Managerial Accounting Analysis of SAS Company Financial Statements

This assignment analyzes the different aspects of financial statements of SAS Company using the PwC Value Framework. The analysis covers different aspects of financial statements and is graded on the basis of good, bad and ugly policy. The report also evaluates whether the financial reports are consistent with the framework and if the various elements reported in the annual reports are appropriately reported or not.

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
Name of the Student:
Name of the University:
Author’s Note

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Executive Summary
The main purpose of the assignment is to analyze the different aspects of financial statements of
SAS company which is engaged in business of d. The different analysis will be graded on the
basis of good, bad and ugly policy. The reporting framework of PwC will be followed for the
purpose of establishing whether the financial reports which are prepared by SAS ltd is consistent
with the framework. In addition to this, the various elements which are reported in the annual
reports will be considered if the same are appropriately reported or not.
Table of Contents

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PwC Value Framework Elements....................................................................................................8
1. Value Framework Element: Strategies and Objectives............................................................8
Report Extracts:...........................................................................................................................8
Reporting Critique.......................................................................................................................8
Extensiveness and Accessibility..................................................................................................9
Comprehensiveness.....................................................................................................................9
Conclusion and Strength..............................................................................................................9
2. Value Framework Element: Business Model.........................................................................10
Report Extracts:.........................................................................................................................10
Reporting Critique.....................................................................................................................10
Extensiveness and Accessibility................................................................................................11
Comprehensiveness...................................................................................................................11
Conclusion and Strength............................................................................................................11
3. Value Framework Element: Governance...............................................................................11
Report Extracts:.........................................................................................................................11
Reporting Critique.....................................................................................................................12
Extensiveness and Accessibility................................................................................................13
Comprehensiveness...................................................................................................................13
Conclusion and Strength............................................................................................................13
4. Value Framework Element: Risk Management.....................................................................14

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Report Extracts:.........................................................................................................................14
Reporting Critique.....................................................................................................................15
Extensiveness and Accessibility................................................................................................15
Comprehensiveness...................................................................................................................15
Conclusion and Strength............................................................................................................16
5. Value Framework Element: Remuneration............................................................................16
Report Extracts:.........................................................................................................................16
Reporting Critique.....................................................................................................................17
Extensiveness and Accessibility................................................................................................18
Comprehensiveness...................................................................................................................18
Conclusion and Strength............................................................................................................19
6. Value Framework Element: Financial Assets........................................................................19
Report Extracts:.........................................................................................................................19
Reporting Critique.....................................................................................................................20
Extensiveness and Accessibility................................................................................................20
Comprehensiveness...................................................................................................................20
Conclusion and Strength............................................................................................................20
7. Value Framework Element: Physical Assets..........................................................................21
Report Extracts:.........................................................................................................................21
Reporting Critique.....................................................................................................................22

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Extensiveness and Accessibility................................................................................................23
Comprehensiveness...................................................................................................................23
Conclusion and Strength............................................................................................................23
8. Value Framework Element: Customers.................................................................................24
Report Extracts:.........................................................................................................................24
Reporting Critique.....................................................................................................................25
Extensiveness and Accessibility................................................................................................25
Comprehensiveness...................................................................................................................25
Conclusion and Strength............................................................................................................25
9. Value Framework Element: People & Culture.......................................................................26
Report Extracts:.........................................................................................................................26
Reporting Critique.....................................................................................................................26
Extensiveness and Accessibility................................................................................................26
Comprehensiveness...................................................................................................................27
Conclusion and Strength............................................................................................................27
10. Value Framework Element: Innovation G&S....................................................................28
Report Extracts:.........................................................................................................................28
Reporting Critique.....................................................................................................................28
Extensiveness and Accessibility................................................................................................28
Comprehensiveness...................................................................................................................28

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Conclusion and Strength............................................................................................................29
11. Value Framework Element: Brands and Intellectual Assets..............................................29
Report Extracts:.........................................................................................................................29
Reporting Critique.....................................................................................................................29
Extensiveness and Accessibility................................................................................................29
Comprehensiveness...................................................................................................................30
Conclusion and Strength............................................................................................................30
12. Value Framework Element: Processes and Supply Chain..................................................30
Report Extracts:.........................................................................................................................30
Reporting Critique.....................................................................................................................31
Extensiveness and Accessibility................................................................................................31
Comprehensiveness...................................................................................................................32
Conclusion and Strength............................................................................................................32
13. Value Framework Element: Operational Performance.......................................................32
Report Extracts:.........................................................................................................................32
Reporting Critique.....................................................................................................................33
Extensiveness and Accessibility................................................................................................33
Comprehensiveness...................................................................................................................34
Conclusion and Strength............................................................................................................34
14. Value Framework Element: Economic Performance.........................................................34

