Comprehensive Analysis of Origin Energy's Company Accounting Report

This report provides a comprehensive analysis of Origin Energy's accounting practices. It begins by identifying key stakeholders, including investors, customers, employees, communities, and business partners, and explains how the company's strategies address their needs. The report then examines the cause-and-effect relationships between the company's objectives and strategies, highlighting both lag and lead indicators. A significant portion of the report is dedicated to the balanced scorecard, detailing performance measures across four perspectives: financial, customer, internal business processes, and learning and growth. The report also explores the scope of a fifth dimension, the social aspect, emphasizing safety and employee well-being, and concludes with a summary of the company's performance.

Running head: COMPANY ACCOUNTING
Company Accounting
Name of Student:
Name of University:
Author’s Note:

1COMPANY ACCOUNTING
Table of Contents
Introduction......................................................................................................................................2
1. Key stakeholders and rationale on how these strategies were likely to meet their needs............3
2. Cause and Effect link between the objective and strategy..........................................................4
Part A...........................................................................................................................................4
Part B...........................................................................................................................................4
3. Performance measures for each of the four balanced scorecard perspectives.............................6
4. Scope of fifth dimension in the balanced scorecard....................................................................7
Conclusion.......................................................................................................................................8
Referenced.......................................................................................................................................9

2COMPANY ACCOUNTING
Introduction
Origin Energy headquartered in Sydney is recognised as a publicly listed company with
its stock in ASX. The company was seen to be formed in February 2000, as a result of the
demerger of the “Australian conglomerate and Boral Limited”. In 2001 and 2002, the business
was seen to be acquired by Victorian electricity retailer licence from the distributors such as
Powercor and CitiPower. The sustainability aspect of the company is a five principles model.
The first principle is based on managing the economy sustainability aspects, social environment
and performance data. The second principle is considered with adding and distributing value
which has summarised the “economic value added” factors and connected the financial report in
the annual report. The fourth and fifth principles believes on diversity and transparency which is
able to identify the diverse opinions of the stakeholders for identifying the sustainability aspects.
The main discourse of the report will identify the key stakeholders for the major group of the
stakeholders and also provide the rationale how they are able to meet their needs. The different
discussions of the study have further included each strategy for the cause and effect relationship
associated to the objective and strategy. The next section has discussed the lag and lead
indicators conducive for measure performance. The third section of the study has showed the
balanced scorecard which has been suggested with the performance measures taken from the
four-perspective from the balanced scorecard (Originenergy.com.au, 2018).

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1. Key stakeholders and rationale on how these strategies were likely to meet their needs
The key stakeholders of the company are identified as investors, customers, people
communities and business partners. The identified has been further elaborated in each major
group and explained how these strategies will be able to meet their needs (Originenergy.com.au,
2018).
Investors
It has been seen that the investors are interested in nonfinancial and financial
performance of the company and how Origin is able to “identify, manage and mitigate risks
across the business to deliver sustainable shareholder value”. The major strategies of Origin
include hosting annual general meeting with the various analyst, investors and media briefings
(Originenergy.com.au, 2018).
Customers
The customer looks for quality of service, energy affordability and ability to budget by
removing the variability among the energy costs. Origin is engaged in offering services in form
of service hubs which provides customers with the physical location which they can visit to
address the concerns.(Van Timmeren et al., 2012)
People
The health and safety remain the top priority among these stakeholders. The employees
are further seen to require inclusive workplace fair and equitable remuneration along with
progressive career development. The company takes response from these stakeholders in form of
survey, so that Origin can assist them in shaping their work environment. It has been further
discerned that the company took “manager-led toolbox” talks with employees as a regular part of
their process (Neugebauer et al., 2015).
Communities
The key interest areas include public policy related to the climate change emissions,
water management, land access and coexistence. Origin is proactively involved in

