Tuesday, December 31, 2019

Analysis For Burberry Plc As A Manager Finance Essay - Free Essay Example

Sample details Pages: 5 Words: 1594 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Most well- run companies make extensive use of ratios internally, to monitor and to ensure efficient running of the organisation. To analyse Burberry plc on managers perspective, first of all explain the role of the managers. Managers are people in charge of the day to day running of the business for maximum profitability and efficient use of Capital and human labour.The following ratios for Burberry will be analysed to ascertain the strengths and weaknesses of Burberry plc and if changes ought to be made by the management for growth ,survival and stability of the organisation. Managers will perhaps be concern with all the ratios but the following are most relevant to the managers. Profitability, Efficiency, Liquidity, Gearing and Investment ratios. My ratios may not differ from members of my group simple because management take into account all ratios. (1) Return on capital employed (ROCE); this is a very important ratio to the management when establishing tar gets for profitability .It measure the performance and return of profit on all the capital invested in the business including long-term loans  [3]  . The ratio will show the link between the profit generated during the financial year and the average long -term capital invested in the same financial year  [4]  . In the financial year to end of March 2009, the ratio was -1.7%, and in 2008 was 39%. There is a huge decline and management will be much concern with the figure in 2009. (2) The second ratio relevant to the management is gross profit margin ratio, this ratio relates to the gross profit of the business to sales revenue of the business in the same period  [5]  .Gross profit represents the difference between sales revenue and the cost of sales  [6]  The gross profit margin ratio measures profitability in buying and selling of goods and services before any expenditure is considered. Burberry plc gross profit margin for 2009 is 55.4 percent decrease from the 20 08 figure of 62 percent. There is decrease of 6.6%, which means that the gross profit is lower relative to sales revenue in 2009 than it was in 2008.Management could take a number of measures to increase gross profit , they can reduce the purchase cost of goods sold and increase sales by given incentives such as discounts or buy one get one free. (3) Another useful ratio to the managers is operating profit. Operating profit margin measures how effective a company can control the costs and expenses associated with their normal business operations  [7]  . Operating profit margin represents the profit from trading operations after paying all variable costs of production. There is high decline in operating profit margin for Burberry plc in 2009, the figure was -0.8% and in the year ended 2008, and the operating profit margin was 20.2%. The figure for 2009 is not healthy operating profit margin and the management of Burberry plc will have to take stringent actions to bring the ope rating profit margin to positive figures. (4) The fourth ratio to analyse is current ratio. This type of ratio compares the liquid assets that are cash and those assets held that will soon be turned into cash of the business against the current liabilities  [8]  . A retail business will normally prefer low current ratio because it can hold fast moving inventories of finish goods that can be turned quickly into cash when sold. Burberry plc current ratio for 2009 was 1.4 times and that of 2008 was 1.3 times. The figure for 2008 was slightly lower than that of 2009 ,this will mean that inventories in 2008 was relatively sold for cash thereby given rise to trade receivables than in 2009. (5) Another important ratio to the managers is average settlement period for trade receivables ratio. A business will normally prefer a shorter average settlement period for trade receivables than a longer period  [9]  . This is because a business will have more funds to invest for more pr ofitable purposes than when average settlement period is longer  [10]  . In this instance the funds are tied up on credit sales. The settlement period in 2008 for Burberry plc was 62 days and that of 2009 slightly increase to 69 days. The management should endeavour to encourage their creditors to make prompt payment, so that when cash is received on time for example within 30 days cash can be use to invest in other areas in the business for profit. (6) Another useful ratio to the managers is average settlement period for trade payables ratio. This type of ratio measure how long on average the business takes to pay those who have supplied goods and services on credit to the organisation.  [11]  A business will prefer longer time to pay all goods supplied to them, so that the funds can be diverted to invest on different ventures for profit before making payment to the suppliers of goods and services. In 2009 the average trade payables for Burberry plc was 12days an improve ment from the previous year of 13days.The management of Burberry can negotiate longer trade payables so that funds can be use to invest on other business activities. However, such a policy can result on loss of suppliers or goodwill. (7) Seventh ratio is sales revenue to capital employed. This examines how effective the assets of the business are being used to generate sales revenue. Higher sales revenue to capital employed is preferred to a lower one. This means the business is using its assets more productively to generate revenue. Burberry asset turnover ratio for 2009 was 2 times an improvement from 2008 ratio of 1.9 times. The management will be concern that assets are not been use productively to generate revenue. (8) Sales revenue per employee ratio relates to sales revenue generated to a particular business resource such as labour. The ratio provides a measure of the productivity of the workforce  [12]  Burberry employees sales revenue for 2009 amounted to  £193, 541 an improvement from the figures from 2008 of  £175,866. (9) Another useful ratio is average inventories turnover period .The ratio measure the average period inventories been held. A business will prefer shorter average inventories period to a longer one .However, a business will take into account demand for inventories and price rises or decline. The management of Burberry will have to consider all that before judging the amount of inventories to carry. In 2009 average inventories held was 180days compare to 2008 figure of 259days, this is not very good for Burberry and management have to find ways to reduce the number of days inventories are held. (10) Finally, Interest cover ratio measures the amount of operating profit available to cover interest payable. Operating profit level must be high to meet interest payable, otherwise the management will not be able to secure loans from lenders because there will be considered high risk. In 2009 Burberry interest cover ratio was -0.7 times and that of 2008 was 17 times .The management will be very much worried about the figure in 2009 because they will not be able to meet their interest payment commitment. EVALUATION AND RECOMMENDATIONS Financial ratios, based on current or past performance are very important to the management and are often use to help predict the future and to assess performance and exercise control. The management should be more particular with ratios relating to profit margins, sales revenue, trade receivables, and inventories turnover. However, management must be aware about the limitations of ratios. Considering the business of Burberry plc trading period for 2008/9, it is very clear that the business had not performed well in those financial years. Comparing the trading periods to other businesses in the same line of trading during the same financial years. Next plc for example had performed just a little better for the years 2008/9 than Burberry. The turnover for Next pl c for the year ended 31/3/ 2009 was  £3, 271500 and in 2008 the figure was  £ 3,329100 which was higher than that of 2009. While as in Burberry the turnover for the same period amounted to  £1201500 in 2009 and  £995400 in 2008, however Next plc average employees are 36973 in 2009 and Burberry had 6208 employees. Turnover per employee is much lower for Next at  £88483 in 2009 and Burberry turnover per employee stood at  £193, 541, this figure is very good employee efficiency and management can be satisfied with that. Burberry operating profit for the year to 31st march, 2008 included a net profit of  £15.1m relating to groups relocation of the global headquarters. In the year to 31st march 2009 the group had increased the provision for onerous leases in relation to this relocation by  £7.9m. There were a lot of ongoing operating costs and capital expenditure due to the relocation and deployment .This has affected their overall profit margin and can be a good inves tment in the long run. Analysis in managers perspective must focus in reducing the risk associated with capital, so that the company can continue as going concern in order to provide returns to shareholders and benefit to other stakeholders, while maintaining strong credit rating. Liquidity risk can also be reduce by ensure that sufficient cash is maintained to meet foreseeable needs. The management can put more resources to products that have higher sales revenue, for example, in 2009, womenswear revenue was  £412.8m more than other groups such as menswear revenue amounted to  £298.4m, and in these instances the management should move resources to products that give them high revenue. In conclusion, the management should not only rely on ratios to make decisions, but to take into account the current economic conditions. They recent credit crunch which was the cause of most companies downturn in the past two financial years is easing and management should be aware of that. Looking at the ratios analysed above for Burberry plc, it appears that the loss in profit in 2009 was as results of credit crunch and the relocation of the headquarters which give rise to future prospects for the company and my advice to the management to be cautious and optimistic. Words 1750 . Don’t waste time! Our writers will create an original "Analysis For Burberry Plc As A Manager Finance Essay" essay for you Create order

Monday, December 23, 2019

Ex-Basketball Player by John Updike Essay - 1044 Words