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Report Extracts:.........................................................................................................................34
Reporting Critique.....................................................................................................................35
Extensiveness and Accessibility................................................................................................35
Comprehensiveness...................................................................................................................36
Conclusion and Strength............................................................................................................36
15. Value Framework Element: Social.....................................................................................36
Report Extracts:.........................................................................................................................36
Reporting Critique.....................................................................................................................37
Extensiveness and Accessibility................................................................................................37
Comprehensiveness...................................................................................................................37
Conclusion and Strength............................................................................................................37
16. Value Framework Element: Environmental.......................................................................38
Report Extracts:.........................................................................................................................38
Reporting Critique.....................................................................................................................38
Extensiveness and Accessibility................................................................................................38
Comprehensiveness...................................................................................................................38
Conclusion and Strength............................................................................................................39
17. Value Framework Element: Segmental..............................................................................39
Report Extracts:.........................................................................................................................39
Reporting Critique.....................................................................................................................40

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Extensiveness and Accessibility................................................................................................40
Comprehensiveness...................................................................................................................40
Conclusion and Strength............................................................................................................41
Reference.......................................................................................................................................42

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PwC Value Framework Elements
1. Value Framework Element: Strategies and Objectives
Report Extracts:
(Page 6, Annual Report 2016-17)
The report which is shown above shows the strategy of the business for the future and the
strategy is formulated for the purpose of achieving the long-term goals of the business (Owen
2013). The performance of the company during the year has been promising and due to the new
tax regime which is introduced in Sweden, the company has targeted to achieve SEK 3 billion in
the core activities of the business, establish bases in London and Malaga and capitalize on the
brand value of the company in order to ensure even better performance in future.
Reporting Critique
The reporting critique for Strategies and Objectives as portrayed in the financial statements of
the company are:
 The future goals and set of objectives which the business will be following are clearly
shown in the section

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 In addition to this, the goals are also segregated on the basis of how much it is anticipated
that the business will be achieving such goals that is by 2019 or 2020.
Extensiveness and Accessibility
The strategy which is followed by SAS Ltd are easily made available from the financial
reports as the same is provided ion the initial pages of the report that is om page 6. The strategies
are extensively explained in the President’s letter informing the stakeholders about the
performance of the business. Further on Page 12 of the annual report strategies which makes the
business successful are provided. The strategies also include the future expectations of the
business which is provided in page 6.
Comprehensiveness
The president’s letter which is shown in page 6, the over all performance of the business
and also the future perspective of the business are set out effectively on the basis of Improved
Customers Offerings by the company, Enhancing the Efficiency program, Sustainable Aviation
and building up a strong financial position for the business in the market.
Conclusion and Strength
As per the strategies set by SAS ltd and the effective pursuance of the same resulted in
enhanced efficiency of the business. In addition to this, the strategies focus mainly on medium
term and long terms plans as shown the target time period is 2020 in most cases. Therefore, it
can be said that the quality of strategies and objective of the business is ‘good’
.

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2. Value Framework Element: Business Model
Report Extracts:
(Page 8, Annual Report 2016-17)
Reporting Critique
The report critique of the business model of business model of the company are:
 The extract provides a clear view as to how SAS creates value and what are the activities
which the business engages in for the purpose of creating value.

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Extensiveness and Accessibility
The presentation of the business model of the company is effectively shown in Table
form which is quite easy to understand and the accessibility is also effective as the it is presented
in the initial pages of the annual report specifically page 8 which deals with the value creation
model of the business. In addition to this, the annual report also looks promising to provide
further information of the value creation activities of the business in later pages of the report.
Comprehensiveness
The business model of SAS ltd is based on a broad network for effective departure to,
from and within the country in which the business operates. The company offers a variety of
choices in terms of products which are related to business travels, leisure travel. The business
rewards the customers of the business through the EuroBonus programs. The performance
elements of the business are effectively depicted in the business model and the page also shows
different types of capital which is utilized by the business.
Conclusion and Strength
As per the analysis of the Business model of SAS ltd, it is clearly seen that the
management of the company is crystal clear on the activities which the business needs to engage
in for the purpose of attaining the business goals. The quality of the reporting of business model
is ‘good’.

