Memorandum On Quantas Airways Financial -Myassignmenthelp.Com

Question: Discuss About The Memorandum On Quantas Airways Financial? Answer: Introducation We wish to draw our angle of understanding to the constitute of the company to be that of the Group company with the parent company Quantas that is entirely expected to be declaring consolidated information of all its sub constitutes that are mostly under the control of it based on percentage controlling interest according to Epstein(2006, Pg.4) . Quantas Company has sub-constitutes operating segments that are some subsidiaries, associates while others are joint ventures. Which is further said to be foreign or local depending on route of operation it takes with Jetstar and Quantas International operating as foreign subsidiaries and Quantas Domestic as the local subsidiary. The composition is the further done depending on the tasks involved from that of flying passengers to that of cargo as well as that of controlling operations, management and full governance not forgetting the task of special programs and loyalty confirmation. Its from this that we are able to declare the groups main business operations to be that of provision of freight services and air transport services both locally and international as well as time to time issuance of loyalty programs. The aforesaid group operations together with the various company investments the likes of data and digital innovation, clients branding, investment in culture and leadership as well as that of energy and emissions are therefore explaining the great sources of revenue of the company according to Choi(2006, Pg.65) Muthupan dian(2010, Pg.8) states that holding company that entirely controls subsidiary that is permitted by law and regulations to come up with financial statements of all the outlets it controls. Its therefore seen to bar subsidiaries that arent independent in nature by virtue of being owned 100% from preparation of its own financial statements as well as reporting. Most companies that are public in nature and those which has allowed individual interest ownership with Qantas Group of the company being one of it is seen to get its finance from issuance of securities the-the likes of shares, debenture, loans and share options and interest. Payment of debts or debt servicing as well as that from debentures has been to raise funds for operations. Interest on debentures and dividends received as well as payment on the capital return as well as proceeds or return on investments from hedges has seen to be financing Qantas operation. According to Deegan(2012, Pg.5), shares based means of finance of Qantas clearly declares that the owners of the company are the shareholders and especially the first four i.e. HSBC custody with 26%, J P Morgan with 18%, National Nominee and the fourth one City Corp, Colonial First. The diversification on sources of revenue from customers payment has seen the business operation successful as well as exhaustion of the prevailing available ways of finance hence ability to curb finance and operational risks. From the point of view shareholders being the owners of the business the ultimate value and concern is seen to be accorded to them priority wise. Management risks being mitigated by the proper decisions made by directors and respective personnel management levels clearly depicts the high level of corporate governance underway at Qantas Group of companies. Group of Companies the likes of Qantas cant be separated from participation in corporate governance especially having in mind at Qantas the interest of the shareholders is ranked first of all the others comes second. Corporate Governance law Farrar (2008, Pg. 11) requires audit of group companies to be done within the financial year and presentation of financial statements according to the stipulated international standards of auditing as well as that of international accounting standards hence therefore allowing Qantas to have an audit committee comprising of three members responsible for checking on independence of the external auditors via imposition of lawful audit set policies. The law requires that all existing company should operate friendly with the environment hence tasking relevant management to ensure there is compliance safety wise and health wise. Qantas being a company in existence is seen to participate in the aforesaid campaign on environment preservation through access to lawful licences and permits. Great portion of sustenance is witnessed as per the members of the board report to having being caused by labour cost, technology as well as limited resources .According to Eling(2007, Pg.70) ability to clear debts as a going concern attribute is a compliance of the regulation. All sorts of debts especially long term ought to be able to meet in due course as stipulated in the accounts of Qantas referenced in Sharpe(2007, Pg.384). Associates and joint ventures in Qantas Group accounts has minimised the level of control hence leading to the NCI control room as described in So(2009, Pg.167 ) Any interest item under NCI should be accounted for in the ratio manner of controlling interest from the expenses to the revenue as well as for its representation in the statements though in the balance sheet should be in the equity section alone. Non-Controlling Interests depicts representation of the lesser in ownership of the business hence reducing the percentage powers of controls of the head office company There is only disclosure of NCI in the year 2015 hence not being able to state whether the minority control influence is direct or not by virtue of non-disclosure.. Qantas Group of company have being involved in acquisition of subsidiaries, associates and joint ventures there expected to be goodwill on acquisition being disclosed as per Carlin(2007, Pg. 5) However in the year 2016 there was no disclosure and therefore an assumption that the one for year 2015 of $8 million on the acquisition of the controlled entity to have been impaired and written off as an expense according Carlin(2011,Pg.370) ,hence if impaired in profit and loss while if its at par should form part of asset i.e. intangible asset in the financial position. Although there are proceeds gain on disposal of PPE, there is no disclosure of this gain in the profit before tax statement Ozkan(2012, Pg. 1125) hence probably an indication that the gain had not been ascertained as at the close of the period, however a note on the same should be presented as after balance sheet event to inform the users of post balance sheet events taking place Ruscher( 2013, Pg.120) Foreign subsidiaries Jetstar and Quantas International are involved in foreign transactions rate exchanges as described in the consolidated statements of comprehensive and that of changes in equity. As recommended by the law the accountability of this foreign currency conversion is done as per the equity form method Choi(2011, Pg.4). Qantas foreign subsidiaries transactions is accounted for as per the regulations requirements hence an indication of compliance as stated in Pinto (2005, Pg.100). Events or transactions deemed to take place after the reporting day is supposed to be mention so as to facilitate in decision-making. Management reports and guidelines on the operations as well as that of top management should not be left behind while reporting. Conclusion is therefore made informing that this paraphrase is done to the best of our knowledge as well as according to the accounting law and regulation as well as per the data in the Qantas Airways Ltd 2016 Annual Report. References So, S. and Smith, M., 2009. Value Relevance of IAS 27 (2003) Revision on Presentation of Non?Controlling Interest: Evidence from Hong Kong. Journal of International Financial Management Accounting, 20(2), pp.166-198. Eling, M., Schmeiser, H. and Schmit, J.T., 2007. The Solvency II process: Overview and critical analysis. Risk management and insurance review, 10(1), pp.69-85. Sharpe, I.G. and Stadnik, A., 2007. Financial distress in Australian general insurers. 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