Integrated Business Management Project Limited Resources

Question: Talk about theIntegrated Business Management Project for Limited Resources. Answer: Writing Review on David Joness Marketing Strategy: Figure 1: The logo of the David Jones Company. (Source: Ferrell and Hartline 2012) As per Perreault et al. (2013), the procedure that permits an organization or any association to accomplish a maintainable upper hand by concentrating on restricted assets on the best of the chances so that there might be increment in the deals is known as the promoting technique of the organization. In a business the accompanying of a suitable and a viable showcasing technique is an absolute necessity as it the factor on which the deals of the products of the organization depends. The primary prerequisite in a business is to define the business objectives for the association with the goal that the association may then work appropriately toward accomplishing it. As referenced by Armstrong et al. (2012), these are statement of purpose of the business. After then association sets its fundamental goal, the home advance included is the execution of a powerful showcasing system. This advertising methodology set some elevated level principle for the association that would administer the di verse showcasing endeavors that the association would concentrate on. The primary and the main purpose for the execution of the advertising methodology in any of the organization are to build the deals and to accomplish the objectives that are set by the association (Ferrell and Hartline 2012). It additionally encourages the association to arrive at its reasonable upper hand. The advertising incorporates all the diverse present moment and long haul exercises in which the association is engaged with. There are a wide range of ideas and definitions given on the promoting system, notwithstanding; a large portion of the organizations couldn't recognize the technique and the various targets and strategies of the organization. A decent system or for the plan of a decent technique, a couple of focuses are should have been incorporated: a) Place: This one of the significant inquiry that requires being replied before the development of the methodologies of the organization. Prior to arranging the organization procedures, the organization first needs to choose and examine where it requires selling its items and the contenders with whom it needs to contend. b) Product: The following inquiry is the thing that ways can the organization about the kind of the item which the organization manages. The sort of item managed the organization requires the suitable market for its selling. c) Resources: For the advancement of the methodologies the organization additionally requires to concentrate on its asset accessibility moreover. For the usage of the procedures that have been shaped by the organization, there is a necessity of the asset. d) Value sustention: The following element is that in what ways the organization could give its clients great and one of a kind items so it could stay aware of the enthusiasm of the organizations and keep up the business stream of its items (Jones and Monieson 2014). Figure 2: The Davis Jones Store (Source: Ferrell and Hartline 2012) These are the general rules that are to be thought of while executing the helpful procedures for any organization or association. In any case, the promoting techniques that are utilized by the David Jones are totally different from these. The David Jones is a notorious retailer of Australia that has diverse departmental stores in the nation and has likewise made a fruitful business in the segment of customer products. The organization encountered an expansion in its deals by 12.2% inside the initial 20 weeks of the year 2015. Figure 3: The business diagram of David Jones before executing the Marketing methodology. (Source: Ferrell and Hartline 2012) The business systems that assisted the David Jones with increasing its deals at such significant level could be recorded as follows: Executing computerized approach: According to the systems that have been actualizing by the departmental store, David Jones, having an advanced methodology for the association is of most extreme significance in todays present day world. The primary inquiry for any organization now daily is whether they have a business site or an email pamphlet or not. Regardless of whatever might be the business, in todays world being nearness online is obligatory. The site of the organization should be made and utilized normally and be an uplifting for the clients. The David Jones office utilized its online nearness as a key to advance their departmental store. Utilization of Consumer Data: One of the principle segments of the David Jones system is the program of the buyer examination. The organization tapes the information and the inclinations in regards to its clients so it could give them progressively customized items. As referenced by Howard (2015), these are the techniques that the organization has executed for contacting its clients in an increasingly customized way. This likewise enables the clients to feel as the organization is focusing on them (Peter et al. 2012). Concentrating on the Content: The substance alludes to the merchandise and the item that the organization has for show to the clients. The David Jones Company accepting this as a genuine and henceforth for expanding g the quality and the nature of its substance, it as of late named Thelma McQuillen, the fundamental design chief of the Harpers Bazaar as its new style executive for the clients application and magazine of the store. This would assist the organization with renewing and extemporize the current substance of the organization to a superior and wide substance. It has likewise as of late been expressed by Mumbrella, the advertising executive of the David Jones office that the organization has expressed a goal of turning into the best design distributer in Australia (McArthur 2013). Joint effort: The organization puts stock in a joint effort with various people or might be even with some different associations for the advancement of the organization. The David Jones