Remember that boy in high school that was the star of the basketball team? He still holds most of the records for the team. He scored more points than anyone else in the school’s history. He never studied much because he was an athlete. His basketball skills were going to take him places. But high school ended and there are no more games to be played. Where is that former all-star now? In his poem â€Å"Ex-Basketball Player,† John Updike examines the life of a former high school basketball star. Flick Webb was a local hero, and he loved basketball. He never studied much in school or learned a trade because he was a talented athlete. Now years later, the only job Flick can find is working at the local gas station. He used to be a star, but now†¦show more content†¦He never had a chance to go very far in life because he put all of his efforts into basketball and he did not focus on his academics. Updike stresses the point of the lowly position Flick holds at the gas station by referring to Flick as Berth’s helper. In the second stanza, Updike uses personification to compare the gas station and basketball. He describes Flick as tall man, which implies he had the physique to be a good basketball player. However in the same line he uses the phrase â€Å"idiot pumps† (7), implying Flick has the physical abilities but not the intelligence to be successful in the real world. The only players Flick competes with now days are the five â€Å"old bubble-head style† (8) gas pumps at the station. The number five is used here to represent the five players on a basketball team. The pumps take on a human form. They are described as having â€Å"rubber elbows hanging loose and low† (9). The letters on the front of the pump form the faces of these make believe players. Updike compares the gas station and basketball to emphasize the change in Flick’s life. Flick used to be a star on the basketball court, but now he works alone. He sees his past in everything around him including the imaginary gas pump players. The third stanza gives a clearer picture of Flick’s past. Flick played for the Wizards. The name is symbolic because it implies the teamShow MoreRelated The Ex Basketball Player by John Updike Essay597 Words   |  3 PagesThe Ex Basketball Player by John Updike A Loss of Motivation In English Seven we read a poem called the Ex Basketball Player by John Updike. The main characters name was Flick Webb. The poem explains how Flick lost motivation. In high school Flick was an excellent basketball player, if not, the best. After high school Flick didnt continue his basketball skills, and he never had tried as hard on his academics as he did on basketball. Flick now works at Berths Garage and has aRead MoreJohn Updikes Poem Ex-Basketball Player1225 Words   |  5 Pages Ex-Basketball Player Most everyone has had an extraordinary dream; for some, it is to be a movie star or to be on a professional sports team. Nevertheless, while great goals they are, they are not likely. For example, about 1 and 70,000 people become a major movie star (study.com). Additionally, the likelihood of entering the NBA from high school is 3 and 100,000 (ehow.com). Therefore, the great majority are obligated to find something else to pursue. As a result of peoples dreamsRead MoreAn Acclaimed And Award-Winning Writer Of Fiction, Essays,1141 Words   |  5 Pagesessays, and reviews, John Updike also wrote poetry for most of his life. Born and raised in Shillington, Pennsylvania in 1932-died on January 27, 2009. Luckily, he was accepted to Harvard College and graduated in 1954. This is what turned his life around. After school was done, he worked for a few years on the staff of The New Yorker. When his writing abilities were finally noticed, he got the idea to start writing poetry and short stori es. One poem he wrote was â€Å"Ex basketball player† its about an excellentRead MoreAn Analysis Of John Updikes Ex Basketball Player1216 Words   |  5 Pagesabout 0.03% of high school basketball players get drafted out by an NBA team. 0.03% is such a little percentage that it is the same chance of someone getting four of a kind in a first round of poker (www.norwichcsd.org/Downloads/ ProSportsOdds.doc). With this striking percentage it is amazing to think so many young players hope to make it to the pros. In the end, regret and defeat are much too common, a theme that John Updike features in his poem, â€Å"Ex Basketball Player†. The poems persona, FlickRead MoreStar Basketball Player By John Updike1026 Words   |  5 PagesIn the poem Ex-Basketball Player, John Updike recounts the timeline of a once great basketball player named Flick Webb. The journey starts with a description of Flick’s hometown, then shares details about his current job, next it reflects on his high school basketball success, and finishes with his habits outside of work. In the first stanza, the poet is describing the town where Flick lives. Updike references trolley tracks which would imply an early 20th century setting. He also calls out the nameRead MoreDownfall Of A Star By John Updike965 Words   |  4 PagesDownfall Of A Star In John Updike’s poem, â€Å"Ex-Basketball Player,† Updike, an American novelist and poet born in 1932, best known for his â€Å"Rabbit† series, tells the story of an American tragedy when he describes the life of Flick Webb, a once high-school basketball star turned gas attendant. This poem is narrated