Managerial Accounting: Assa Abloy Analysis Using PwC Value Framework

This report provides a comprehensive analysis of Assa Abloy's performance using the PwC value framework. It examines external drivers, strategic objectives, business model, governance, risk, remuneration, resources, relationships, and various performance metrics including operational, economic, social, environmental, and segmental aspects. The report critiques the quality of information disclosed in Assa Abloy's annual and sustainability reports, assessing elements such as competitive landscape, regulatory compliance, economic impact, social initiatives, and technological advancements. The analysis concludes with an overall assessment of the company's materiality and reporting practices, highlighting areas of strength and potential improvement. This detailed evaluation offers valuable insights into Assa Abloy's value creation and reporting transparency.

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
Name of the Student
Name of the University
Authors Note
Course ID

1MANAGERIAL ACCOUNTING
Executive Summary
The value framework of PwC is depicted with the approach for managing and measuring the
company’s performance and at the same time reporting the important aspects of disclosures.
This excerpt of information is useful in completion of a reporting model which is designated
as per meeting the requirements of investors in a more transparent and detailed manner. The
various sections of the study have made a critical interrogation for the quality of information
published in the annual report of Assa Abloy. This is identified with the important elements
which are outlined by PWC value framework.
Assa Abloy is considered as one of the global leaders in the opening solutions such as
manufacturing of electromechanical locks, digital door locks, mechanical locks, security
doors, hotel security and entrance automation. The consideration of both annual report and
sustainability report are analysed as per individual framework elements which are
commented upon as per quality of performance. The important health elements of
organisation have been conducted with strategy goals objectives, governance, risk and
remission aspects. The organisational performance elements have included segment of
performance, environmental performance and economic performance.

2MANAGERIAL ACCOUNTING
Table of Content
s
Introduction................................................................................................................................4
External Drivers: Competitive...................................................................................................4
External Drivers: Regulatory and Geopolitical..........................................................................6
External Drivers: Economic.......................................................................................................7
External Drivers: Social.............................................................................................................9
External Drivers: Technical.....................................................................................................10
Strategy: Strategy objectives....................................................................................................12
Strategy: Business model.........................................................................................................13
Strategy: Governance...............................................................................................................15
Strategy: Risk...........................................................................................................................17
Strategy: Remuneration............................................................................................................18
Resources and Relationships: Financial Assets:......................................................................20
Resource and Relationship: Physical Assets............................................................................22
Resource and Relationship: Customers....................................................................................24
Resource and Relationship: People & Culture.........................................................................25
Resource and Relationship: Innovation – G&S.......................................................................27
Resource and Relationship: Brand & Intellectual Assets........................................................28
Resource and Relationship: Processes & Supply Chain..........................................................29

3MANAGERIAL ACCOUNTING
Performance: Operational........................................................................................................31
Performance: Economic Performance......................................................................................33
Performance: Social Performance:...........................................................................................34
Performance: Environmental...................................................................................................36
Performance: Segmental..........................................................................................................37
Materiality................................................................................................................................39
Conclusion................................................................................................................................41
References................................................................................................................................42

4MANAGERIAL ACCOUNTING
Introduction
The present content of the report has been stated in terms of the PWC value
framework applied for Assa Abloy. The main experts of the study will examine the different
types of the areas pertaining to the activates such as sourcing of the information from the
strategic objectives, stakeholder relationship, performance and resources. The important
considerations of the report will also include the various types of the other extent of the
discussions which will be focused in terms of aligning the decision-making framework of the
organization with the use of the appropriate accountability concepts.
External Drivers: Competitive
Report Extract-Page 13
Reporting Critique
The discussion on the competitive aspect can be identified under Globalization
benefits of ASSA ABLOY. The reporting critique for the competitors can be further found in
terms of the value creation in distribution. The product leadership offerings are also stated
under the annual report.

5MANAGERIAL ACCOUNTING
Accessibility
The accessibility of such an information can be depicted under the markets overhead
stated with markets under page 13 of the annual report. The information on the product
leadership can be depicted in terms of the product leadership heading which is shown under
page 30 of the annual report.
Comprehensiveness
The comprehensiveness can be depicted in terms of the local presence in terms of the
competitive advantages. The similar concept is also applicable to the globalization trend of
ASSA ABLOY for promoting the various aspects of smart and cost-effective approach. The
competitiveness in terms of the product leadership can be depicted with the offering of the
new products pertaining to the high innovation rate. The launching of the new products has
further accounted for 25% of the overall sales.
Overall Conclusion
ASSA ABLOY is discerned to carry out the competitor’s risk analysis on both social
and local level. Moreover, it has considered significant disclosures on the global scope of
competition associated with the company thereby making the overall disclosure process as
good.