Company has a not insignificant rundown of top abilities of the nation that it has teamed up with for boosting up of its image picture and quality. This rundown incorporates of Jessica Gomes, Adam Goodes, Thelma McQuillen, Gai Waterhouse, Megan Gale and numerous others. The idiom of the organization is that regardless of whether the organization doesn't have a colossal spending plan, it despite everything can appreciate the advantages of getting teamed up with different foundations (Miller and Merrilees 2016). These are the procedures that are utilized by the David Jones departmental stores to build the deals of the organization. These systems doesn't help in expanding the deals and the benefit level, it likewise encourages the organization to give its clients great and high caliber of products and furthermore to know its clients and their inclinations well. This encourages the organization to receive new methodologies in like manner. References: Armstrong, G., Kotler, P., Harker, M. furthermore, Brennan, R., 2012.Marketing: a presentation. Pearson Prentice-Hall, London. Ferrell, O.C. furthermore, Hartline, M., 2012.Marketing system, text and cases. Nelson Education. Howard, J.A., 2015.Consumer conduct in promoting system. Prentice Hall. Jones, D.B. furthermore, Monieson, D.D., 2014. Early improvement of the way of thinking of advertising thought.The Journal of Marketing, pp.102-113. McArthur, E., 2013. The job of retail chains in the advancement of showcasing: Primary source records from Australia.Journal of Historical Research in Marketing,5(4), pp.449-470. Mill operator, D. what's more, Merrilees, B., 2016. Retail establishment advancement: David Jones Ltd., Australia, 1876-1915.Journal of Historical Research in Marketing,8(3). Perreault Jr, William, Joseph Cannon, and E. Jerome McCarthy.Basic showcasing. McGraw-Hill Higher Education, 2013. Diminish, J.P., Olson, J.C. also, Grunert, K.G., 2012.Consumer conduct and showcasing strategy(pp. 122-123). London: McGraw-Hill.

Sustainability Accounting Systems and Information Assurance

Question: Talk about the Sustainability Accounting Systems and Information Assurance. Answer: Presentation The accompanying investigation expresses the frameworks documentation just as the hazard examination systems of JK Saddlery. It assesses the importance of setting and level DFD just as the procedure map in guaranteeing powerful business activity. JK Saddlery fabricates saddler too a rustic supplies to neighborhood providers and sightseers. The business substance inclines toward the conventional method of selling products and offers merchandise to the nearby providers. The products are sold through acknowledge just as the money deals of merchandise. In the ongoing years the firm has been accomplishing extensive money inflow. Be that as it may, the brand has utilized just a solitary clerk in recording the monetary exchange for gathering money and credit installments for providers. In this manner, Hall (2012) noticed that there stays extensive hazard identifying with controlling of money related information just as the misappropriation of assets. The investigation recognizes these dangers and offers the control measures to defeat dangers that represent a danger to the business maintainability of the endeavor. Frameworks Documentation Figure 1: Context Diagram (Source: Created by creator) Figure 2: Logical Diagram (Source: Created by creator) The setting just as the level DFD demonstrates the operational strategies of the business endeavor. There are three Stages in the specific situation and level DFD in the business association that incorporates the Process request, Cyber back just as the execution of the merchandise. In that capacity, this cycle is finished through the accompanying stages: Requisition of products, getting ready Sales request, and executing merchandise to the shopper. As indicated by Geerts et al. (2013), these three phases will guarantee fruitful consummation of the business request. In such manner, it very well may be expressed that the market and the operational strategies of the business endeavor will be resolved through the usage of the business request in the business association. The above setting and the DFD graphs will help the purchasers in the dynamic procedure. Thusly, the unique circumstance and the DFD outline will help the administration of the Business substance to actualize significant business operational and promoting methodologies to make the business methodology progressively powerful. In any case, the execution and release of the products is a confused method that is reliant on deals demand request just as the improvement of the business order request of the business substance. In such manner, it very well may be expressed that DFD chart is an oversimplified at this point imaginative strategy that can help the business substance to execute smoother deals tasks. The legitimate and DFD structure is definitely not a brought together technique and fluctuate as per the business portion the business association is right now working. The business procedure mapping states the natural business structure that is actualized in the business association. Figure 3: Process Map (Source: Created by creator) The above procedure map portrays the business technique followed in the business association. The receipt installment in the products would be assessed to comprehend that it meets the significant compliances and the important rules in the business association. The operational division will inspect every one of the products that will be sold by the providers. Thusly, if any great doesn't coordinate with the necessities of the buyers it will be appropriately come back to the provider. The above procedure mama expresses the absolute deals method that can be followed in the business association that would add to the operational abilities of JK Saddlery. Hazard Analysis There are natural dangers existing inside the money related structure of the business association. On account of JK Saddlery, a manual procedure is actualized in the business association in recording the money exchanges just as the assortment of assets. From the contextual analysis it tends