by an unknown voice, but sounds like a local who knew of Webb’s significance in high school. Webb went from a successful high-school basketball star to a gas station attendant. Updike’sRead More Ex – Basketball Player Essay1084 Words   |  5 PagesIn the poem, â€Å"Ex – Basketball Player† by john Updike, (which is a narrative poem) illustrates the nature of life on how life is potentially is seen has a mirror to other people’s life, especially people who play sports. Life is the physical and mental experience of an individual. An in the poem the main character Flick, supply the poem with a good example of how life is p otentially a mirror for other people. This poem is formally organized, even though it locks some qualities, it still haves theRead MoreLiterary Review of Rabbit Run by John Updike Essays3013 Words   |  13 PagesLiterary Review of Rabbit Run by John Updike John Updikes novel, Rabbit, Run, is about a man named Harry â€Å"Rabbit† Angstrom. Rabbit is a brainless guy whose career as a high school basketball star peaked at age 18. In his wifes view, he was, before their early, hasty marriage, already drifting downhill. We meet him for the first time in this novel, when he is 22, and a salesman in the local department store. Married to the second best sweetheart of his high school years, he is the father

Sunday, December 15, 2019

Unemployment Rate †Article Review Free Essays

THE country’s unemployment rate currently stands at 3. 1 per cent compared with the 3. 4 per cent last year, the Dewan Negara heard yesterday. We will write a custom essay sample on Unemployment Rate – Article Review or any similar topic only for you Order Now Deputy Human Resources Minister Datuk Maznah Mazlan said the government was fully harnessing its workforce to keep the unemployment rate at four per cent and below. This was because according to international standards, this was considered full employment. â€Å"According to the Statistics Department, the percentage of unemployment last year was 3. 4 per cent or 387,9000 people. Of the total, 65,500 were graduates. â€Å"In the first quarter of this year, the unemployment percentage dropped to 3. per cent or 381,300. Of the number 71,600 were graduates,† she said responding to Senator Khoo Soo Seang. Maznah said the government had implemented measures to assist unemployed graduates. These included offering a short service scheme with government departments, opportunities for apprenticeship and internship, and the 1Malaysia Training Scheme. Under the short service scheme, graduates who have not secured jobs in six months after completing their studies have the opportunity to intern at participating government linked companies for a year and receive an allowance of RM1,000 a month. Upon completion, the GLCs will assist in finding permanent positions for them. â€Å"The programmes are to enhance the graduates’ marketability and provide exposure so that they do not have to rely on the government for employment but can start their own businesses,† she said. Article about During 2011 the employment rate decreases from 3. 4% to 3. 1% due to the government effort to control all the recourse and to maintain the unemployment rate under 4%. Based on the international standard the unemployment rate of 4% and below considered as full employment. Although the number of people that unemployed are decreasing but the number of unemployed graduates are increasing. Due to this situation, the government had executed measures to help graduates to get a job. The government offer a short service scheme which give a job opportunity to them besides giving them skills and internship. The allowance are also provided under the short service scheme. This will help to give the graduates exposure and encourage them to do their own business instead of relying on the government for the job. Analysis. Based on the article, we can conclude that the type of unemployment that we can see is frictional unemployment. This type of the unemployment occurs when people are in between jobs, entering and reentering the labor force. This may happen when fresh graduates are actively seeking for a job. The numbers of unemployed graduates increase by 9. 3% maybe due to the lack of soft skills and experience that most employers seek. The measure that the government took to control the unemployment is direct control measure, which is providing training and technical education and job creation in various sectors in an economy. The governments want to encourage the graduates to own a business because when there are more trade and transaction, the government revenue will increase. This will lead to economic growth and therefore can increase in GDP. The effects of decreasing the unemployment rate The first effect of decreasing unemployment rate is the incomes will increases. This will lead towards to more buying power and accelerating the inflation rate. Thus, this will effect to the distribution of income, the savings, production cost and balance of trade. The second effect of unemployment is new businesses will have a hard time succeeding, because everyone is already employed, who is going to work for them? New businesses will have to raise wages to entice people to work there which again raises wages and lowers profits to a point where it makes