4COMPANY ACCOUNTING
communicating wit these communities and traditional land owners for the operations and
development.
Business Partners
Transparent relation with the company for delivering the shareholder value are some of
the important interests of Business partners. Origin is proactively engaged in form of regularly
communicating with the business partners in their daily operations and the procurement
procedure is seen to be aligned with the expectations of the suppliers.
2. Cause and Effect link between the objective and strategy
Part A
The origin’s strategy is depicted to be aligned with the various types of the objectives
such as connecting the resources to the market and focus on the business which is depicted to be
aligned with the priorities such as designed to drive continued improvement in the performance.
The business strategy of the company is seen with being leader in the energy markets and hold
regionally significant position in terms of the natural gas and production of LNG. The Australia
Pacific “LNG project’s Local Content Policy” is associated with the strategy to include training
and development to build capacity in local businesses and regional buy program. During this
period, there has been more than 360 suppliers who were involved in attending the regional buy
program workshop conducted at Surat Basin.
In order to achieve this objective Origin Energy has taken significant measures which are
depicted to be observed with the strategy such as “decarbonisation rate of our portfolio’s life
cycle emissions from 2014 against a target decarbonisation rate derived from the IEA to limit
global warming to 2°C, with the objective of formally announcing our target by the end of the
2016 calendar year”.
Origin is responsible for supplying energy in the markets of Asia Pacific region, Australia
and New Zealand. Some of the other main strategies of the company is depicted in these areas is

5COMPANY ACCOUNTING
seen with connecting the resources to the market with a clear focus on three main business areas
along with four priorities in the energy sector for ensuring a continuous improvement in the
performance of the company. The four main priority of the company is depicted with improving
returns in energy markets, capital management and funding, delivering growth in the integrated
gas business and growing capabilities by increasing investment in renewables. The board of
director is responsible for bringing the vast experience of the governing activities and business
strategies. The long-term investments of the company are focused on that strategies which will
ensure that company relies mostly on low carbon and renewable energy solutions.
Part B
Objectives and lag and lead indicators in a balanced scorecard
Objectives Lag Indicators Lead Indicators
Financial
 To Maintain adequate
funding and an
appropriate capital
structure
 To maximize shareholder
returns for financial
performance
 Increased Tax rate
 Increase in the
manufacturing cost
 Statutory loss from total
operations
 Engaging in Financial
support options
 Decreased debt from $ 4
billion to 9.1 billion in
2016
Customer
 Increased commitments
towards shareholders and
customers
 “Create value for our
customers by
understanding their needs
and delivering relevant
and competitive energy
 Decreasing performance
score of the company
with D grade
 Workforce strength
reduced by 28%
 Using net promoter score
as a Customers advocacy
 Conducting Engagement
survey for the people at
origin
 Significant improvement
in terms of cash from
investing activities

6COMPANY ACCOUNTING
solutions”  Strong Operational
performance from Energy
markets resulted in an
increased EBITDA
Internal Business Process
 Hold a regionally
Significant position in
natural gas and LNG
production
 Focus on improved
quality of service
 Focus on internal safety
 Decrease in the upstream
activities
 Reduction in both Tier 1
and Tier 2 process safety
events
 Process safety
requirements set out with
HSE Management
 “Process safety
performance is tracked
using leading and lagging
indicators”
Learning and Growth
 To be a leader in Energy
Markets
 To hold a regionally
significant position in
natural gas and LNG
production
 Ensure Growing
contribution from energy
markets
 Increasing price of oil per
barrel
 “EBITDA from the
Integrated Gas segment
decreased $112 million to
$386 million as the maiden
contribution from the
commencement of LNG
sales by Australia Pacific
LNG was offset by the
impact of lower oil prices”
 Building resilience
towards a low oil price
environment
3. Performance measures for each of the four balanced scorecard perspectives
The four perspectives of the balanced score card has been prepared with financial
perspectives, customer perspectives, internal business processes, learning and growth.
Financial Perspectives

