss. The analysis of the environmental factors is important
for an organization as it ultimately influences the performance of the organization.
The mission of the ‘Vision West Community Trust’ is to strengthen the hope of
individuals, families and communities together. The aim of the organization is to reduce poverty,
helping vagrants and providing them home, supporting the older ones, and establishing surety of
hope to the young people. They work along with with the people providing them full support
with social, physical, emotional and spiritual needs in order to achieve their organizational goals
of transforming lives and building a healthy community (Vision west community trust, 2020).
 The objective of the organization is to make the people feel that they are connected with
the organization and can get the proper care required during their journey of
transformation.
 They are working on reducing homelessness by increasing the number of emergencies
and providing long-term housing facilities to the needy ones.
 The aim of the organization is to hire volunteers and staff members so that they can be
the best at what they do, and to align the changes of the community with the growing sets
of needs of the organization.

FINANCIAL INFORMATION OF VISION WEST COMMUNITY TRUST5
 To be best in their own way so that Kiwis engage with the issues and create partnership
with them in respect of building Hope Together and look at a better New Zealand.
Answer 2
a) There is a need to have a look into the different financial information of an organization
by the interested stakeholders (Cardwell, Williams & Pyle, 2017). The information
provided by the financial statement is used to evaluate the performance of the company
or an entity and provides other useful information to its users such as its owners,
creditors, investors, customers, management, competitors and government. All these
users rely upon the financial information obtained from the financial statement of the
organization in order to make their decisions, strategies of planning for future, to
determine their success and to know the extent of growth. In addition, it is also required
to assess the failures and take necessary actions to meet up their requirements and
eliminate any risk related to it. There are different types of stakeholders using the
financial information of the organization, such as the internal and external stakeholders.
Internal Stakeholders
 Employees- Financial information of a company help the employees working in the
organization to know about the profitability level of its operation and the organization. It
also helps the employees in the understanding of the business.
 Management- The management of an organization requires to have a look into the
different financial information to get an understanding of the profitability, liquidity
position of the organization each month and to make any decisions related to it.
External Stakeholders
 Competitors- Other organization need financial information to know about their
performance level and measure with their competitors. In order to evaluate their financial
position, they need to access the information on the financial statement of the company.
 Government- A government need all the financial information to determine whether that
particular organization is paying the tax amount in a proper way or not. In addition, they
also make sure that the organization is obeying the relevant policies and order while
operating its performance.