to be built up that the chronicle of the money exchanges is a convoluted technique and can require significant time. In this way, this can adversy affect the execution of the monetary methodologies for the business substance. The clerks work includes a great deal of complexities. In such manner, Messier (2016) noticed a blunder from the business receipt request could prompt errors in the complete deals system and the assortment of assets in the business association. Absence of faculty in the HR of the business association is one of the qualities behind the monetary dangers in the association. The clerk of the business association handles the whole money related angle. Along these lines, the activity job isn't assigned into the different elements of the association. In that capacity, the administration of the business association needs to take the vital measures so the entire fund division isn't reliant on any single individual. JK Saddlery has conveyed predictable business exhibitions over some stretch of time, which has brought about steady deals income over a period. Accordingly, Collier (2015) noticed that these colossal measures of money exchanges must be assessed in a serious way so that there is no disparity in the monetary exchanges of the business element. Definite assessment installments for the business venture can be another issue if the budgetary exchanges are not managed in a suitable way. Bebbington et al. (2014) expressed that the significant outcomes of wrong budgetary evaluation would prompt the wastage of the monetary assets of the element. Moreover, this can bring about the ascent in the operational costs of the business substance. Other than this, there is no interior reviewing systems that is followed in the business association. In this way, there is no consistent observing of the budgetary methods followed in the business association. In that capacity, this is one of the basic shortcomings present in the budgetary arrangement of the business association. Subsequently, this is a significant hazard present in the operational arrangements of the business venture and can have an effect on the monetary state of the business substance. The installments got by the mail will must be assessed in a profundity way to forestall any sort of duplication. Copied checks will must be examined to be forestall any sort of budgetary misfortunes or terrible obligation for the business element. What's more, the financial arrangements in the business element must be assessed in deciding the operational procedures of the business element. As indicated by Simons (2013), the financial systems in the business substance will contains existing disparities that outcomes in postponement of the account of the assets. Actualizing an inner review office in the association will help the business element to screen the inflow and surge of money in the association. Other than this, Zadek et al. (2013) expressed that the business association must enroll accounts work force in the business association to quickly enlist accounts proficient in the business association to build validness of the money exchanges. What's more, the business element will need to survey the budgetary state of the business substance for the advancement of the association objectives and the goals. The brand needs to receive viable bookkeeping programming for snappy chronicle of the money related exchanges of the business element. In such manner, it very well may be said that the bookkeeping programming projects will help in doing budgetary investigation of the association. Strategies like proportion investigation and planning methods of the association will help the business association in surveying the money related situation of the association and reacting suitably for hierarchical development. In the current time, the buyer purchasing process is manual and no accentuation on innovation. Along these lines, it is fundamental that the purchasing procedure is re-improved in guaranteeing smoother business tasks. Geerts et al. (2013) expressed that the customer needs to invest less energy for the installment of bills that would diminish the group in the business substance. End It very well may be expressed that JK Saddlery will have numerous issues in existing cashiering position of the business. This remembers there are a few specialized complexities for the money related activities of the business element. Accordingly, the administration of the business element needs to react suitably to outline the essential budgetary methodologies and arrangements to help the business element in address the issues identified with the account of money related exchanges and gathering money for the business association. In the event that such issues are not survived, these variables will prompt ascent in the operational costs of the business element. The frameworks documentation in the association expresses the all out procedures engaged with the operational procedures of the business association. These incorporate apparatuses like E-business, digital check and the delivery or the execution of merchandise. With regards to DFD and legitimate outline, the brand will need to make the strides like deals demand, creating deals request and at last executing the products to the customers, The inward evaluating instruments of the association would help the business association in guaranteeing validness and straightforwardness in the books of records in the association. Other than this, the association needs to select more workforces in the records and money office to guarantee more noteworthy coordination among the association during the business technique. In such manner, it very well may be expressed that the administration of the business endeavor needs to choose the proper bookkeeping programming that will satisfy the requirements of the association. References Bebbington, J., Unerman, J. furthermore, O'Dwyer, B., 2014. Supportability bookkeeping and responsibility. Routledge. Collier, P.M., 2015. Representing chiefs: Interpreting bookkeeping data for dynamic. John Wiley Sons. Demski, J., 2013. Administrative employments of bookkeeping data. Springer Science Business Media.

