Accounting and Reporting Assignment
Part A. Balanced Score Card and Strategy Map
Using the same company that you were allocated for Assignment 1 (Qantas) obtain the 2015 Annual Reports from your company's website.
1. Using your company's annual report, identify and explain the company's strategy as per Porter's Generic competitive strategies (Text p. 392).
2. Identify goals relevant to the company, and propose 2 KPI's for each quadrant of the balanced scorecard.
3. Draw the company's strategy map (similar to Text p. 427).
Part B. Sustainability Reporting
Using the 2015 Sustainability/Corporate Responsibility Report from your company's website. Qantas
1. Describe and evaluate the following elements in this report:
(i) Evidence that sustainability is a critical part of the company's mission, and motivations for issuing a sustainability report.
(ii) The scope of the sustainability report.
(iii) Attempts to address the GRI content and quality principles, if applicable.
(iv) Key achievements in sustainability initiatives.
(v) Main findings in the assurance or review of the sustainability report by external committees, accounting firms or consultants.
(vi) Type of assurance provided for the report.
2. Using the elements described in Part B 1 above provide an overall evaluation of the 2015 Sustainability/Corporate Responsibility Report for your company.
Part C. Integrated Reporting
Sustainability reporting typically only covers 3 of the capitals and not the other 3 covered in integrated reporting. For your company, explain how the reporting by the company would need to be extended to embrace full integrated reporting.
Part D. Budgeting
Use the 2015 consolidated financial statements of your company to perform the following analysis. Suppose management had based their budgeted consolidated income statement for the current year on the following figures for the income statement: % Increase from previous year
a. Revenue, 10%
b. Expenditure, excluding finance costs, 8%
c. Finance costs, 5%
1. Use the company's actual consolidated data for the previous year to prepare the budgeted income statement for the current year. Follow the company's format and rounding of amounts.
2. Compare the actual and budgeted figures to report the difference (variance) for each item up to Profit for the Period. Was the current year better or worse than management predicted? Use also the analyses from Assignment 2. Give the reasons for your answer.
Part E. Accounting for Decision Making
Superior Hardware has three products: Nail 1, Nail 2 and Nail 3. Data for the 2016 is provided below.
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Products
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Nail 1
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Nail 2
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Nail 3
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Annual volume in units
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60000
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40000
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100000
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Selling price per unit
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$25
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$30
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$20
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Variable costs per unit
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$15
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$22
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$15
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Annual fixed costs are $355,000
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Sales mix
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30%
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20%
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50%
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The company aims to make a profit of $30,000 year. Please ignore taxes.
Required:
(a) Calculate each of the following for the current sales mix:
a. The break-even, in units, for each category
b. The average unit contribution margin
c. The breakeven unit sales volume in total, and for each category
d. The unit sales volume required to earn the desired profit in total and for each category.
(b) 'CVP analysis is useful because it is so accurate.' Comment.
(c) What qualitative factors should be considered when decision-making based on CVP analysis.
QANTAS ANNUAL REVIEW 2015 -
http://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgyw/file/annual-reports/qantas_annual_review_2015.pdf
http://www.qantas.com.au/infodetail/about/environment/our-commitment-to-environmental-sustainability.pdf
Attachment:- Textbook Page 392&427.rar