Managerial Accounting: Analyzing SAS Company's Financial Statements

This assignment provides a comprehensive analysis of SAS Company's financial statements using managerial accounting principles and the PwC framework. It examines various elements reported in the annual reports, assessing their appropriateness and consistency with the framework. The analysis covers key areas such as strategies and objectives, business model, governance, risk management, remuneration, financial assets, physical assets, customers, people & culture, innovation, brands and intellectual assets, processes and supply chain, operational performance, economic performance, social impact, environmental considerations, and segmental reporting. Each element is evaluated based on report extracts, reporting critique, extensiveness and accessibility, comprehensiveness, and overall strength. The report aims to provide a thorough assessment of SAS Company's financial reporting practices and their alignment with the PwC Value Framework.

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
Name of the Student:
Name of the University:
Author’s Note

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Executive Summary
The main purpose of the assignment is to analyze the different aspects of financial statements of
SAS company which is engaged in business of d. The different analysis will be graded on the
basis of good, bad and ugly policy. The reporting framework of PwC will be followed for the
purpose of establishing whether the financial reports which are prepared by SAS ltd is consistent
with the framework. In addition to this, the various elements which are reported in the annual
reports will be considered if the same are appropriately reported or not.
Table of Contents

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PwC Value Framework Elements....................................................................................................8
1. Value Framework Element: Strategies and Objectives............................................................8
Report Extracts:...........................................................................................................................8
Reporting Critique.......................................................................................................................8
Extensiveness and Accessibility..................................................................................................9
Comprehensiveness.....................................................................................................................9
Conclusion and Strength..............................................................................................................9
2. Value Framework Element: Business Model.........................................................................10
Report Extracts:.........................................................................................................................10
Reporting Critique.....................................................................................................................10
Extensiveness and Accessibility................................................................................................11
Comprehensiveness...................................................................................................................11
Conclusion and Strength............................................................................................................11
3. Value Framework Element: Governance...............................................................................11
Report Extracts:.........................................................................................................................11
Reporting Critique.....................................................................................................................12
Extensiveness and Accessibility................................................................................................13
Comprehensiveness...................................................................................................................13
Conclusion and Strength............................................................................................................13
4. Value Framework Element: Risk Management.....................................................................14

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Report Extracts:.........................................................................................................................14
Reporting Critique.....................................................................................................................15
Extensiveness and Accessibility................................................................................................15
Comprehensiveness...................................................................................................................15
Conclusion and Strength............................................................................................................16
5. Value Framework Element: Remuneration............................................................................16
Report Extracts:.........................................................................................................................16
Reporting Critique.....................................................................................................................17
Extensiveness and Accessibility................................................................................................18
Comprehensiveness...................................................................................................................18
Conclusion and Strength............................................................................................................19
6. Value Framework Element: Financial Assets........................................................................19
Report Extracts:.........................................................................................................................19
Reporting Critique.....................................................................................................................20
Extensiveness and Accessibility................................................................................................20
Comprehensiveness...................................................................................................................20
Conclusion and Strength............................................................................................................20
7. Value Framework Element: Physical Assets..........................................................................21
Report Extracts:.........................................................................................................................21
Reporting Critique.....................................................................................................................22

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Extensiveness and Accessibility................................................................................................23
Comprehensiveness...................................................................................................................23
Conclusion and Strength............................................................................................................23
8. Value Framework Element: Customers.................................................................................24
Report Extracts:.........................................................................................................................24
Reporting Critique.....................................................................................................................25
Extensiveness and Accessibility................................................................................................25
Comprehensiveness...................................................................................................................25
Conclusion and Strength............................................................................................................25
9. Value Framework Element: People & Culture.......................................................................26
Report Extracts:.........................................................................................................................26
Reporting Critique.....................................................................................................................26
Extensiveness and Accessibility................................................................................................26
Comprehensiveness...................................................................................................................27
Conclusion and Strength............................................................................................................27
10. Value Framework Element: Innovation G&S....................................................................28
Report Extracts:.........................................................................................................................28
Reporting Critique.....................................................................................................................28
Extensiveness and Accessibility................................................................................................28
Comprehensiveness...................................................................................................................28

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Conclusion and Strength............................................................................................................29
11. Value Framework Element: Brands and Intellectual Assets..............................................29
Report Extracts:.........................................................................................................................29
Reporting Critique.....................................................................................................................29
Extensiveness and Accessibility................................................................................................29
Comprehensiveness...................................................................................................................30
Conclusion and Strength............................................................................................................30
12. Value Framework Element: Processes and Supply Chain..................................................30
Report Extracts:.........................................................................................................................30
Reporting Critique.....................................................................................................................31
Extensiveness and Accessibility................................................................................................31
Comprehensiveness...................................................................................................................32
Conclusion and Strength............................................................................................................32
13. Value Framework Element: Operational Performance.......................................................32
Report Extracts:.........................................................................................................................32
Reporting Critique.....................................................................................................................33
Extensiveness and Accessibility................................................................................................33
Comprehensiveness...................................................................................................................34
Conclusion and Strength............................................................................................................34
14. Value Framework Element: Economic Performance.........................................................34