How to Write a Perfect Barista Resume (Examples Included)

Step by step instructions to Write a Perfect Barista Resume (Examples Included) Nowadays, espresso is not kidding business. In the event that you control someone’s every day caffeine get to, you could grasp their whole day. Of course, it may not be the degree of social obligation of, state, a mind specialist, yet you’re as yet giving what numerous individuals (myself included) would call a fundamental assistance. From the in vogue euros)How to Write a Perfect Occupational Therapist ResumeHow to Write a Perfect Physician Assistant Resume (Examples Included)How to Write a Perfect Receptionist Resume (Examples Included)How to Create a Perfect Retail ResumeHow to Write a Perfect Sales Associate Resume (Examples Included)How to Write a Perfect Social Worker Resume (Examples Included)How to Write a Perfect Truck Driver Resume (With Examples)

Three Myths about Student Loans

The following article was written by Blaine Blontz, MBA, www.financialaidcoach.com We hope you will find this article a good resource as you prepare to navigate the financial aid process. With many high school seniors having made the important and exciting decision of where they will attend college in the fall, parents and students alike are looking at the next set of hurdles standing between them and the first semester. One of those hurdles is putting together a payment strategy. Hopefully this includes grants, scholarships and other forms of aid provided by the school. Additionally, families may have education (529s) or other savings accounts to go along with installment payment plans provided by schools. With the rising cost of college, even with the options previously mentioned, many families will still need help financing the college experience. Students are exiting college with over $20,000 in loan debt, on average. This isn't including loans that are in parents' names. As such, a student loan industry has developed. The Federal Government is involved, as are private banks and credit unions. Considering the number of people impacted by college loans in one way or another, there is much information and opinion floating around. Here are some myths (or half-truths) to be mindful of as your family navigates the college loan process. This isn't meant to scare families as much as it is to make sure that everyone is clear on what they are potentially taking on. A loan will help my student build credit. This is one factor that helps families more easily digest the fact that students and parents are leaving the college experience with thousands of dollars of debt. While college loans can ultimately help students build their credit, the impact on their credit is minimal until a regular payment history is established. For this reason, it's not accurate to think that just because a student has a loan that is deferred (payments begin being made in the future) sitting in their name that they will come out of school with a shiny, high credit rating. It is not until the student shows that they can begin repaying their debt that they truly begin to impact their credit score. This is why I recommend families look into student credit card options to cover the cost of certain goods during the college experience. These can be in the student's name, but still monitored by parents. They can be used for only books initially if there are concerns about misuse. Students can then use them for more fixed costs like certain utilities, groceries, etc. Remember, you do not need to carry a balance to grow your credit. The goal is to use the card and then pay the full amount owed by the due date. That will begin to show an ability to use credit in a responsible way. We all know the dangers of credit cards, but if used correctly they can much more effectively build credit during the college years than loans that are sitting in deferment. My student can get a loan on their own. As looked at in the section above, young adults entering college likely don't have much of a credit history. It's hard to generate a credit score before college, and as a result lenders are hesitant to extend debt to 18 year olds. Yes, there are loans through the Federal Government that are extended without credit requirements, but for incoming freshman they max out at $5,500 in most situations. This unfortunately only goes so far, leaving families with a hefty remaining amount to be financed. Beyond those through the Federal Government, students can take out additional loans in their name. However, in most cases, the bank or credit union will require a parent (or anyone deemed credit-worthy) to co-sign the loan. This means that the parent, and their credit score, is also on the hook for repayment of these college loans. My student will eventually have to pay back our Parent Plus loan. A Parent Plus loan is a way for college