no sense to even start the business. Great levels of unemployment are around 3-5%. The pros and cons of decreasing unemployment rate The pro of decreasing unemployment rate is increase of income and self-respect. Secondly, increase the job skills. Thirdly, decrease social and political problems. Fourthly, the GNP gap becomes narrower because the GNP gap will almost towards to potential GNP. The contras of decreasing unemployment rate are inflation will occur and the new business will have hard time to survive. The effect of decreasing rate of unemployment towards society The first effect is employment may bring a increase in social outings and interactions with other people, including friends. Secondly, employment the competition for jobs and the negotiation power of the individual increases and thus also the living standard of people with the salaries packages and income higher. Thirdly, employment also brings up calm and steadiness amongst the tax paying citizens. For the fresh graduate employees, they will not face burden to settle their loans. Recommendation or solution The first solution is, government can use progressive tax rate depends on the number of employees and use the current Malaysia Corporate Tax. If we use this method, the company in Malaysia will hire more employees in order to decrease the corporate tax and lead to the zero unemployment rates. The second solution is government can open up Malaysian mind to new kind of industry that can make the Earth as better place in the future. For example, this legislation would create an estimated 3 million new jobs by opening closed areas of the Outer Continental Shelf which is between Malaysia and Brunei for oil and gas exploration, and streamlining the licensing of nuclear power plants. This also would create royalty revenues for the government that the bill directs to a new trust fund that can promote renewable energy. How to cite Unemployment Rate – Article Review, Papers

Saturday, December 7, 2019

Australian Accounting Standards Board(AASB)

Question: Discuss about the Australian Accounting Standards Board(AASB). Answer: Introduction The current study presents a detailed illustration of different systems and mechanisms of accounting that can assist in monitoring, controlling as well as directing business operations with special indication to different operational functions of Qantas Airways. Qantas Airways is the largest airline in Australia from the perspective of size of the fleet, different international flights and worldwide destinations (Qantas.com.au 2016). Qantas Airways possess the share of around 65% of the domestic market in Australia and carries just about 14.9% of overall passengers travelling both to and from Australia. However, the size of the fleet of the company Qantas Airways is recorded to be around 131 that carries out operations throughout 85 destinations. (Qantas.com.au 2016). In addition, the current study presents a critical evaluation of different concepts of measurement that can points out towards the need for reviewing the compliance towards different rules for measurement, assessment of the General Purpose Financial Reports prepared and presented for different users of financial information of Qantas Airways (Yong et al., 2016). Furthermore, the current study also detects diverse issues associated to the process of measurement. In addition to this, the present report also expounds in depth the concepts of prudence and compliance to the conceptual configuration for financial reporting (Qantas.com.au 2016). Evaluation of the General Purpose Financial Reports: Different concepts of Measurement: Conceptual Framework The conceptual framework essentially indicates the intentions of as well as the principles of the general purpose financial reporting. Again, in other words, the conceptual structure is an effectual tool that can assist the board of the company in the process of development of the financial standards founded on different notions. In addition to this, the conceptual structure also helps preparers of specific general-purpose financial reports to build up effectual and simultaneously reliable strategies of accounting while the financial standard can authorize the selection of the particular accounting plan (Williams, 2016). Besides this, the conceptual structure also supports the course of comprehending with interpreting the accounting standards. Additionally, the intent and function of the conceptual structure is also to enhance the overall structure of financial coverage by offering an absolute, restructured and all together comprehensible set of principles (Aasb.gov.au. 2016). The financial statements of the Qantas Airways, complying with the Conceptual Framework AASB helps in managing different intentions of the financial declarations, diverse qualitative uniqueness that in turn establishes the usefulness of the financial statements (Uyar Gungormus, 2016). However, there are diverse components that can shape the entire financial declarations. The essential elements of the financial declaration comprise of the current and non-current assets, current and non-current liabilities as well as shareholders equity. The different items of the financial reports elucidate the financial situation of the corporation. Again, the structure