Emirates Company Financial Reporting Analysis - AASB & Implications

This report provides a detailed analysis of Emirates Company's financial reporting practices, utilizing the company as a case study to address various issues related to financial reporting standards and practices. It examines the importance of developing AASB (Australian Accounting Standards Board) in business, identifies and evaluates data from Emirates' annual reports, explores the motivations behind managerial disclosures, and considers the perspectives of securities market participants and investors. The report also comments on the integration of social accountability within general-purpose financial reports, highlighting Emirates' initiatives in environmental sustainability, community welfare, and financial literacy. Ultimately, the analysis aims to assess the company's adherence to accounting standards and its impact on stakeholder decision-making, concluding with recommendations for further evaluation and development in AASB to ensure reliable financial reporting across companies listed on the Australian Stock Exchange. Desklib provides a wealth of similar solved assignments and past papers.

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FINANCIAL REPORTING
Group Names
Financial Reporting
Course Studied
Unit Title
Unit Code
Professor’s Name
Institutional Affiliation
Department
Date

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Financial Reporting
Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................2
Question 1...................................................................................................................................................3
Question 2...................................................................................................................................................4
Question 3...................................................................................................................................................4
Question four..............................................................................................................................................6
Question Five...............................................................................................................................................6
Recommendation and conclusion...............................................................................................................7
References...................................................................................................................................................8
Appendix.....................................................................................................................................................9
Emirates Image........................................................................................................................................9

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Executive Summary
Emirates is one of the largest companies in the world. The company is specialized in
airline transport and is ranked within the top ten companies globally. The company operates
within six continents. Estimations show that the company makes more than three hundred flights
from Dubai International Airport to more than one hundred and fifty destinations located in
approximately 74 countries across the world. The Emirates Company has always been viewed as
the largest airline firm in the Middle East. The company was established in 1985 and since then
developed spontaneously. The company is on record for winning diversity of awards in the
airline industry. This essay makes use of Emirates Company as a case study to address various
issues regarding financial reporting.
Introduction
Emirates Company is the best company to be evaluated in addressing the concerned
issues since the firm is substantial with adequate information regarding financial reporting
aspects. The company is listed on the Australia Stock Exchange and therefore its application
would be relevant internationally. Some of the key issues discussed in this report include but not
limited to the importance of developing AASB in business practices, identification and
evaluation of the data provided on the end year reports of Emirates Company, the motive of the
managers to disclose some of the data in the annual report, personalities regarding securities
market and investors and lastly comments regarding the statement integrating social
accountability and the formulation of the general purpose financial reports.

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Question 1
Based on the analysis of the Emirates Annual, this report can’t hesitate to mention the
fact that AASB Conceptual Framework hits the reality by displaying social responsibility as one
of the major objectives of financial reporting. Most companies report their business operations
with the aim of illustrating corporate social responsibility. Emirates makes use of the annual
reporting program to express its relation to the public. The company has released reports in 2016
and 2017 to display various initiatives undertaken to enhance environmental sustainability
(Cdn.ek.aero. 2018). The company in this case takes advantage of the 2017 being the year of
sustainable tourism for development among the united nations. 2016-2017 is was a year of
several economic, political and social operations in the United Nations which drove fundamental
issues in the client’s travel industry. Therefore, the company had to build its reputation through
displaying its concern on corporate social responsibility. The company claims to be more
concerned with investing in the people as a strategic plan of improving the company resilience,
and resources efficiency. The company claims to have been at pace in replacing various vehicles
in Dubai and various regions across the world with a primary aim of minimizing the emission of
carbon iv oxide in the air. Countries in which electronic ground equipment have been deployed
in airport operations include but not limited to Netherlands, UK, US and Singapore. Emirates
states that its social accountability is not limited to supporting the community but extends to the
sustainable management of the business operations. As obtained from the annual report, Emirates
has played a fundamental role in enhancing the welfare of the people with disabilities in the
community. Additionally, the company is focused of enhancing financial literacy in the
communities served. Emirates has offered employment opportunities to more than 103, 363 staff

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across more than 160 countries across the globe (ke.linkedin.com. 2018). The company
strengthen the community and develops the quality of life through intensive investment in the
community. Therefore, the presence of such information in the annual report of emirates
company proves the reality of the AASB Framework statement (Corporate Accountability is one
of the objectives of annual reporting).
Question 2
Establishment and development of AASBs across the business operations in Australia is
fundamental. The AASBs requires all the companies to provide the general purpose financial
statements indicating the financial position of the firm, cash flows and the performance of the
firm. The importance of providing this information is to enable the owners of the business,
creditors, regulators, investors and other relevant parties to make decisions regarding the
allocation of the scares resources within the company. Therefore, development of the AASBs is
relevant to ensure all the companies adhere to the accounting standards. Such an ideology is
significant to enhance proper comparison of organizations in the market area. Therefore,
adhering to the accounting standards helps the investors and other stakeholders both internally
and in the external environment to make eloquent decisions regarding the business. Financial
statements display the social responsibility of the company. In such a case, different companies
may fail to record facts and get biased to emphasize on corporate social responsibility. Therefore,
there is a need to develop AASBs that will track the company operations such to ensure the
information recorded in the annual report is reliable.
Question 3
The type of information contained on the annual reports include financial statements. The
four major financial reporting include cash flows, balance sheet, income statement, and the