to be financed strictly through the parent's name. You can learn more about Parent Plus loans here. Parents are willing to do this to help their student attend college. In some cases, there are expectations that the student, once graduated, will aid the parent in repayment of these loans. While these plans or agreements can certainly be discussed and made, students are not obligated to do so. The loans are in the parent's name. If the loan is not repaid, guess who's credit gets dinged. It's not the student's. It's the parent's. Just because the loan was used to help support a student's education, the student's name is not attached to the loan in any way. For this reason, a parent can't legally force a student to repay this loan unless families have entered into and signed an agreement, which frankly doesn't happen. Hopefully you've found these initial tips helpful in starting your navigation of the college loan process. I offer a session that provides families with their loan options, discussing pros and cons. I also discuss overall strategy when it comes to installment payment plans, education savings plans, and other sources of college payment. You can call (727-372-9685) or email me (financialaidcoach@gmail.com) to discuss this service or others that I offer.

The Dispute Regarding African History From African and...

Currently in the XXI century, several researchers are still trying to study and discover more about the history of Africa, which is a huge continent with historical, cultural, linguistic, racial and geographical diversity. However the methods used to discover the history of a continent varies among European or African historians. Such researchers have different ways of seeing what really proves the history of the people, if the best way is by vivid history, archaeological, written or oral records. Due to the different point of view of European nation, that prefer to believe in concrete materials for study like written sources, arises the doubt whether Africa actually had real history is the past and not just after the colonization by them, when the population was ‘’educated’’ in European models and started to make written registration of their history. A further study about Africa can reveal all its cultural and historical richness. Their knowledge about land management, the discovery of agriculture in the Sahara desert 5000b.c, the development of livestock in regions of southern Africa as in Kenya(1). In addition the north of Africa is been considered the oldest region of the earth. Charles Darwin studies about the human evolution and archaeological sources shows that this region was probably the first one where Homo sapiens appeared(1). Detailed studies about African history can brings the knowledge about the development of the north Africa and how the islamism in regions

Customer Service Recovery Essay - 870 Words

Providing great customer service and having the ability to retain customers require consistency in delivering the anticipated services. Customer service encompasses having the ability to provide a service or product to customers by means in which it was promised. However, there are times when unforeseen circumstances may occur, resulting in customer service breakdowns. Understanding the effectiveness of customer service relations provides the assurance needed to handle complicated service related issues. A well qualified customer service representative has the acquired skill to effectively defuse a potentially damaging service related matter. Service recovery influences customer retention and improves customer satisfaction. Service†¦show more content†¦Customer loyalty increases the opportunity for organizations to build upon its customer base, and boost the return of its existing customers. Repeat business is evidence of satisfied customers. Satisfied customers are happy with the services and/or products they received, resulting in the likelihood of their return to purchase additional items. Upon each return visit, they anticipate the delivery of quality products and/or service. In addition, communication is also critical element of the service recovery process. Communication creates the foundation for a positive customer service experiences. It helps create realistic expectations for both the organization and the customer alike. Open lines of communication encourage customers to express their concerns, expectations, likes and/or dislikes about the services they receive. There are several methods for collecting communication data, the following are common collection methods; surveys, company websites, also the basic CSR and customer interactions. Creating a venue for customers to express their opinions is an ideal method for customers to evaluate your establishment, in its entirety. 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Financial Report Analysis free essay sample

