Premier Investments: Accounting & Financial Management Report Analysis

This report provides a comprehensive analysis of Premier Investments' accounting and financial management practices, focusing on sustainability reporting and environmental performance. The report examines Premier Investments' adherence to GRI guidelines, comparing its environmental practices with those of Myer. It also includes an analysis of the company's costs, break-even analysis for potential new store openings, and the development of a balanced scorecard to evaluate the company's success. The report delves into various aspects of Premier Investments' operations, including stakeholder engagement, ethical sourcing, and the benefits of GRI implementation. Furthermore, it discusses both fixed and variable costs, the relevance of break-even analysis for business expansion, and the importance of considering external factors. The report concludes by highlighting the benefits of GRI guidelines for organizational performance and the importance of incorporating disclosures to meet stakeholder needs.

Running head: ACCOUNTING AND FINANCIAL MANAGEMENT
Accounting & Financial Management
Name of the University
Name of the student
Authors note

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Executive summary:
Report discusses about the sustainability reporting of public listed company of Australia that is
Premier investments. Disclosures of GRI that are most relevant to stakeholders of organization
are discussed along with the environmental practices comparison for premiers with that of Myer.
Ascertainment of several facts has been done by analysis for annual report of organizations.
Widespread compliance with GRI guidelines have been evaluated and environmental
performances of both the organization have been compared.

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Table of Contents
Part A:..............................................................................................................................................3
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................3
Answer to question1:.......................................................................................................................3
Answer to question2:.......................................................................................................................6
Answer to question3:.......................................................................................................................8
Answer to question3:.......................................................................................................................9
Part B:............................................................................................................................................10
Requirement 1:...............................................................................................................................10
Requirement 2:...............................................................................................................................10
Requirement 3:...............................................................................................................................10
Break even analysis-......................................................................................................................10
Requirement 4:...............................................................................................................................11
Developing balanced score for evaluating success of Premier investment:..................................11
References list:...............................................................................................................................14

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Part A:
Introduction:
The questions deals with the explanation and recognition of social and environmental
concerns relating to premier investments operational activities. Premier investment is an
organization operating in retail sector by providing garments to customers in countries where
they carry out their operations. Environmental and social strategies are constructed by every
organizations depending upon their specific concerns (Otley & Emmanuel, 2013).
Discussion:
Answer to question1:
It has been recognized by premier investments that the eco system and environmental
systems of country is looks at the environment in which they are carrying out their operations.
Manufacturing process of organization has resulted in facing some of the environmental issues
such as incineration of the wastes and their proper utilization. Acquiring knowledge about tastes
and preferences of customers and changing trends are some of the social trends that are
recognized by premier investments. In order to understand the ongoing changes in the market, it
is required by organization to conduct the time to time analysis of market scenario. Mitigation of
various social concerns of organization requires undertaking and development of several
strategies (Brandau et al., 2017).
Looking after the community associated with organization are the three objectives that is
related with sustainability commitments of premier investments. Such sustainability is related to
organization’s activities of organization. Operational functions of business involve variety of
individuals and they are involved in business operating activities and they include stakeholders

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such as employees, customers. For keeping stakeholders of organization satisfied and happy so
that they have long-term relations, Premier investment is required to undertake effective
measures. Understanding the needs and looking after the communities associated with business
is another sustainability objective related to Premier Investment. For acquiring knowledge and
gaining experience about the needs and desires for communities intends organization to look
after the communities. This would help in providing assistance for the development of
community and organizations and influencing the manufacturing of products as sought by
communities. Understanding the issues that can be prevented by looking the environmental are is
the third objective of organization so that related matters can be rectified by undertaking steps or
measures for effective and efficient performance (Walters & Ramiah, 2017).
The sourcing framework has been development by looking at three objectives concerning
ethical sources of Premier investment. Principles and policies of organization form the basis of
construction of models relating to ethics. Promoting and framing the assurance among
environment and employees is the next ethical objective of organization for maintaining the
process of ethics (Taipaleenmäki & Ikäheimo, 2013). In relation to ethics, ethical procurement of
raw materials is another third objective so that raw materials used are of good quality and they
are ethical for providing satisfaction to customers.
The progress of organization can be measured by adoption of two measures that would
lead to accomplishing of objectives is depicted in the table given below:
Dimensions Objective Performance Measures
Sustainability of 1. Community 1. Relationship with
communities are maintained by