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3. Value Framework Element: Governance
Report Extracts:
The board is responsible for the overall management of risks and operations of the
business and also ensures that the overall governance of the business is effectively done. The
actions of the board are governed by the Swedish Companies Act, Article of association and
other establish. In order to further enhance the performance and overall governance by the board,
two committee are established which are remuneration committee and audit committee. An
overall structure of the corporate governance of SAS ltd is shown below:
(Page 51, Annual Report 2016-17)
Reporting Critique
The reporting critique for the reporting which is done for the governance of the business are:
 The structure of corporate governance which is followed by the business are effectively
represented in the annual reports of the business in a graph presentation.

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 The responsibilities of the board and various committee in the overall corporate
governance system of the business are shown
 Various details of the rules and regulations which are followed by the business such as
Swedish Companies Act and other codes of conduct are identified appropriately.
Extensiveness and Accessibility
The corporate governance policy of the business is extensively stated in the annual
reports of the company as shown. The corporate governance report clearly shows that the
business follows the code established in the country and also the rules and regulations which are
stated in the article of association of the business. The role of nomination, remuneration and
audit committee is clearly stated and the same is disclosed effectively.
Comprehensiveness
The corporate governance principles which are followed by the business are as per the
requirement of the PwC Framework and covers all appropriate areas. The corporate governance
reports show that the business follows all the necessary code of conduct as prescribed by law.
The reports of different committee which are responsible for the corporate governance of the
business also considered in the decision-making process and such enhances the board’s corporate
governance.
Conclusion and Strength
The corporate governance of SAS ltd is effectively reported in the annual reports of the company
and the integration of the reports and responsibilities of nomination committee, remuneration

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committee and audit committee in the financial statement shows the commitment of the board
towards the effective and ethical management of the company.
The quality of the reporting for the corporate governance of SAS ltd is ‘good’.

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4. Value Framework Element: Risk Management
Report Extracts:

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(Page 42, Annual Report 2016-17)
The risk management policy of SAS is about positioning the company in such a manner
that the business is able to minimize the negative impacts which can be caused by occurrence of
an uncertain event. The risks which are associated with the business are monitored and then
policies with the purpose of minimizing such risks are implemented.
Reporting Critique
The characteristics of reporting for the risk management which drives the PwC framework are:
 The risks which are associated with the business are clearly identified on the basis of
specific areas such as financial, sustainability, legal and political
 The risks are also effectively shown in a chart format on the basis of priority as shown
above in the report extract part.
Extensiveness and Accessibility
The risks which are faced by the management of SAS are effectively shown in with
proper explanation of the same in page 42 of the annual reports of the company. The risk
management policy of the company effectively deals with every risks effectively in different
segment and the same has been appropriately disclosed by the management.
Comprehensiveness
The risk management policy as reported in the annual reports of the business covers all
significant risks which are faced by the business which are market risks, employee risks,
operating risks, sustainability risks, legal risks and financial risks. The first step towards risk

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management is effective recognition of different risks which the business faces. The annual
reports also shows graphical representation and trends which are shown in the annual reports.
Conclusion and Strength
The principle risks which the business faces are effectively outlined in the annual report
along with the different trends which shows growth in prices, jet fuel costs of the business. The
analysis contains both quantitative and qualitative data analysis along with graphical presentation
which is properly reported.
Thus, the quality of reporting on risk management policies of the business is ‘good’.
5. Value Framework Element: Remuneration
Report Extracts:
The remuneration model of the company is passed in the AGM of the company for the
year 2016-17 and the remuneration of the senior executive of the business which is based on
market value and is at the same time competitive and appropriately reflects the authority and
responsibility of the executives. The remuneration of different employees and CEO and
managers are shown in the chart below:

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(Page 73, Annual Report 2016-17)
Reporting Critique
The characteristic of the reporting for remuneration policy of the business is:
 The effective reporting of remuneration communicates the consideration which is
received by the senior management.
 The disclosures show the value of the consideration and impact of the same on the
company as a whole.