Incitec Pivot Limited (IPL), is leading global chemical manufacturer supplying agricultural fertilisers and industrial chemicals to the Australian and overseas markets. The objective of this report was to analyse and understand how the accounting policies and strategies implemented by IPL impacted their financial performance. The analysis is based on IPL’s annual report which outlines the selected accounting policies, business strategy and performance. Firstly, the report summarises IPL’s activities and strategies during the financial years ending 30th September 2009 and 2010. Secondly, the report identifies the key accounting policies and assesses management’s flexibility in selecting them. Also, the report evaluates the quality of disclosure in IPL’s annual report, identifies potential questionable numbers and attempts to undo any possible distortions in the numbers. Finally, the report examines the financial press discussion of IPL’s performance and accounting numbers. The absence of any impairment [write-down] of intangible assets [13 per cent of Goodmans total asset base, and included in the covenant gearing calculation] was a surprise, Deutsche Bank said. Read more: http://www. smh. com. au/business/writedown-is-not-a-dirty-wordjust-look-at-goodman-group-20090227-8kb1. html#ixzz1YvZOrW5P 1. Summary of IPL’s activities and strategies Incitec Pivot Limited is a leading global chemicals company which has nitrogen-based manufacturing as its core activity. (Incitec Pivot Limited, 2009) The company is involved in the manufacture, trading and distribution of fertilisers, industrial explosives and chemicals. It was formed as a result of the merger between Incitec Fertilizers and Pivot in 2003 and 2006 and expanded by purchasing Southern Cross Fertilizers. IPL owns a portfolio of recognised and trusted brands and is the number one supplier for fertilizers and the number three supplier of explosives in Australia as well as being the prime supplier of explosive products and services in North America. (Incitec Pivot Limited, 2009) The company operates in Canada, USA, Mexico and Australia and has 4500 employees worldwide. The company has grown due to international demand for the four F`s: food, feed, fibre and fuel. IPL supplies 50% of Australia’s agricultural nutrient needs and also assisted Australian farmers to develop sustainable farming. The volatility of the market during the global financial crisis had an adverse impact on IPL. NPAT (excluding individually material items) decreased by 46% from $647. 5m in 2008 to $347. 8m in 2009. IPL’s Velocity efficiency program enabled it to make a significant return to the market in 2010 with a NPAT of $442. 8m (excluding individually material items), which was an increase of $95m. (IPL, Annual report, 2010). 2. Key accounting policies and Accounting Standards 2. 1 Revenue Recognition – AASB 118 Revenue is measured at the fair value of the consideration received or receivable. Trade allowances, amounts collected on behalf of third parties and net of returns comprise the revenue. Revenue is recognised as sales revenue, interest income and dividend receivable. Sales revenue is recognised when the considerable risks and rewards of the ownership have been transferred to the buyer. Interest income is recognised on an accrual basis, while dividend receivable recognition occurs when it is declared or received. 2. 2 Foreign Currency Translation – AASB 121 Items presented in the financial statements of each of the Group`s entities are measured using the functional currency. IPL’s presentation currency is the Australian dollar, the currency used to present its consolidated financial statements. Foreign currency transactions are translated into the functional currency at the exchange rate on the day the transaction occurs. Foreign exchange gains and losses are recognised in the statement of comprehensive income, except when they are `deferred in equity as qualifying cash flow hedges`. These have been calculated following the AASB 121 `The effects of changes in Foreign exchange rates` and AASB 139 `Financial instruments – recognition and measurement`. 2. 3 Income Taxes – AASB 112 The current and deferred tax constitutes the income tax expense which is shown in the statement of comprehensive income. The current tax comprises tax that has to be paid on the taxable income for that period at tax rates as of the reporting date. It also includes adjustments of the past period’s tax payable relating to deferred tax assets and liabilities. The balance sheet method is used to calculate deferred tax. . 4 Consolidation – AASB 127 According to AASB 127, â€Å"consolidated financial statements shall include all subsidiaries of the parent† the financial statements of IPL adhere to this. Furthermore, all inter-company transactions, unrealised gains and losses (unless they occurred as a result of impairment of assets) and balances are eliminated. Investments in subsidiaries are recorded at cost. 2. 