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business complying with law
2. Establishment and seeking
for long-term relationship with
Simggle community
2. People 1. Supervising and managing
the environment of workplace
by keeping personnel and
measuring security of
workplace
2. Retention of potential and
existing customers and
employees by taking initiatives
3.Environment 1. Waste generated during the
manufacturing process should
be recycled and looked after
(Brigham & Ehrhardt, 2013)
2. Ensuring that energy is
utilized efficiently
Ethical Sourcing 1. Ethical procurement
of raw material
1. Establishment of good
relationship with suppliers
2. Raw materials should be
checked before procurement
2. Using procedures 1. Conducting survey on

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and policies for
construction of
sourcing models
customers and stakeholders for
assessing the model
effectiveness
2. Model comparison and
assessment with the
international ethical standard
3. Assurance
establishment and
promotion
1. Undertaking changes by
reviewing analysis and
performing frequent analysis
(premierinvestments.com.au,
2017).
2. Comparing set of assurance
by matching it with competitors
Answer to question2:
A set of principles has been framed by global reporting initiative for preparation of
sustainability report. The guidelines of GRI has been divided into sections comprising of
stakeholder engagement, organizational profile, identifying material aspect, strategy analysis,
ethics, stakeholder engagement, governance and reporting profile. Operations of Premier
investments can be carried out by complying with such sections and strategy of organization can
be planned by considering the most relevant disclosures of GRI and they are as follows:
Governance:

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A section of corporate governance has been clear depicted in premier investments annual
report. Report has detailed classification of remuneration and policies along with the elaborated
information that has helped in gaining transparency.
Strategy and analysis:
Planning the investments and execution of strategy can be done by Premier investments
according to the principles that are outlined in the standard. An insight of organization has been
described by GPI as per their strategy analysis that would make easy for shareholders to
understand. Some of the sustainable approach adopted by Premier investments is mentioned as
their obligation towards environmental practices, corporate environment and taking steps for
protecting earth.
Transport:
Another GRI principle discloses the impact of using transport in business and it discusses
about the environmental impact of using transportation. It can be seen from annual report of
organization that takes into environmental considerations while adopting transportation method
and proper disclosure of transport materials.
Stakeholder engagement:
Activities undertaken by organization is clearly depicted in the annual report and
involving stakeholders so that they are able to get clear scenario of business. All the required
information sought by stakeholders is clearly disclosed in the particular section that helps in
creating transparency between Premier investment and stakeholders.

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Answer to question3:
Comparing the quality and environmental performance information of Premier investment
with Myer practices:
On some aspects, the practices of both organizations that are Myer and Premier are
similar while they differ in some other areas. After analysing annual report of both the
organizations, it can be seen that they take environmental into considerations while undertaking
operational activities of business. For protecting environment such as saving trees and plants,
they have adopted the practice of recycling the waste that will help in addressing environmental
pollution. Customer satisfaction is another area by providing quality products and ensuring
adopted of safety and security in their production activities (Otley & Emmanuel, 2013).
Nonetheless, there exists some difference in activities of both the organization.
Disparity exists in terms of employment of workers as Premier investment focuses on
efficiency for which they appoint skilful and talented workers. On other hand, Myer take
appropriate measures for promotion gender equality and reducing the biasness within
organization for which they hire female employees. When addressing environmental concern,
Myer intends to reduce green house effect and carbon emission and premier focuses on energy
wastage reductions and their efficient utilization. Premier investment serves environment by
following product stewardship programs and Myer make use for recycling method. All the steps
taken by different organizations help in addressing environmental pollution. Therefore, it can be
said that both Myer and Premier are engaged directly and indirectly in addressing environmental
concerns.