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Extensiveness and Accessibility
The remuneration policy of the company is communicated in details in the annual reports
of the company and the same is covered from page 72 covered under salaries, remuneration and
other social security expenses. The remuneration reporting covers a wide part of the report where
the rationale and the breakup of the remuneration is provided effectively. The reporting covers
the remuneration which is provided to
 President and CEO
 Deputy President
 Other Senior Executives
 Others (Employees)
Comprehensiveness
The reporting framework which is adopted by SAS ltd is consistent with the PwC
framework as the reporting discloses quality information. The remuneration section of the annual
report provides information about the break up of the salaries in fixed and variable parts. In
addition to this, for the senior management, the rate of pension is also shown in a chart form. The
section provides table which shows remuneration paid to CEO and senior management and also
to other employees. In addition to this, the table also provides information on remuneration
which the company had paid in the previous year which is very useful for the purpose of
comparison. The employee gets pension and termination benefits as shown in the annual reports
of the business.

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Conclusion and Strength
The remuneration strategy of the company is clearly reported in the annual reports of the
business under note 3 which is covered in page 72 onwards. In addition to this, the breakup of
the amount which is to be paid to different senior management executive are shown. Moreover,
the values are summarized properly in a table and chart form.
The quality of the reporting for remuneration as shown is annual report is ‘good’.
6. Value Framework Element: Financial Assets
Report Extracts:
The financial instruments of the business are recognized in the balance sheet of the
company and at fair value. The financial assets of the company are divided into available for
sales assets, assets which are remeasured in the profit and loss account, loans and account
receivables which is measured at fair value and investments held for maturity. The
characterization depends on the nature and use of the financial assets and the same is determined
at the time of initial recognition.
(Page 87, Annual Report 2016-17)

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Reporting Critique
The characteristic which drive the PwC framework financial assets are
 Identification of the financial assets of SAS ltd
 Determining the value of such Financial assets and judging the financial health of the
business.
Extensiveness and Accessibility
The financial assets which is covered in the notes to account part of the annual report do
have much information and only identifies the financial assets of the business which are cash and
cash equivalents and loan receivables and account receivables. The financial assets of the
business are just recognized in tabular format in note 27 in the annual reports of the company.
Comprehensiveness
The company is engaged in airline business and has numerous operations, therefore it is
essential that the management needs to maintain proper reporting records of the financial asset of
the business which is not shown in details in the annual reports of the company. However, the
financial assets and financial liabilities of previous year is given in the notes to account section
which shows that effective comparison between the two years is possible.
Conclusion and Strength
The reporting about the financial assets of the company is not complying with the requirements
of PwC framework as the detail reporting for the same is not done by SAS ltd. However, the
amount for financial assets for 2016 and 2017 are given without proper classification of the
same.

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The quality of reporting for Financial assets is ‘ugly’.
7. Value Framework Element: Physical Assets
Report Extracts:
The physical assets of the business represent the tangible assets of the business such as
fixed assets of the airlines and also inventories which is used by SAS ltd. Tangible fixed assets
are recognized at cost less accumulated depreciation and any impairment. These assets are
depreciated to their estimated residual values on a straight-line basis over their estimated useful
lives. A table summarising the depreciation period is shown below:
(Page 69, Annual Report 2016-17)
The depreciation is charged following the straight line basis of depreciation.

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The inventories which are attributable to the airline company is shown above.
Expendable spare parts and inventories are carried at the lower of cost or net realizable value.
Cost is calculated using the weighted average cost.
Reporting Critique
The reporting characteristics which drives the PwC element framework for physical assets of the
business are:
 Effective representation of the physical assets of the business which includes, fixed assets
of the business as well as the current assets of the company.
 Book value and depreciation schedule of the assets shown in the financial accounts and
notes to account of the business.
 The application of the asset and its effectiveness is shown in the report.

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Extensiveness and Accessibility
The techniques which are used for the purpose of measuring the physical assets of the
company are explained clearly in the significant accounting policies section of Notes to accounts
of the business (de Villiers, Rinaldi and Unerman 2014). The significant accounting policies start
from page 67 and the same is note 1 of the notes to account section of the annual report.
Comprehensiveness
The reporting about the intangible fixed assets of the business have been extensive as
shown in the annual reports of the business. The reporting on the fixed assets of the business is
done effective and the notes to accounting sections shows detailed classification and
summarization of the fixed assets of the business which effectively shows the accumulated cost
which has already adjusted any addition or sales made on the assets. The depreciation is also
clearly shown and the final figure which is obtained after deducting depreciation is compared
with carrying amount of the asset so as to determine any impairment loss to the business.
Conclusion and Strength
The reporting for the physical assets especially the tangible assets of the business re
shown appropriately which shows an in-depth data presentation and analysis of the same. Thus,
it can be said that the reporting quality of Physical assets is ‘good’ and will meet the expectation
of the stakeholders.