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Report Extracts:.........................................................................................................................34
Reporting Critique.....................................................................................................................35
Extensiveness and Accessibility................................................................................................35
Comprehensiveness...................................................................................................................36
Conclusion and Strength............................................................................................................36
15. Value Framework Element: Social.....................................................................................36
Report Extracts:.........................................................................................................................36
Reporting Critique.....................................................................................................................37
Extensiveness and Accessibility................................................................................................37
Comprehensiveness...................................................................................................................37
Conclusion and Strength............................................................................................................37
16. Value Framework Element: Environmental.......................................................................38
Report Extracts:.........................................................................................................................38
Reporting Critique.....................................................................................................................38
Extensiveness and Accessibility................................................................................................38
Comprehensiveness...................................................................................................................38
Conclusion and Strength............................................................................................................39
17. Value Framework Element: Segmental..............................................................................39
Report Extracts:.........................................................................................................................39
Reporting Critique.....................................................................................................................40

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Extensiveness and Accessibility................................................................................................40
Comprehensiveness...................................................................................................................40
Conclusion and Strength............................................................................................................41
Reference.......................................................................................................................................42

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PwC Value Framework Elements
1. Value Framework Element: Strategies and Objectives
Report Extracts:
(Page 6, Annual Report 2016-17)
The report which is shown above shows the strategy of the business for the future and the
strategy is formulated for the purpose of achieving the long-term goals of the business (Owen
2013). The performance of the company during the year has been promising and due to the new
tax regime which is introduced in Sweden, the company has targeted to achieve SEK 3 billion in
the core activities of the business, establish bases in London and Malaga and capitalize on the
brand value of the company in order to ensure even better performance in future.
Reporting Critique
The reporting critique for Strategies and Objectives as portrayed in the financial statements of
the company are:
 The future goals and set of objectives which the business will be following are clearly
shown in the section

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 In addition to this, the goals are also segregated on the basis of how much it is anticipated
that the business will be achieving such goals that is by 2019 or 2020.
Extensiveness and Accessibility
The strategy which is followed by SAS Ltd are easily made available from the financial
reports as the same is provided ion the initial pages of the report that is om page 6. The strategies
are extensively explained in the President’s letter informing the stakeholders about the
performance of the business. Further on Page 12 of the annual report strategies which makes the
business successful are provided. The strategies also include the future expectations of the
business which is provided in page 6.
Comprehensiveness
The president’s letter which is shown in page 6, the over all performance of the business
and also the future perspective of the business are set out effectively on the basis of Improved
Customers Offerings by the company, Enhancing the Efficiency program, Sustainable Aviation
and building up a strong financial position for the business in the market.
Conclusion and Strength
As per the strategies set by SAS ltd and the effective pursuance of the same resulted in
enhanced efficiency of the business. In addition to this, the strategies focus mainly on medium
term and long terms plans as shown the target time period is 2020 in most cases. Therefore, it
can be said that the quality of strategies and objective of the business is ‘good’
.

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2. Value Framework Element: Business Model
Report Extracts:
(Page 8, Annual Report 2016-17)
Reporting Critique
The report critique of the business model of business model of the company are:
 The extract provides a clear view as to how SAS creates value and what are the activities
which the business engages in for the purpose of creating value.

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Extensiveness and Accessibility
The presentation of the business model of the company is effectively shown in Table
form which is quite easy to understand and the accessibility is also effective as the it is presented
in the initial pages of the annual report specifically page 8 which deals with the value creation
model of the business. In addition to this, the annual report also looks promising to provide
further information of the value creation activities of the business in later pages of the report.
Comprehensiveness
The business model of SAS ltd is based on a broad network for effective departure to,
from and within the country in which the business operates. The company offers a variety of
choices in terms of products which are related to business travels, leisure travel. The business
rewards the customers of the business through the EuroBonus programs. The performance
elements of the business are effectively depicted in the business model and the page also shows
different types of capital which is utilized by the business.
Conclusion and Strength
As per the analysis of the Business model of SAS ltd, it is clearly seen that the
management of the company is crystal clear on the activities which the business needs to engage
in for the purpose of attaining the business goals. The quality of the reporting of business model
is ‘good’.