Analysis of Channel 7 Group's 2017 Financial Performance Report

This report provides a detailed analysis of Channel 7 Group's 2017 financial performance, focusing on the development of written and oral communication strategies for presenting accounting information. The analysis covers consolidated financial statements, including joint ventures and associates, such as Flagship Property Holdings and Kings Square Pty Limited. It examines non-controlling interests, goodwill adjustments, and foreign currency variances. The report also discusses the company's sustainability policies, risk management structure, and corporate governance principles, referencing the ASX Corporate Governance Principles. Furthermore, it analyzes key financial metrics, including revenue, return on equity, return on invested capital, and return on assets, revealing a decline in operating performance in 2017. The report highlights the company's compliance with regulations and standards, and its approach to human capital management. This information is useful for understanding the company's financial health and strategic direction.

DEVELOPMENT OF WRITTEN AND ORAL
COMMUNICATION STRATEGIES FOR
PRESENTATION OF ACCOUNTING INFORMATION
TO ACCOUNTANTS AND NON-ACCOUNTANTS.

Composition of the group
Joint ventures include
 Flagship Property Holdings Pty Ltd with
47.3% ownership interest,
 Kings Square Pty Limited (with 50%
ownership interest).
 Coates Hire (with 50% ownership
interest)
 Total investment of the company in
particularly associates as well as joint
ventures stands at $1136.5 in 2017.

Composition of the group

Composition of the group
 The group has associates that include
 Beach Energy Limited,
 Energy Power Systems Australia Pty Ltd,
 Impulse Screen Media Pty Ltd,
 iSeekplant Pty Ltd,
 Mo’s Mobiles Pty Limited,
 Premier Capital Developments Pty Limited,
 Revy Investments Pty Limited,
 Revy Investment Trust and
 Seven West Media Limited.

Reason behind preparation of the
consolidated financial statements
 This helps in taking into account actions
of parent business entity and its
subsidiaries in a single assertion.
 Consolidated financial assertions reflects
that as if they are necessarily a single
firm functioning under one roof.

Non-Controlling Interest (Direct as well
as Indirect Non-controlling Interest)
 Non-controlling interests is registered to
be $1.5 million.
 Non-controlling interests are essentially
equity and outcomes of subsidiaries
presented in consolidated assertions of
profit/loss, comprehensive earnings,
consolidated pronouncement of group’s
financial position along with consolidated
assertion for alterations in equity.

Analysis of goodwill of Channel
7
 Group under consideration has
altered accounting policy and
assessed an enhancement in
goodwill to $85 million
 Goodwill reflects excess of
acquisition costs over particularly
fair value of the share of the group
of net identifiable assets of
particularly acquired subsidiaries
or else equity accounted investee
at particularly acquirement date

Foreign subsidiary firm of
Channel 7
 There are different
foreign subsidiaries of
the firm that have
functional currency other
than Australian Dollar.
 Foreign currency
variances for particularly
foreign operations and
that stands at ($48.6
million).

Company’s policy on
sustainability
 Report contains a separate segment on corporate
social responsibility that replicates the fact that
the company is concentrated on sustainability
during long term period
 Company has a risk management structure and
this can help in identification of investment
 Company has policies to manage overall quality
 Specific accreditation to the standard ISO 9001 for
Quality Management System
 Environmental risks relatable to the usage
otherwise storage of different hazardous materials
are recognized

Company’s policy on
sustainability
 Regular tracking of business premises
 Analysis of maintenance of conformation
and
 Emergency processes
 Suggestions from various external
consultants, agencies of government on
different environmental matters

Company’s policy on
sustainability
 Company has a policy of human capital
management counting policy on safety,
training policies and strategies for
retention as well as engagement
 The company sticks to relevant
regulations, standards such as Life
Saving Rules, instituting internal aims
and targets that drive to augment health
along with safety performance

Company’s policy of corporate
governance
 Channel 7 complies to third edition of particularly ASX
Corporate Governance Principles pronounced by Corporate
Governance Council that refers to 8 principles.
 The 8 principles include:
 establishment of solid base for particularly management as
well as oversight,
 structure as well as framework of the board to enhance value
 acting ethically and accountably
 safeguarding overall integrity in the area of corporate
reporting
 delivering timely as well as balances disclosures
 Respecting rights of shareholders’
 Recognizing and handling risk
 Remunerating fairly and responsibly

Discussion on financials
 Revenue of the firm declined to
$2.28 billion in 2017 from 2.84
billion in 2016
 Return on equity has decreased to
0.99% in 2017 in comparison to
7.49% in 2016, Return on invested
capital of the firm has also declined
sharply from the level 6.36% to
around 2% in 2017, Return on
assets of the firm expressed as
percentage is recorded to be 3.25%
in 2016 in comparison to 0.42 %.
These figures reflect undesirable
operating performance of the firm.