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8. Value Framework Element: Customers
Report Extracts:
The customer satisfaction graph is depicted in the annual report of the company and the
same shows results from different years which facilitates comparisons and the same is shown
below:
(Page 3, Annual Report 2016-17)

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Reporting Critique
The characteristic of the PwC framework element of Customers are:
 Effective presentation of the customer satisfaction index which facilitates comparisons.
 Brand preference and customer loyalty
Extensiveness and Accessibility
The reporting area of the customers and the major countries to which the airlines provide
services are not distinctly shown in the annual reports of the company. As the airline is well
known business firm in the country therefore appropriate customer segment and a list of
important clients should be mentioned in the annual report of the company. The reports only
shows the customers satisfaction chart and the annual growth which the business is able to
achieve in leisure and business flights.
Comprehensiveness
The annual report does not provide a clear idea as to who are important customers of the
business and the reporting is only about the strategies which are applied by the business in
increasing the services of the airlines. The report shows the customer satisfaction level which is
not enough for proper reporting of the same.
Conclusion and Strength
The reporting for customer segments are not appropriately shown in the annual reports of
the company and SAS ltd which is also engaged in foreign travel need to report the customer
segment more appropriately.

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The quality of the reporting for the customers can be regarded as ‘ugly’.
9. Value Framework Element: People & Culture
Report Extracts:
The company recruits employee from different origins for the purpose of different
designation which are cabin crew, pilots and attendants. The management of the company is
committed towards establishing a shared culture environment for the purpose of effective
performance of the business. The management recognizes that a positive culture is essential for
the motivation and right guidance of the employee of the business.
Reporting Critique
The characteristic for reporting as per PwC Framework are shown below:
 The competency of the employees and their commitment towards overall development of
the business.
 The skills of employee are also a determining
Extensiveness and Accessibility
The report does not provide a clear outline of the culture and employee level of the
business. The employee diversity is shown in page 26 of the annual report of the company. The
report shows that the gender diversity of the business that is the number of male and female
employee working in the business (Mock, Rao and Srivastava 2013).

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(Page 26, Annual Report 2016-17)
The percentage of sick leave and employee commitment index is shown above and this
reflects the overall culture of the business which is total commitment for the development of the
business.
Comprehensiveness
The annual report does not provide a clear view of the culture and diversity of the
business, however certain parts of the reporting is appropriate such as the customer commitment
index and also the gender distribution which is shown in percentage and also the sick percentage
and the report also shows that the management aim to develop a shared business culture which
can motivate all the employee and lead to further development.
Conclusion and Strength
The report for the People and Culture part as per the requirement of the PwC Framework
is not complete, the management need to particularly provide a detail report on the culture and
the management effort to establish an appropriate culture in the business.
The quality of the reporting for people and culture aspect can be regarded as ‘bad’.

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10. Value Framework Element: Innovation G&S
Report Extracts:
SAS ltd has in the month of May 2017 has introduced a new and innovative food and
drinking concept which focuses on functionality and locally produced using ingredients. The
business has also introduced lounge in Oslo recently which provides amenities such as gym and
other innovative activities.
Reporting Critique
The characteristic for reporting as per PwC framework for innovative practices are:
 Identification of the innovative approaches applied by the management
 Various changes and positive impacts which are brought about by such an innovation.
Extensiveness and Accessibility
The annual report of the company does not provide any information regarding significant
innovative practices which are undertaken by the business. The innovative activities of the
business are in varieties of food and also other amenities.
Comprehensiveness
The report does not provide any significant information whether the management of SAS
ltd is engaged in any sort of innovation or not and therefore the reporting of the innovation
segment does not meet the criteria of the framework of PwC.