also helps in the process of evaluation of the financial health of the corporation from the perspective of income, operating expenses and the profit (Aasb.gov.au. 2016). Besides this, the conceptual framework also explains in detail different criterion and the decisive factors for recognition and acknowledgment of diverse items in th e financial declarations of the corporation. Problems of Measurement in the context of the AASB Standard and Framework The accounting standard AASB 13 Fair Value Measurement refers to the process of establishment of a single as well as principles-based structure for measurement at fair value at the time there is a need for the Australian Accounting Standard. Again, the AASB 13 normally does not transform at the time when a particular business entity need to make use of the fair value. Therefore, the AASB 13 comprises of different notions regarding the best exercise, assessment principle and has need of application of a fair value (Uno Bartelmus, 2013). The income proceeds of the company Qantas Airways is recorded to be $15816 million during 2015 where the net income proceeds for the passenger adds $13667 million along with the net freight revenue that provides $936 million (Qantas.com.au 2016). Again, the Board of the corporation Qantas pursues a charter and is liable for the establishment and evaluation of the tactical direction and supervision of the overall process of execution of the strategy of Qantas Airways. In addition to this, the CEO of the business is accountable for day to day administration of the operations of the entire Qantas group. Again, the company secretary is liable directly to the Board as well as the Chairperson on different affairs associated to the appropriate functioning of the company. The board of the corporation Qantas Airways is appropriately structured and separated into four committees (Schrand et al., 2016). The committee includes the (Audit committee, Nominations committee, Remuneration Committee a nd the Safety, Environment, Environment and security committee) to augment the shareholders value. Over and above this, the Board of the company also complies with the Groups Continuous Disclosure Policy that calls for the need of preparation and presentation of timely and all together balanced disclosures that can ensure orderly trading of the issued shares of the corporation in a well informed market. Again, Qantas Airways also has a Shareholder Communication Policy that successfully promotes two different effectual ways of communication with the relevant shareholders of the corporation. The board of directors of the company is responsible for the presentation of the remuneration report that in turn complies with the principles conditioned under Section 30A of the Corporation Act 2001. In addition to this, the review of the remuneration report replicates the fact that the short-term incentive plan can be regarded as the Annual at risk incentive plan for diverse members of the work force of the Qantas Airways. The Board of the corporation Qantas Airways also assesses the performance of all the members of staff against the factors slated in the scorecard measured at approximately (140%). However, the long-term incentive plan is the policy of the incentive payments to the executives that are essentially assessed based on the three-year performance plan of the company. Thus, the strong financial condition of the corporation Qantas Airways also aided the management of the company to handle the downturn and attain good financial even for the period of the period of the Global Financial Crisis (Schipper et al., 2016). Assessment of the measurement of items in the financial reports of Qantas Airways The assessment of the financial reports includes evaluation of the consolidated financial statements of the Qantas Airways that are in essence the general-purpose financial reports. The corporation Qantas Airways prepares the general purpose financial reports in compliance to standards specified in the Australian Accounting Standards Board (AASB) along with the Corporation Act. Besides this, the corporation also prepares and presents the financial statements in line with the International Accounting Standards Board as well as the International Financial Reporting Standards (Ryan et al., 2014). Assets: According to the financial declarations registered for the period of the year 2015, the total assets of the corporation are recorded to be $17530 million. Again, the assets possessed by the company are essentially expressed in terms of the Australian Dollars that are essentially the operational currency of the particular firm. However, the process of evaluation of assets stated in the financial statements reveal the fact that the assets can be categorized as the as held for sale that are essentially measured at lower value of the identified cost compared to the fair value after the subtraction of the costs incurred for sales. Nevertheless, the net defined asset of the company Qantas Airways is recorded at the fair value of diverse plan assets after subtraction of the current value of the definite benefit obligation (Richard David, 2016). Liabilities: As recorded in the financial statement of the corporation Qantas Airways, the overall liabilities of the corporation Qantas Airways