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The underlying perspective of the financial performance has been understood with profit
obtained from continuing operations which amounted to $ 354 million and further reduced to
41% in the previous year. This resulted in a strong financial performance for Origin’s energy
market business pertaining to the LNG production carried out by Australia Pacific LNG. Despite
of statutory loss from the operation amounting to $ 589, this was identified as an improvement of
10% compared to the previous year. Some of the other improvement areas and financial
perspectives has been seen with significant progress in terms of improving cash flow, sales cost
reduction and increased equity. The company has been also able to significantly improve the
cash flow and reducing the net debt below $ 9 billion
Customer Perspectives
The important areas of customer perspectives are discerned with increased focus towards
customer’s energy consumption. The improving initiatives for the customer’s perspective are
considered with maintaining community support and goodwill for activities performed by the
company. In general, it has been depicted that origin has supported the customer’s need by
understanding and delivering the relevant competitive energy solution for meeting the need of
today and future. Moreover, Origin energy has improved overall customer experience with the
“strategic net promoter score (NPS)”, which has been conducive in measuring the relationship of
stakeholder within the Origin brand. The company has been also able to provide continued
support by interacting with the customers and understanding their problems (Franzitta et al.,
2017).
Internal Business Process
In the financial year 2016 there had been several number of air quality measures to meet
compliance which was maintained under the compliance of “Environmental Protection Authority
(EPA)”. In addition to this, the contract management process utilizes several processes which is
used to mitigate and identify the risk of suppliers engaged with the organization. The company
has further ensured overriding duty towards the safety and health of the employees thereby
reducing both safety and health impacts on the customers and communities in which it operates.
The health and safety in the origin and workplace is maintained with the relationality sessions
which are applicable to the operating environment. The main approach of the company towards

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health and safety is depicted to be governed with “Health, Safety and Environment (HSE)
Policy’. This policy has been able to explain about the various plans and procedures for
managing health, environmental risks and ensuring safety across all the business channels (Salata
et al., 2015).
Learning and Growth
The company’s main aim is recognized with improving the visibility and able to sustain a
greater insight into the incidents which can be captured by SIFR. It is helpful in supporting the
ongoing safety culture development and learning process (Mardani, Jusoh, Zavadskas, Cavallaro,
& Khalifah, 2015). In support of the “Reconciliation Action Plan (RAP)”, the company is able to
implement the learning process and better understand the culture and histories of “Aboriginal
and Torres Strait Islander peoples”. This initiative taken by the company is conducive in
understanding the cultural diversity and extend a greater reach towards the sustainability aspect.
In addition to this, Origin seeks to continuously learn and implement better ways information
sharing and ideas (Laes, Gorissen, & Nevens, 2014).
4. Scope of fifth dimension in the balanced scorecard
The scope of fifth dimension in the balanced scorecard can be depicted with social
aspect. This should focus on eliminating and managing the various types of hazards and practices
which leads to injury, illness and accident among the employees working in origin. Another
important scope of the social aspect is depicted with providing and maintaining a satisfying and
rewarding work environment to all the employees at Origin (Wang et al., 2015). The measure of
safety performance of the company is done with “Total Recordable Injury Frequency Rate
(TRIFR)”, which is responsible for measuring the companywide work-related injuries occurred
but million hours. As per the results of financial year 2016, the company recorded a TRIFR
offers 4.2 against 3.2. Henceforth, the various steps of the aforementioned initiatives taken with
the social aspect needs to be improved by setting a target of 4.2 against 3.2 for the period. The
company should seek to efficiently use the employee share plan which could be conducive in
understanding the various perspective of the employees in terms of bringing social welfare to the
community (Cappelletti et al., 2014).

9COMPANY ACCOUNTING
Conclusion
The evaluation of the information on key stakeholders has been able to suggest that
investors are interested in nonfinancial and financial performance of the company and how
Origin is able to “identify, manage and mitigate risks across the business to deliver sustainable
shareholder value”. major strategies of Origin include hosting annual general meeting with the
various analyst, investors and media briefings. In addition to this, customer looks for quality of
service, energy affordability and ability to budget by removing the variability among the energy
costs and these are duly recognized by the company. The health and safety remain the top
priority among the general people and company takes response from these stakeholders in form
of survey, so that Origin can assist them in shaping their work environment. Transparent relation
with the company for delivering the shareholder value are some of the important interests of
Business partners. Origin is proactively engaged in form of regularly communicating with the
business partners in their daily operations and the procurement procedure is seen to be aligned
with the expectations of the suppliers. The main lag in the financial indicator is discerned with
increased Tax rate, Increase in the manufacturing cost and Statutory loss from total operations.
The improvement in the learning and growth aspect of the company is identified with greater
insight into the incidents which can be captured by SIFR. In addition to this, the scope of fifth
dimension in the balanced scorecard can be depicted with social aspect.
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