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Conclusion and Strength
SAS ltd which is engaged in airline industry which has a lot of competitors, therefore it is
a must requirement that the company needs innovation in the business to get a competitive
advantage.
Therefore, the reporting quality of Innovation G&S is ‘ugly’ as appropriate information for the
same is not provided.
11. Value Framework Element: Brands and Intellectual Assets
Report Extracts:
The intangible assets of the business comprise of goodwill and capitalized expenses
which are for system development. The business is not engaged in any research and development
activity as stated in the annual reports of the company.
Reporting Critique
The characteristics of reporting for Intellectual Assets and Brands which can be part of
the reporting critique are:
 Utilization of the intangible assets in the business
 Building up of brand image and reputation among the customers.
Extensiveness and Accessibility
The intangible assets section which is provided in page 70 shows that the business is not
engaged in any Research and Development activities. The intangible assets of the business are
shown in the balance sheet of the company and also in the notes to account of the annual reports.

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Another intangible asset which the company possess is IT system of the business and the report
contains detail summary of information in table form of the intangible assets of the company.
Comprehensiveness
The annual report of the company does not specifically include a Intellectual property
and Brand segment but the same is reported in intangible assets section and also in the notes to
account of the annual reports. The relevant information regarding the position of the competitors,
trends showing growth of intellectual assets of the business is not shown in the annual report.
Conclusion and Strength
The annual report of the company does not provide appropriate disclosures when it
comes to intellectual property of the business. The report lacks detailed explanation for the
intellectual property of the business and therefore the quality of the report as prepared by the
management of SAS ltd can be deemed to be ‘ugly’
12. Value Framework Element: Processes and Supply Chain
Report Extracts:
The policy of SAS focuses on people who take travel services frequently to, from and
within Scandinavia. The management targets such group and then work out the priorities of the
business strengthen the competitiveness and meet the challenges in the industry.

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Reporting Critique
The characteristic for reporting of process and supply chain element is shown below:
 Identifying the internal processes and supply chain strategies of the business.
Extensiveness and Accessibility
The supply chain policies and strategies which are related to internal management of the
company are not appropriately shown in the financial statements of SAS ltd. The company needs
to incorporate strategies and practices of supply chain in order to inform the public about the
various processes used by the management.

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Comprehensiveness
The supply chain procedures which are applied by the management of SAS ltd can be
more effectively disclosed in the annual report of the company. The management can include a
lot more information to add more value to the reporting of Supply chain procedures which can be
disclosed to the users of the financial statements.
Conclusion and Strength
The supply chain policies are not clearly outlined in the annual report of the company and
more information could be provided to improve the quality of the reporting framework. The
quality of the reporting for intellectual assets of the business is ‘ugly’ as not much information is
shown in the annual report of the company.
13. Value Framework Element: Operational Performance
Report Extracts:

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(Page 35, Annual Report 2016-17)
(Page 36, Annual Report 2016-17)
Reporting Critique
The reporting critique for operating performance of the business are:
 The quality of services which are provided by the company.
 The cost segregation of the products offered by the business shown in graphical
presentation and also using quantitative data.
 Customer satisfaction
Extensiveness and Accessibility
The operational activities of the business are clearly shown in the annual reports of the
company. The operational performance of the business is shown by cost the breakup shown for

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the services or products which are offered by the business. However, the management of SAS ltd
has not clearly identified the key performance indicators of the business.
Comprehensiveness
The reporting which is done on operational performance of the business are incomplete
as the management can add the key performance indicators of the business. The reporting only
shows the strategic priorities which the business wishes to achieve and not the present
performance indicators are not disclosed.
Conclusion and Strength
The reporting of operational performance of the business are not shown with full
disclosure requirements and in addition to this, more explanation can be included in the
operation performance of the business. The quality of reporting as shown in the annual report is
‘bad’

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14. Value Framework Element: Economic Performance
Report Extracts:
-

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Reporting Critique
The characteristic of the reporting critique for the PwC Framework are shown below:
 Disclosures about the economic performance of the business and communicating the
same with the help of the financial statements of the business
 Financial ratio analysis.
Extensiveness and Accessibility
The economic performance of the business is effectively shown in the financial
statements which are included in the annual reports of the business (Phan, Mascitelli and Barut
2014). The reporting is also easily accessible and the financial statements are shown along with
the notes to accounts which provide clear explanation of the treatments which are shown in the
annual reports.
Comprehensiveness
The economic performance of the business is shown in the financial statements for the
year and the same can also show performance for prior year. The financial statements are
accompanied by various notes which explain the various treatments of the business. The annual
report shows the following:
 Significant segments of financial reporting
 Breakup of the expenses of the business as shown in the profit and loss account.

