Accounting Financial Analysis Report: A Case Study of Toyota

This report provides a financial analysis of Toyota Corporation, a leading automotive manufacturer, focusing on the environmental and social impacts of its operations. It examines Toyota's engagement with Global Reporting Initiative (GRI) standards, comparing its environmental performance with that of BMW Group. The analysis includes a review of Toyota's positive and negative impacts, key GRI disclosures, and a comparative assessment of the quality and depth of its environmental reporting. The report also discusses the benefits and necessity of break-even analysis for Toyota. The document highlights Toyota's commitment to environmental protection, social responsibility, and sustainable practices, while also acknowledging the challenges associated with the automotive industry's dependence on fossil fuels and raw materials. The report concludes with recommendations for Toyota to enhance its environmental performance and maintain transparency in its reporting practices. Desklib offers this and other solved assignments to aid students in their studies.

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ACC A C A A A S S R ROUNTING FIN N I L N LY I EPO T 1
Executive Summary
Toyoto Corporation is Japanese automotive and the multinational manufacture of the
vehicles. The Toyota is the world's second-largest automotive manufacturer and the company
has produced more than 300 million vehicles up till year 2017. The below report indicates the
impact of the environmental and the social aspects which are going to be in motion due to the
operations of the Toyota and the development in the new smart vehicle and the infusion of
the balance scorecard approach and lastly the benefits and the necessity of the break-even
analysis has been discussed entirely.

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Table of Contents
Executive Summary.............................................................................................................................1
Introduction...........................................................................................................................................3
Part A.................................................................................................................................................... 3
Overview of the environmental and social impacts...............................................................................3
The positive impacts..............................................................................................................................4
Negative Impact.................................................................................................................................4
Four key GRI disclosures......................................................................................................................5
Comparison of the quality and depth.....................................................................................................7
Evaluation of the GRI Reporting Standards by other Motor Vehicle Corporations.............................10
Conclusion...........................................................................................................................................11
Part B...................................................................................................................................................11
Part C...................................................................................................................................................17
Question 1.......................................................................................................................................17
Question 2.......................................................................................................................................20
References...........................................................................................................................................22

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Introduction
The Toyota motor Corporation is the world’s biggest corporation in the world and is engaged
in the business of the vehicles, compressors and the textile machinery. The Toyota
Corporation in the month October was the fifth largest company in terms of the revenue. The
world’s market leader in the sales of the hybrid vehicles and a mass leader of the vehicle
producer is what Toyota makes a brand trustworthy. With the team of the 369124 employees
the company was able to achieve the operating margin of A$2399862 million in the financial
year 2018 (Toyota, 2018).
Part A
Overview of the environmental and social impacts
Toyota Motor Corporation Australia is the biggest brand and the manufacturer of the
vehicles operating under the Toyota and the Lexus brand. Since its founding, Toyota has
carried out the corporate activities based on the two major policies which are the customers
and the concern for the environment. With the operations considered by the Toyota it has a
dual effect positive as well as the negative. The impact of the environment and social factor
by the Toyota’s operations has both the sides of the coin such as positive as well as the
negative (Basavaraj, Ravi, Cranenburgh & Vikkraman, 2018).
GRI Standards are the first global standards for the reporting of the sustainability. The
designed a structure for reporting a wide range of the economic, environmental and the social
impacts. The global reporting standards are pioneers of the environment and help to
understand and communicate the impact of the business on critical sustainability issues
(Chiarini, Baccarani & Mascherpa, 2018).