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Answer to question3:
Benefits of GRI:
Various aspects are involved in measuring organization performance as per GRI
guidelines and this involves economic, environmental and social sustainability. Implementing the
guidelines of GRI will help in improving the profile of organization (Fuente et al., 2017).
Several recommendation and guidelines disclosed in standard helps companies in
adopting the proper strategies that would address different stakeholders need. Adoption of
guidelines by Premier investment will help in serving their stakeholders and investors
requirement. Understanding of strategy and analysis of organization will be eased to investors of
Premier, if they adopt the same that will facilitate decision making and investment within
company. Purchasing of shares of company will be facilitated if premier investments adopt the
recommended guidelines (d'Haens & Aerts, 2017). The upcoming investment opportunities and
possible risks of such investments will be well known to investors and they can exercise cautions
in making investment decisions. Performance and competitiveness of organization can be judged
by incorporation of governance of Premier investment as per the guidelines of GRI.
Conclusion:
From the above analysis, it is concluded that there are several guidelines and disclosures
made by GRI for facilitating the organizational performance. Premier investments have
incorporated several disclosures that assist them in addressing the stakeholders’ needs such as
environment, communities, investors and customers. Furthermore, the comparative analysis
depicts that there are few differences in practice of Myer and premier investments.

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Part B:
Requirement 1:
The ongoing operation of Smiggle and Peter Alexander involves some of the major costs
that are incurred on wide range of activities. This involves depreciation and amortization cost,
costs incurred on employees, insurance, distribution and warehouse, research and development
costs. Some other miscellaneous costs include income tax, consultation fees, salaries and wages,
charges of banks, freights, marketing costs, leasing properties and rental payment and others.
Requirement 2:
The costs discussed above involve both fixed and variable costs and their behaviors can
be discussed below:
Fixed costs are the cost that is incurred irrespective of level of output produced by
companies. In case of Smiggle and peter, the fixed cost comprise of interest rate, rent charged on
rental properties, lease expense, depreciation and amortization. Organization has to incur all
these expenses irrespective of their performance and production. On other hand, variable cost
varies as per the output level produced by organization. Such costs involve wages paid to
labours, freight expenses, payment for materials and income tax payment and they are directly
influence by level of sales (Lasher, 2013).
Requirement 3:
Break even analysis-
The point at which the cost incurred by organization is equal to revenue generated from
selling of products is known as break even analysis. Break even analysis would be considered as

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appropriate option by Smiggle and Peter Alexander for opening store in new territories. This is
done after conducting analysis of their operational activities and costs evaluation. Break even
analysis is regarded as reliable screening tool for premier investments for opening new store in
other territories. It is essential for business to make the forecast of their sales before starting any
new business that would be assisted by performing such analysis. It is possible to make forecast
of future profits generated by stores at different levels and it would facilitate development of
product mix at future store. Avoidable and controllable cost can be determined using this tool
and there can be improvement in passive selling by stores (Taipaleenmäki & Ikäheimo, 2013).
However, there are some shortcomings of using break even analysis that should be
considered before staring new business. Some of external factors influencing the business should
be considered such as market environment, employment of capital and government policies.
Appropriate and exact estimation of real market scenario cannot be given by break even analysis.
It is required by premier investment to identify and evaluate the mixed cost that is often
neglected by this analysis tool.
Requirement 4:
Developing balanced score for evaluating success of Premier investment:
The business model of organization should be capable of measuring business
performance by conducting analysis of internal business procedures, financial performance and
satisfaction of customers. Balanced score card is a management tool for measuring strategically
performance, monitoring and measuring progress towards strategic targets (Brandau et al., 2017).
Balanced score card can be used as management tool by Smiggle and Peter Alexander for
opening new stores in different territories. Measuring scorecard objectives helps in translating