5 Impairment of Assets – AASB 136 The impairment test of goodwill is conducted annually or more frequently, if events or changes in circumstances indicate that it might be impaired. Assets subject to amortisation are tested for impairment when events demonstrate that the carrying amount cannot be recovered. Where the asset’s carrying amount exceeds its recoverable amount, an impairment loss would be recognised. 3. Management’s flexibility in selecting key accounting policies If management can be flexible in selecting accounting policies, they can significantly influence financial performance. As per the 2010 Annual Report, the managers of IPL had various levels of flexibility with the items below: 3. 1 Foreign currency transactions – Low Flexibility Foreign currency transactions are a crucial element in the development of IPL as a multinational company, because every movement in the exchange rate has an impact on its performance. As stated in the Annual report 2010, any gains or losses from the settlement of the transactions and the translation of the exchange rates of the assets and liabilities denominated in foreign currency are recognized in the income statement. The flexibility of management regarding this accounting policy is low, because the transactions are translated at a functional currency using the exchange rates valid at the date of the transaction. . 2 Derivative financial instruments – Low Flexibility Derivative instruments have been used by the Group in order to hedge its exposure to foreign exchange, commodity price and interest rate risks occurring as a result of the operational, investment and financing activities. While hedging motivates management’s flexibility to lock in company profits and pro tect them from the volatile exchange rates, it subtracts the profits made under the falling exchange rates. 3. 3 Interest Bearing Liabilities – Medium Flexibility The current interest bearing liabilities decreased significantly from $432. m in 2009 to $108. 5m in 2010. This was a consequence of the company’s issue of the US$800m 144A Bond in December 2009, which increased the diversity and tenor of their debt. During the year ended 30 September 2010 interest of $25. 2m was capitalised relating to interest bearing liabilities used specifically to fund qualifying assets as defined in AASB 123 Borrowing costs. 3. 4 Intangible Assets – Goodwill – High Flexibility As per the 2010 Annual Report, intangible assets represent the largest item of IPL’s total assets at 56%. They consist predominantly of Goodwill at 85%. Adjustments made to goodwill include additions, acquisition of business, impairment of assets and foreign exchange movement. IPL does not amortise goodwill but impairs it annually and as a result in 2010, the company recognised a non-cash impairment charge of $nil compared to $490. 6m in 2009. 4. Accounting strategy employed by management and incentives The accounting strategy management chooses will have a positive or negative impact on financial performance and business operations. The managers at IPL implemented accounting policies that enhanced financial performance in the long term. . 1Evaluation of accounting strategy employed by management Management implemented a strategy to reduce debt levels and improve the gearing ratio of Net Debt/EBITDA by issuing a 10 year bond worth $800m in December 2009. The proceeds from this bond issue were used to repay and cancel the Working Capital Facility with the remaining proceeds used to partially repay the Syndicated Facility. (IPL, Annual report, 2010). The gearing ratio was 1. 39 in 2010 and 1. 97 in 2009. As per the 2010 Statement of Financial Position, Net debt decreased by $366. 3m from $1,463. m in 2009 to $1,097. 1m in 2010. This was as a result of improved operating cash flows and the benefit of carrying the debt in US dollars rather than the Australian dollar which appreciated during 2010. 4. 2 Evaluation of incentives strategy employed by management IPL’s aim is to generate competitive returns for its shareholders through its strategy, and their philosophy is that the remuneration strategy should support the objectives of the business. The majority of the Executives remuneration is â€Å"at risk† and linked to performance and the creation of sustained shareholder value. For example, the Long Term Incentive Plan measured in 2010 Plan was established in 2007 and the Plan required IPL’s total shareholder returns (TSR), measured over the three year period to 30 September 2010, to be greater than 10% per annum compounded over the period. The Company’s TSR was 2. 64% per annum and, accordingly, no awards were made to Executives under the 2007/10 LTI Plan. (Annual Report , 2010) Refer Appendix 1 for table of % of Total Remuneration Annualised. This incentive is related to the strategy to improve financial performance. 