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Conclusion and Strength
The economic performance of the business complies with the requirements of PwC
framework which is shown in the annual report of the company. The reporting quality of the
financial aspects of the business is ‘good’ as detailed explanation and both qualitative and
quantitative information are provided.
15. Value Framework Element: Social
Report Extracts:
SAS’s social responsibilities include responsibility for employees and for its impact on
the surroundings and communities in which it operates. Redundancy issues are managed through
negotiations in compliance with national laws and practices. In addition, SAS has its own
guidelines that permit the transfer of employees between the national companies or units, which
are negotiated by SAS and the personnel labour union organizations.
Reporting Critique
The reporting critique for the PwC framework element social is
 The activities which are undertaken by the management for the social benefit of the
society, stakeholders.
Extensiveness and Accessibility
The annual reports of the company clearly show the corporate responsibility of the
business (Sierra, Zorio and García‐Benau 2013). The report shows that the management of the

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company is concerned with the safety and well being of the employee and the same is effectively
reported in the annual reports of the business.
Comprehensiveness
The annual report of the company shows the policies which are developed by the
business for overall development of the same is shown in the annual report of the company and
the same is covered in page 48 of the annual report.
Conclusion and Strength
The corporate social responsibility of the company is clearly outline in the annual reports
of the company and the same cover the interest of the employees, investors and other
stakeholders. Therefore, it can be said that the overall quality of reporting for social factors as
per PwC framework is ‘good’.
16. Value Framework Element: Environmental
Report Extracts:
SAS works to reduce greenhouse gas emissions primarily caused by flight operations but
also by ground handling services, and to reduce noise emissions. The environmental impact of
airline operations mainly consists of emissions of carbon dioxide and nitrogen oxides related to
the consumption of fossil-based fuels, as well as noise.
(Page 48, Annual Report 2016/17)
Reporting Critique
The characteristic for environmental performance as per PwC framework is:

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 The activities or the control practices which the company engages in to control
environmental impacts.
Extensiveness and Accessibility
The reporting of SAS ltd effective discloses the activities of the business which is
directed towards controlling the adverse effects which the activities of the business may have on
the environment.
Comprehensiveness
The reporting of the company covers areas such as emission which are related with the
activities of the business. The reporting for environmental consideration is effectively done by
the business. The commitment of the business is to control the noise pollution, emission,
environmental pollution.
Conclusion and Strength
The reporting quality for the environmental consideration as per PwC framework as
shown is ‘good’.

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17. Value Framework Element: Segmental
Report Extracts:
(Page 72, Annual Report 2016-17)

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(Page 95, Annual Report 2016-17)
Reporting Critique
The characteristic of the segmental reporting as per PwC framework is
 Performance of the segments of the business and different business units.
Extensiveness and Accessibility
The accessibility of the segments is easily available and the same is shown on page 95
which is covered in note 39 of the notes to account of the business. The information is effectively
presented in the annual reports of the business.
Comprehensiveness
The reporting for segments are shown appropriately and cover geographical distribution
and unit wise distribution as well.
Conclusion and Strength
The reporting for the different segments as shown in the annual reports are of ‘good’
quality as shown in the annual report of the company.

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Reference
Anon, (2018). [online] Available at: https://www.sasgroup.net/en/sas-annual-report-2016-2017
[Accessed 11 Jun. 2018].
de Villiers, C., Rinaldi, L. and Unerman, J., 2014. Integrated Reporting: Insights, gaps and an
agenda for future research. Accounting, Auditing & Accountability Journal, 27(7), pp.1042-1067.

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Mock, T.J., Rao, S.S. and Srivastava, R.P., 2013. The development of worldwide sustainability
reporting assurance. Australian Accounting Review, 23(4), pp.280-294.
Owen, G., 2013. Integrated reporting: A review of developments and their implications for the
accounting curriculum. Accounting Education, 22(4), pp.340-356.
Phan, D.H.T., Mascitelli, B. and Barut, M., 2014. Perceptions towards international financial
reporting standards (IFRS): The case of Vietnam.
Sierra, L., Zorio, A. and García‐Benau, M.A., 2013. Sustainable development and assurance of
corporate social responsibility reports published by Ibex‐35 companies. Corporate Social
Responsibility and Environmental Management, 20(6), pp.359-370.