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The positive impacts
Toyota carries out the continuous ownership and the protection of the forests under
appropriate measures and initiatives. The activities that the Toyota was involved in were
Toyoto Shirakawa-Go-Eco-Institute, Toyomori, Toyota Mie Miyagawa Forest Project,
Toyota Environmental Activities Grant Program. Aprat from this the company was also
involved in the Smart Eco Drive in the other countries such as South Korea (Crane & Matten,
2016).
In the area of the social and the culture Toyota supports the music, dance and the
other programs which also helps to promote the local culture and also helps to support the
youth, and also helps to expand the social welfare and the independent support.
Toyota also helps to promote the development of the human management and aims to
realize the affluent society through consistent supervision. Keeping the environment clean
and safe the Toyota is also addressing the issues regarding the safety of the traffic with the
assistance of the integration of the people, cars and the traffic environment with the aim to
completely eliminate the traffic casualties (Epstein, 2018). To address the climatic change
and the water environment the Toyota Company is also engaged into the implementation of
the CDP Supply chain program and also helps in enhancement of the Annual CSR study
(Fang, et al 2016).
According to the sustainability report of the Toyota Corporation, 83 distributors and
the 4233 dealers from across 80 countries participated in the worldwide Dealer
Environmental Risk Audit (Globalreporting, 2016).
Negative Impact
The cars are beneficial yet the automobile industry has the few radical changes in
their operations and that affect the environment and the society as well. The strong

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dependence on the fossil fuels and the heavy consumption of the raw material leads to the
environmental problems such as the pollution which ultimately creates the breathing
problems and global warming, greenhouse gases and the demand for the petroleum. Due to
increase in the prices of the gasoline the higher fuel car has been chosen and this definitely
impacts the social economic behavior and results in the environmental threat
(Globalreporting, 2016).
The number of the cars increased on the land in such a manner that they are relatively
creates the congestion and disturbs the mobility. The final disposal of the vehicles that are of
scrap nature becomes and evident problem and fleet increases and becomes more costly as
landfill. (Greenbiz. (2016).
Four key GRI disclosures
GRI 102 General Disclosures are defines the major reporting which discloses about
the Organizational profile, strategy, ethics and integrity, governance stakeholder engagement
and the reporting practice.
The GRI disclosures that are most likely to affect the stakeholders of the Toyota Motor
are
 Products and Services
 Emissions, Effluents and Waste
 Energy
 Customer Health and Safety
Products and Services

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The Toyota Corporations is engaged in the wide variety of the businesses such as
manufacturing of the automobiles, air conditioning compressors, engines, electric as well as
non-electric car. It also offers the material handling equipment and the textile machinery.
This information is clearly available on the website of the Toyota Corporations on
https://www.toyota-industries.com/products/. The information is useful for the stakeholders
in order to gain an understanding of the business of the organization and what all products are
manufactured or produced along with the price range. (Haider & Kokubu, 2015)
Emissions, effluents and Waste
Setting up the business within the policies of the environment gives a clear indication
that the company is complying with all the GRI financial reporting standards from Disclosure
102-16 which deals with the values, principles, standards and norms or behavior. For
example the development of the Zero emission vehicle option along with the fast energy
filling stations will influence the stakeholders to invest in Toyota Corporations as the demand
is also high. (Insideevs, 2016).
Energy
Building energy efficient and the mobile society helps the governments and the
markets to choose the cars according to them and enables the customers to choose their
options of the cars which suits best to their needs and the preferences. The use of fuels and
automotive powertrain diversification process attracts the stakeholders and improves the
economy in the dominant market. The use of the Hybrid Vehicles, full cell vehicles enables
the stakeholders to grab greater market share (Isaksson & Mitra, 2019).
Customer Health and Safety

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The human support function helps to pick and fetch the objectives and is used for the
purpose of the safety of the customer and enhances the health management. The product
augments the functions of the body and provides the health support. Thus, the theme
encourages the stakeholders to gain an experience of the same and try to gain advantage on
the other motor corporations and enhance the sustainability (Bailey, Mancheri & Van Acker,
2017).
Comparison of the quality and depth
The quality and the depth of the environmental performance provided by the Toyota
Motor Corporation with the practices of BMW group are outlined below.
Particulars Toyota Corporations BMW Group
Carbon Disclosure Project A GRADE A GRADE
CDP for limiting water
pollution
A GRADE A GRADE
Promote Sustainable
Societies
AA GRADE AA GRADE
Economic and Social
Resources
Efficiently Efficiently and Effectively
Sustainable Value Nature Positive Closet to Positive
Sustainable Value €5.26 billion €3.26 billion
Best Environmental Car 2018 The Automotive Science
Group reports the Toyota’s
Prius Prime the best
environmental car of 2018
BMW gains the second
position in Best
Environmental Car
Performance of the year.
CO2 Emissions Earlier Toyota Prius boasted The BMW company helps in

