Ask a question from expert

Ask now

Financial Reporting Practices | Qantas Airways

26 Pages4981 Words367 Views
   

Added on  2019-11-25

Financial Reporting Practices | Qantas Airways

   Added on 2019-11-25

BookmarkShareRelated Documents
Running head: AUDITING AuditingName of the Student: Name of the University: Author’s Note:
Financial Reporting Practices | Qantas Airways_1
1AUDITINGTable of ContentsIntroduction................................................................................................................................3Part 1: Understanding the nature of the Entity...........................................................................4(a)Operations of the business...........................................................................................4(b)Investment and investment activities...........................................................................4(c)Financing and financial activities................................................................................4(d)Financial Reporting Practices......................................................................................5Part 2: Understanding the Industry............................................................................................5(a)Industrial Size..............................................................................................................5(b)Industry Growth...........................................................................................................5(c)Industrial Supply Chain...............................................................................................6(d)Key players in the market............................................................................................6(e)Market shares of the industry players..........................................................................7(f)Critical success factors................................................................................................8(g)Major Threats..............................................................................................................9Part 3: Understanding the legal environment.............................................................................9Part 4: Understanding the external environmental factors.........................................................9(a)PESTLE Analysis......................................................................................................10(b)Porter Five Forces......................................................................................................11(c)SWOT Analysis.........................................................................................................12Part 5 – Understand objectives, strategies and Assessing Business Risks...............................13(a)Industry developments:.............................................................................................13
Financial Reporting Practices | Qantas Airways_2
2AUDITING(b)New Products and Services.......................................................................................13(c)Expansion of the Business.........................................................................................14(d)New Accounting Requirement..................................................................................14(e)Regulatory Requirement............................................................................................14(f)Prospects for financing..............................................................................................14(g)Use of IT....................................................................................................................14(h)The impact of incorporating a strategy......................................................................14Part 6 – Performing Analytical Procedures to understand Entity’s Performance....................15Part 7 – Understand management and Governance.................................................................19(a)Enforcement and communication of the integrity and the ethical values.................19(b)Commitment for competence....................................................................................20(c)Participation by the one who are charged with governance......................................20(d)Philosophy of the management and the style of operation........................................20(e)Organizational Structure............................................................................................20(f)Allotment of Authority..............................................................................................20(g)HR practices and policies..........................................................................................21Conclusion................................................................................................................................22Reference List..........................................................................................................................23
Financial Reporting Practices | Qantas Airways_3
3AUDITINGIntroduction This paper has been constructed in order to focus on the numerous aspects of theanalysis of the business risk that is associated with Qantas Airways Limited. There have beenfew crucial components in regards to this research paper that have been observed inaccordance to the utilisation of numerous kinds of the entities that have been observed whilegaining knowledge about the Industry Regulatory and External Factors. There are certainother components in regards to this report that have been revealed the governance of themanagement structure and the characteristic of the entity (Chen and Liu 2017). The paper hasmoreover explained the various kinds if the components for the risks that are related to thebusiness and even the objectives and the strategies utilised by the organizations. The different kinds of ways of gaining knowledge about the originations have beenundertaken with the utilisation of the operations of the business, investment operations andthe practices of the financial reports. The next segment of the paper has explained about theindustrial development or growth, chain of the industry supply, the problems related ti thesignificant factors of success and the share of market of the key industrial companies. Thethird segment of the paper has additionally observed to explain on the understanding of thelegal atmosphere. The various kinds of the other components of the paper that have beenobserved with the knowledge about the factors related to the extrinsic factors, structure of thecorporate governance and the management associated with the organizations (Xu and Cui2017). The primary focus of this paper has been additionally observed to be given on thecompletion of the analytical process for gaining knowledge about the entity. The last sectionof the paper has revealed a crucial amount of the concentration, which has been noticed to beassociated to the knowledge of the structure of the company, operating and the philosophicalstyle associated to it.
Financial Reporting Practices | Qantas Airways_4
4AUDITINGPart 1: Understanding the nature of the Entity (a)Operations of the business Qantas Airways Limited has been recognised to be one of the initiators of providing elite,luxurious and economical airline experience to the Australian residents. Qantas Airways hasbeen seen to be additionally delivering several kinds of airline and courier services as well asnew and innovative airline facilities. Qantas has even undertaken programs like airhostessprograms and training and developments of the new aspiring candidates so that newcandidates can have the opportunity to join the airline industry. (b)Investment and investment activities The key form of investment operations for the company has additionally been based onthe different kinds of factors that are seen in the form of undertaking investments in thecommunal programs. This has been observed to be seen to assist training and awarenessprograms for the society so that they can be aware of the situations and can undertake varioussteps in order to safeguard themselves. The organization has even undertaken steps likecreating airhostess and ground staff training programs with the help of which new candidatescan learn various activities and undertake plans that would be influential for making themapply for jobs in the aviation industry as well (Powell 2016). In that manner the company canbring in new candidates in the aviation industry by training these individuals effectively andin that manner helping them establish themselves in the economy. (c)Financing and financial activities The key form of cash flows from the financial operations has been observed to be thepayment of dividends to their shareholders, payments of borrowing, capital return paymentand various other financial activities. The amount of dividend paid has been seen to be $(1825) and $ (1218) for the year 2016 and 2015 (Qantas.com.au. 2017). Therefore, it can be
Financial Reporting Practices | Qantas Airways_5
5AUDITINGsaid that Qantas has raised their level of investing operations from the previous year and thishas improved the position of the organization in the economy. (d)Financial Reporting Practices The construction of the financial report has been based with respect to the AustralianAccounting Standards Boards (AASB). The company has even tried to comply with the otherstandards like the International Financial Reporting Standards (IFRS) that has beenconstructed by the International Accounting Standards Board (IASB) (Danaher, Sajtos andDanaher 2016). The Corporations Act of 2001 has even been used by the organization for thepreparation of the financial statements. Part 2: Understanding the Industry (a)Industrial Size The private aviation industry in Australia is regulated by the government and this has ledto the development of the industry. There is a large segment of the Australian population whoare associated with the aviation industry and this has prompted the entry of various newaviation companies in the market and in the same manner a significant rise in the number ofpassengers and a significant rise in the frequency of travels by the passengers (Chang et al.2014). (b)Industry Growth The key growth of the aviation industry has been the development of new and innovativefeatures and facilities that are provided by the various organizations functioning in theaviation industry. The next suited development of the industry has been looked upon as thevariety of service providers who offer service in order to gain profit and to provide effective
Financial Reporting Practices | Qantas Airways_6

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
AUDITING 22 AUDITING Auditing Name of Student: Name of University: Part 1 - Understanding the Industry
|23
|4079
|88

25 Audit Audit Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment
|24
|5059
|373

Taxation Law of Australia
|18
|4176
|63

Assignment (doc) | Taxation Law
|20
|4272
|42

Vacuum Deficits in Internal Auditing
|29
|5027
|87

Taxation Law
|17
|4200
|262