Comprehensive Case Study: Financial Performance of REA Group Ltd

This case study analyzes the consolidated financial statements of REA Group Ltd, focusing on the years 2017 and 2018. The analysis highlights the increasing revenue, total operating income, and profit before interest and tax (EBIT) of the company. The income statement reveals a profit for the year of 253100 in 2018, up from 206333 in 2017. The consolidated financial position shows increases in total assets and a decrease in current liabilities. The case study also discusses the application of AASB 10 and the expansion of Home track Australia. The document includes references to relevant literature and an appendix with financial data. Overall, the case study provides a comprehensive overview of REA Group Ltd's financial performance and key trends.

Case Study

Executive Summary
As per the below report it summarizes that financial accounting plays important role in
every organisation that helps to collect financial information and present in front of outsider of
company. From the consolidated financial statements of RAE group Ltd it is understanding that
it is increasing in effective way and 2018 financial information compare with 2017. From the
income statement it is analysed that the company get profit for the year 253100 in 2018 and
206333 in 2017 due to reduce amount of contract expenses. There is evaluating consolidated
statement of financial position as at 30 June 2018 that sum of assets increase in 2018 after
compare with 2017 such as 1722472 and 1578813. Total liabilities of company understand that
781703 in 2018 and 774083 in 2017. So net assets of the company identified that 940769 and in
2017, 804730. After all the analysis it is understanding that the consolidated financial statement
of the company increasing in 2018 after compare with 2017 financial information.

INTRODUCTION
From the ASX200 companies selected REA Group Ltd where analysed of consolidated
financial statement of company (Ellwood and Newberry, 2016) . There is analysing that
Company get revenue from property and online advertising in increasing way in 2018 by 111745
as compare 2017. The total operating income achieve 807678 in 2018 and 671206 in 2017 so it is
increasing by 136472. From operating from deduct all the amount of expenses then achieve
profit before interest and tax (EBIT), 390474 in 2018 and 156379 in 2017. From EBIT less
amount of finance expenses then get increasing amount 227010 in 2018 as compare with 2017.
In the end of income statement get profit for the year in 2018 about 253100 and 206333 in 2017.
Company applied AASB 10 for consolidated financial statements and follow all the accounting
standards (Dyreng and Markle, 2016).
As per the consolidated financial position, it is understanding that in the year 2018 assets
and liabilities fall down continuously as compare with 2017 data. There is analysed that total
current assets of RAE group decreased by 174208. Total non current assets increased in 2018
1438496 as compare with 2017, 1120629. So total assets of the company increased by 143659 in
2018 after compare with 2017. Total current liabilities decrease in 2018 which was 305438 and
in 2017 that was 379095 (Honggowati and et.al., 2017). The non current liabilities of RAE group
increase due to increase tax liabilities that was not good for the company. So total liabilities
increased of company in 2018 after compare with 2017 financial information. Revenue is
described as income from ownership marketing and financial institutions, fewer expenditure
from customer accounts revealed as working revenue in the consolidated financial statements.
From 1 June 2018, the findings of Home track Australia were expanded. Home track Australia
forecasts income ranging from $14 million to $16 million and EBITDA ranging from $6 million
to $7 million in 2019 (Gow, Larcker and Reiss, 2016).

REFERENCES
Books and Journal
Ellwood, S. and Newberry, S., 2016. New development: The conceptual underpinnings of
international public sector accounting. Public Money & Management. 36(3). pp.231-
234.
Dyreng, S. D. and Markle, K. S., 2016. The effect of financial constraints on income shifting by
US multinationals. The Accounting Review. 91(6). pp.1601-1627.
Honggowati, S. and et.al., 2017. Corporate governance and strategic management accounting
disclosure. Indonesian Journal of Sustainability Accounting and Management. 1(1).
pp.23-30.
Gow, I. D., Larcker, D. F. and Reiss, P. C., 2016. Causal inference in accounting
research. Journal of Accounting Research. 54(2). pp.477-523.
Online
AASB 10 Consolidated financial statement. 2019. [Online]. Available through:
<https://www.legislation.gov.au/Details/F2018C00317>

Appendix