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External Drivers: Regulatory and Geopolitical
Reporting Extract: Page 101
Reporting Critique
The scope of information as per the regulatory framework can be found under Report
on other legal and regulatory requirements. These is significant scope of information declared
as per the accounts and the consolidated accounts. The geo political context of the
information has been stead under the risk management disclosure.

7MANAGERIAL ACCOUNTING
Accessibility
The expert of information on Report on other legal and regulatory requirements can
be sourced in page 101 of the annual report. Moreover, there is significant nature of the
information leading to the geo-political changes in the business which can be duly referred in
pages 10, pages 13 and page 26 of the annual report.
Comprehensiveness
 The geo political context of the information has been further stated with the exposure
to the various types of information pertaining to the strategic, operational and
financial risks.
 The regulatory requirements as per the annual report is stated with the opinions audit
of the annual accounts as per the ASSA.
 The main basis of the opinions has been further depicted with the conduction of the
audit as per the generally accepted auditing standards in Sweden
Overall Conclusion
It can be seen that despite of the sufficient nature of the disclosure on the Report on
the legal and regulatory requirements in terms of the Responsibilities of the Board of
Directors and the Managing Director and Auditor’s responsibility. However, there is a
significant gap of information pertaining to the geo political changes. Therefore, such a
disclosure pertaining to this information can be seen to be bad.
External Drivers: Economic
Reporting Extract: Page 70

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Reporting Critique
The reporting critique as per the economic information can be identified in terms of
the various types of the disclosures made under research and development. The economic
benefits are stated with the impact on intangible assets and PPE disclosures.
Accessibility
The accessibility of this information can be seen under page 70 of annual report. This
is directly stated under Research and development. The economic benefits are also stated
under the other intangible assets and PPE disclosures in page 70.
Comprehensiveness
 The company has stated that the various extent of the information as considered per
the research expenses incurred.

9MANAGERIAL ACCOUNTING
 Moreover, the developmental expenditures are recognised as per the information
given in the balance sheet of the company with the main extent of information
pertaining to generate the future economic benefits.
 The information on the intangible assets is also seen with a non-acquisition related
economic benefits for the assets associated with the group. Such an asset is depicted
under the initial recognition cost and amortization.
 The comprehensiveness of the reporting has been further seen with the
Overall Conclusion
The overall depictions of the information show that there is significant nature of
reporting for the economic impacts there is considerable number of sources included by the
company in their annual report with the implication on intangible assets and PPE. Therefore,
such a reporting of information can be stated as good in nature.
External Drivers: Social
Reporting Extract: Page 7
Reporting Critique
In the section of goals and outcomes it can be seen that there is significant disclosure
of the information considered with the social KPI.

10MANAGERIAL ACCOUNTING
Accessibility
The social KPI information can be extracted from page 7 of the annual report.
Comprehensiveness
 The social KPI is portrayed from the information associated with the injury rate and
role of women in management positions.
 The company has set a social target of reducing the injury rate by 55% from 2015 to
2020.
 The main target of the company has been depicted in terms of the initiatives taken by
the company pertaining to allocating 30% of the management positions to be held
women’s
Overall Conclusion
The company has stated about various sources of the information pertaining to the
information associated with the injury rate and role of women in management positions. In
addition to this, there is considerable amount of disclosure pertaining to the initiatives taken
by the company to allocate noteworthy position to be held by women. Due to large variety of
information available pertaining to social initiatives this disclosure can be depicted as good.
External Drivers: Technical
Reporting Extract: Page 58

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Reporting
Critique
There has been
significant portion
of information
stated with the
disclosure of
Global
Technologies.
Accessibility
The information on the Global Technologies is stated under page 58 of the annual
report.
Comprehensiveness
Global Technologies is depicted with an organic growth of 7%. The acquisition and
the divested units are seen to be pertaining to the contribution of 5% of sales pertaining to the
technological initiatives. The contribution of global technology in the operating income has
been represented with a contribution of 15% pertaining to the global technologies.
Overall Conclusion
It can be concluded that there is very less information pertaining to the disclosure of
technology. Therefore, such an information can be depicted as ugly.