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41MPG, increased its
efficiency to 56 MPG and
226 grams CO2-e emissions
per mile (Maginnis,
Hapuwatte & Jawahir, 2017).
reduction of CO2 Emissions
in the global new vehicle
fleet by 141 grams per
kilometer and in Europe the
company is sourcing
electricity free of CO2
(Mokhtar, et. al 2017).
Initiatives  Rainforest Restoration
Initiatives in Philippines
 Toyota Traffic Safety
Campaign
 Toyoto Teach
 Together Green in United
States, South Korea,
Philippines.
 Electronic Car
 Cell Vehicles
 Fast Energy Stations
 Electronic Cars
 BMW group’s HIV/ Aids
workplace programmed
 Inzell Initiative
 BMW group Supplier
Initiative Award
Strategy  Development of the
THUMS Model
 Eco Electrification
 Market Penetration
 Offers Product for every
market segment
 Renewable energy
resources
 Foster individual
responsibility and design
the working environment
 Increase diversity within

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 KAIZEN the company and enhance
the innovative strength.
 Comply with GRI G4 and
Sustainability Accounting
Standards
Achievements  Installation of the
Revealing Project Portal
 Recycling 92% of the
Waste Generated which
ends up to 922000 pounds
kept out of landfills
 Adding new Pollinator
Gardens
 Fleet Manufacturer of the
year
 European Fleet CO2
emission continue to fall
 Recycling and the
Dismantling model to
regulate the waste
management.
According to the Detroit Bureau Toyota Motor Corporation and BMW have earned
“A” grades from the report of the Carbon Disclosure Project, a not profit organization which
is based on the United kingdom which helps in reduction of the climate change (Toyota
global, 2017).
Both BMW and Toyota received A grades from the Carbon Disclosure Project for
ultimately saving the water from getting polluted. The performance measures can be evaluate
don the basis of the image below and the table above which considers all the factors from
sustainable value to strategies sand CO2 emissions.

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(Source: Leading Environmental Performnace, 2017).
Evaluation of the GRI Reporting Standards by other Motor Vehicle Corporations
A key feature of the G4 is to make emphasis on the identification and the reporting of
the sustainability issues and the opportunities which are material to the business and the
shareholders. The material issues can create major difference on the performance of the
organisation and are also critical from the point of view of the stakeholders(Epstein, 2018).
The widespread compliance by the other motor organisations will definitely not
benefit the potential investors and the stakeholders of the Toyota Corporations. This on the
contrary will create the competition as the stakeholders like to have an assurance of the
company in which they invest. The group of the stakeholders involve a lot of members such
as customers, dealers, suppliers, shareholders, employees, media, government and the
community as a whole. If the other motor corporations are complying with the GRI Reporting
Standards, then the entire team of stakeholders will have an influence over it. The GRI

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reporting helps to create the transparency and increase the credibility of the organisation
(Toyota global, 2017).
Standard Disclosures which are on the basis of the strategy and the profile for
understanding the performance of the organisation, management approach and the
performance indicators are the key reasons the GRI reporting standards are important and
useful to attract the customers and this will give assurance to the customers.
Conclusion
From the above report it can be analysed that the company needs to care about the social and
the environmental factors that are going to affect the organisation and to evaluate all the GRI
disclosures applicable that are compulsorily required to be followed by the company.
Moreover it is also recommended to constantly review the set benchmarks.
Part B
1 The major costs involved in the ongoing operations are outline below in the form of a table.
Electric Car Amount
Automated
Car Amount
Cathode
$
3,050.00 Engine
$
2,250.00
Anode
$
4,020.00 Gasoline
$
4,500.00
Electrolyte
$
4,500.00 Spare parts
$
3,260.00
Separator $ Accessories $