stands at $14083 million during the period 2015. Nevertheless, the balance sheet of the company records both the current as well as different non-current interest-bearing liabilities that can be utilized for financing the functions of the business of Qantas Airways. As per the annual financial report of the company Qantas Airways, the item of liability in the balance sheet of the company is recorded based on the historical cost and valued at the operational currency that happens to be the Australian Dollar. The net defined liability of the company is calculated at the fair value of different plan liabilities after subtraction of the present value of the defined advantage requirements (Rankin et al., 2012). Equity: A study of the balance sheet of the corporation Qantas Airways replicates the fact that the equity of the shareholders of the company stands at $344 million during the year 2015. As mentioned in the annual declaration of the firm, the derivatives expressed at the fair value by means of the profit as well as loss is calculated at the fair value (Rahman, 2013). Therefore, the company uses different model on accounting the derivatives that calls for the need of the fair value measurement. Inventory: The financial position and the degree of efficiency of the operations of the company can be analyzed from the evaluation of the level of inventory of the firm. The inventory of the company Qantas Airways augmented and rose to $322 million during 2015 from the recorded figure of $317 in the year ago period. The reason behind the augmentation of the inventory is primarily owing to the increase in the engineering expendables; shrink in different consumable stores and the reduction of the work in progress. However, the lack of potential of the firm to manage the inventory of the Qantas Airways might perhaps weaken the competitive position of the business (Qantas.com.au 2016).Accounts receivable, provision for bad debt and doubtful debt: As mentioned in the annual consolidated financial declarations of the firm Qantas Airways, the accounts receivables of the company are registered to be $959 million in the year 2015. The annual declarations for the company reveal the fact that the current receivables of the company Qantas Airways declined from $1196 million to $959 million during the period 2015. Again, the numeral for the non-current receivables in the balance sheet also reflects a decrease from the $158 million during 2014 to $134 million in the year ago period (Myers, 2016). Again, the decline in the overall accounts receivables can direct towards the decrease in both the trade debtors as well as the sundry debtors. Again, the company essentially recognizes the trade receivables at the fair value and are enumerates the same at amortized cost using the interest method after subtraction of different payments for impairment. Again, the administration of Qantas Airways formulated an optimal framework for capital by simultaneously lessening the debt and escalating the liquidity that led to the enhancement of the return on employed capital to around 16%. However, the transformation program of Qantas Airway also assisted the business in making the repayments of roughly $1 billion of the total net debt of the corporation Qantas Airways (Qantas.com.au 2016). Plant, property and equipment (PPE): As per the annual financial declarations of the firm, the plant, property and equipment of Qantas Airways amounted to $136 million in the year 2015. Nevertheless, the plant, property and equipment (PPE) of the company Qantas Airways were registered to be $134 million in the year 2014. The reports marked the 1.4% increase in the plant, property as well as equipment in 2015. The analysis of the financial reports reflects the fact that the non-recurring fair value calculation for the PPE that are classified as held for sale can further be categorized under the fair value ladder based on utilization of different inputs of appraisal mechanism (Yong et al. 2016). Depreciation: As per the reports declared in the annual statements, it can be hereby ascertained that the depreciation and at the same time amortization cost were recorded to be lesser with $195 million after reduction ensuing from different non-cash impairment to the Qantas International fleet. Depreciation and amortization expenses were essentially lower than the $195 million of the diminution ensuing from the non-cash harm to the Qantas International fleet. Again, the depreciation and amortization expense was essentially registered to be $1422 million in the year 2015 that increased from the year ago figure of $1096 million (Qantas.com.au 2016). The management of the organization refers to the straight-line process of depreciation based on the various financial items of plant, property as well as equipment except only the land that are not depreciated. The rate of depreciation of diverse owned assets are in essence calculated to allocate different owned assets that are calculated after subtraction of the estimated residual value over the anticipated economic life of the asset of the Qantas Group. In addition to this, the assets of the company are generally devalued from the acquisition date as regards internally produced assets from the time the definite asset can be applied (Miller