5. The quality of the disclosure made in the accounts IPL Limited is listed on the Australian Securities Exchange (ASX) and is therefore subject to continuous disclosure obligations (corporate governance statement, remuneration report, shares, etc) under the ASX Listing rules and Corporations Act 2001. IPL’s Board has implemented the proper and timely disclosure of information to shareholders and the market. IPL uses its website (as well as) other sources to communicate via annual/half yearly reports, share price movements, sensitive and other relevant announcements to ASX. The financial report of IPL Limited highlights its business strategy. It is well structured and informative and in accordance with AASB 101 â€Å"Presentation of Financial Statements†, International Financial Reporting Standards and the Corporation Act 2001. The disclosure quality in the IPL annual report was adequate and informative and complied with ASX, the Corporation Act 2001, IFRSs, IASB and AASB. Table 1: Examples of IPL’s high and low quality disclosures Quality| Disclosure| High| â€Å"Restatement of prior year tax benefit† clearly describes the reason for the change and varied result in terms of Net Profit After Tax for 2009. Refer Appendix 2. High| Operating Segments AASB 8 replaces Segment Reporting AASB 114; this disclosure clearly outlines the change of IPL’s composition from 2 main businesses to four segments. Refer appendix 5. | Low| Deferred Tax Assets and Liabilities Notes 19 and 24 are circular and less than transparent. As these numbers are not explained, it is very difficult to understand how the numbers were calculated. | 6. Potential questionable numbers 6. 1Deferred Tax Assets amp; Liabilities In 2010 financial report both deferred tax assets and liabilities decreased by 80% and 65% respectively. The quality of the disclosure is low and questionable. (see table above) Like other companies listed on ASX, IPL could have an exclusive arrangement with the ATO that they are unable to disclose. As a result, DTA and DTL balances would be questionable in almost all annual reports. Refer appendix 3. 6. 2 Cash and cash equivalents In the year from September 2009 to 2010, the amount of cash and cash equivalents decreased 157% which is significant. Currently, the company has $48. 7m which represents 39% of the cash and cash equivalents in 2009. For a company whose business strategy focuses on growth, financing the acquisition of Nitromak with cash is a questionable decision. An alternative strategy could have been to finance the acquisition with debt, preserving cash resources. 7. Undoing distortions in the numbers On thorough review of 2010 annual report, IPL did not have any obvious areas of distortion. However, the acquisition of Nitromak is a possible area of distortion with regard intangible assets. When reviewing the stated fair value of the 50% equity interest held before acquisition, the consideration amount paid of $97. 1m is $22. m higher than the fair value amount of $74. 8m. Refer appendix 5. Considering IPL held the original 50% interest at fair value it is interesting that the remaining 50% would attract such a premium, hence intangible assets could be overstated. As per note 18, goodwill allocated to Nitromak is $142. 9m, considering the total consideration was $171. 9m, it is very high at 83% and it may have been fair to recognise an impairment loss in 2010. We can support this assumption that asset values may be distorted in the reports due to the write down in 2009 in the carrying value of the Dyno Nobel goodwill of $490. m, the year after acquisition. Table 2: Possible distorted items and adjustments | +/- adjustment| Notes| Intangible Assets| -$22. 3m (overstated)| | Cash amp; Cash Equivalents| +$22. 3m (understated)| The amount IPL paid for the remaining 50% should have equalled the fair value being 74. 8m. | 8. Summary of financial press discussion of IPL’s performance and accounting numbers During the GFC, IPL reported a full-year loss of $179. 9m to September 30, 2009 compared with a profit of $604. 6m in the prior year. IPL wrote down $490. 6m in the non-cash mark to market carrying value of Dyno Nobel goodwill. In 2009, net profit excluding material items slumped 46% to $347. 8m, as sales from the fertiliser business fell 32% to $1. 59 billion due to the challenging conditions in Australia and seasonal conditions in North America. The company is quoted as stating it would also benefit from its Velocity program, with $US60m ($A65. 05m) of savings targeted for fiscal 2010. (SMH, 2009) In 2010, IPL bounced back into profit despite the surging Australian dollar. The company announced a $412m profit compared with a loss of $179. 9m that was restated upwards to $221m in 2009.