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statement showing changes in equity (Cdn.ek.aero. 2018). Usually, a balance sheet indicates the
financial position of a business. A balance sheet is used by the business owners and investors to
tell the ability of a farm to pay off all the liabilities without intervening the personal income of
the business owners, managers or investors. Following the information provided on the annual
report of Emirate Company, the farm is worthwhile (capable of paying all the debts). From the
balance sheet indicated on the income statement, an accounting equation is derived whereby
Equity is provided by the summation of liabilities and total assets. Mathematically, this
expression is presented by owners’ equity = total assets + total liabilities.
A part from the balance sheet, the annual report contains a profit and loss account which
is made up of the expenditure side and the revenue side. The income statement indicates the
profitability of the business. Following the information on the annual report, Emirates company
is profitable shown by a positive net revenue (Statista.com. 2018). The income statement also
expresses the growth of a business. Emirates company is good for investors having expressed an
increase in the total revenue when the report is compared to that of the previous year.
The company also contain a cash flow statement which indicates the cash outflows and
the cash outflows within the firm. The cash flows indicate the liquidity of the business. In this
case, the cash flow statement tells weather the business is capable of dealing with the daily
operations or not. Emirates Company is capable of meeting the daily operations due to a higher
rate of inflow compared to the outflow rate in the company.
The company indicates an increase in the equity following the statement indicating
changes in the owners’ equity. Therefore, the business in this case encourages more investors as
the company expresses accountability to the capital invested by the owners. The investment in
this case is promising and reliable. Finally, the managers of the business dint hesitate mentioning

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corporate social responsibility initiatives of the business. The ideology has boosted the reputation
of the company.
Question four
There exists diversity of motives that triggers managers to disclose the kind of the
information in the annual reports. Firstly, most managers are after the reputation of the company.
In this case, the managers are aware that a good picture to the company is popularity and success
of individual leadership to the entire society. Therefore, the managers are after popularity
through expressing the social responsibility perspectives of the company. Secondly, most
managers are paid a commission upon improvement on the total revenue and the profitability of
the firm. Therefore, most managers are motivated to indicate the profitability and growth of the
company.
Question Five
All the information provided on the annual report attracts a good reaction from the
investors. Most investors look after an organization that exercises high level of corporate social
responsibility. In this report, Emirates has brought forth its initiatives regarding environmental
conservation and concerns regarding the disabled people. Investors are also attracted by
profitable organizations just as expressed within the income statement of the Emirates Company.
Thirdly, investors are pleased with an organization which is going concern. An organization is
only able to operate continuously if its capable of meeting all the daily activities just as
expressed by the information regarding the cash flows of the Emirates Company. Owners’ equity
is very significant. Just as obtained from the balance sheet and the statement of changes in
equity, investors are likely to be pleased by the organization since the organization is promising
to provide higher returns on the invested capital.

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Recommendation and conclusion
This report has been faced with a challenge regarding the time limit and word count.
Therefore, I would recommend further evaluation of the contents within the report to come up
with a detailed and more extensive evaluation of the financial reporting of Emirates Company.
Additionally, this research is a sample evaluation and backbone of further studies of most of the
Companies Listed on the Australian Stock Exchange. Furthermore, this report suggests for
development in the AASBs to ensure all the companies across the country adhere to the
accounting standards for better decision making on the allocation of the scares resources. The
information in this report is helpful internationally having studied a substantial Company listed
on the Australian Stock Exchange.

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References
Cdn.ek.aero. (2018). Emirates 2016-2017 annual report. [online] Available at:
https://cdn.ek.aero/downloads/ek/pdfs/report/annual_report_2017.pdf [Accessed 16 Sep. 2018].
Cdn.ek.aero. (2018). Emirates 2017-2018 annual report. [online] Available at:
https://cdn.ek.aero/downloads/ek/pdfs/report/annual_report_2018.pdf [Accessed 16 Sep. 2018].
ke.linkedin.com. (2018). Emirates. [online] Available at:
https://ke.linkedin.com/company/emirates [Accessed 16 Sep. 2018].
Statista.com. (2018). Emirates Group-Operating profit between FY 2009/10 and FY 2017/18 (In
billion United Arab Emirates dirhams). [online] Available at:
https://www.statista.com/statistics/300223/operating-profts-of-emirates/ [Accessed 16 Sep.
2018].

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Appendix
Emirates Image