Power, 2013). Treatment of leases: The Qantas Group fundamentally leases a particular airline under finance leases that has the expiry dates ranging between one and ten years (Kang Gray, 2013). On the other hand, analysis of the financial declaration reveals the fact that the total finance leases of the company Qantas Airways is equal to $1498 million where the operating lease amounts to $2782 million. The financial reports also reveal the fact that the capitalized operating lease liability is in essence calculated at fair value at the particular commencement date of the lease. Again, the measurement of the lease needs to be re-enumerated over a particular term of the lease founded on both principal and interest that is almost similar to finance lease (Qantas.com.au 2016). Analysis of the process of reporting revenue in the financial reports of Qantas Airways: Relationship between the measurement employed and the provision of decision-making The preparer of the financial statements of Qantas Airways essentially complies with the Corporation Act 2001 along with different Listing Rules stated under the Australian Stock Exchange (Aasb.gov.au. 2016). Furthermore, the management of the organization Qantas Airways has adopted the strategy of providing constant disclosures that in turn can help the financiers of the firm in getting a clear understanding regarding the financial performance as well as the financial position of the firm (Henderson et al., 2015). Besides this, the continuous disclosure can also help in augmenting the confidence of the investors regarding the transparency, reliability and integrity of the operations of the organization and the financial statements declared by the corporation. The process of preparation as well as presentation of the financial statement of the firm also follows the conceptual framework AASB (CF). The conceptual framework provides a clear overview regarding the definition and objectives of the financial statements along with the scope and the criteria for recognition of the data. The framework also helps in understanding the process of measurement of different items in the financial statements. Accordingly, the investors can examine the effectiveness of the business by using the financial statement of the firm prepared using different accounting standards of the AASB (Edwards, 2013). The system of measurement employed also indicates the orientation of the preparers of the financial system to prudence in the conceptual configuration. The compliance of the financial declarations to relevant standards can thereby ensure the overall steadiness in the financial information and make certain the nature of the neutrality of diverse activities (Atrill McLaney, 2016). Again, the conformation with the relevant standards for measurement of the financial statements and adherence to different guiding principles can help in avoidance of different attempts of deliberate misstatements in the financial reporting. Therefore, the presentation of the financial statements as per the conceptual framework can help in minimizing the errors in the statements of the company and generate investors confidence. The financiers can thereby rely on the financial statements and arrive at useful decisions (DRURY, 2013). The update as well as improvement of the conceptual framework indicates the process of elimination of the IASB with particular point of reference to diverse notions of prudence. The procedure of updating and at the same time developing the notion of prudence needs to exclude noteworthy factors of faithful representation (Deegan, 2013). The up gradation of the standards also indicates the system of updating diverse point of references to the conceptual framework that in turn refers to the anticipated amendments to the standards, namely the AASB 2, AASB 3, AASB 4, AASB 6, AASB 101, AASB 108, AASB 134 among many others (Barth, 2013). The investors can analyze the performance of the organization by studying the inventory level of the organization and the effectiveness of the organization in conversion of the inventory to sales before arriving at any decision (Bonin, 2013). The measurements of the plant, property and equipment using the relevant accounting standards can help the investors in understanding the value and thereby help the financiers to become responsive to different options of investment of the firm on the PPE. The investments of the corporation on the PPE might possibly indicate towards the outflow of cash that can help in generation of revenue in the future period (Chan et al., 2016). Therefore, the items presented in the financial statements as per the required standards can help the shareholders of the company and the wider community of the financiers in understanding financial position of the firm and boost their sentiments. Conclusion The financiers can evaluate different items of the financial reports of the corporation Qantas Airways and presents the different concepts of the financial measurements. In addition to this, the current study also helps in understanding the problems related to measurement in the present context of the present AAASB standards and framework with special orientation to the operations of the company Qantas Airways. 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