...Research Equities 27 March 2014 │ 20 pages Western Europe New UK Auditor’s Reports A Review of the New Information What's New — UK auditor’s reports became (a bit more) interesting this year. Auditors are now required to provide company-specific information in their reports. We have reviewed some of the new reports and summarise key conclusions here. 3 new pieces of information: — Auditors are required to report on the materiality for the audit, the scope of the audit, and the work done on key areas of audit focus (ie key risks). Sarah Deans +44-20-7986-4156 sarah.deans@citi.com Terence Fisher +44-20-7986-5180 terence.fisher@citi.com Materiality typically 5% of PBT — Information is material if “omitting it or misstating it could influence decisions that users make on the basis of financial information”. The materiality amount is used by the auditor in planning and performing the audit and when assessing whether the financial statements give a true and fair view. In 78% of cases, materiality has been calculated as a percentage of pre-tax profit, usually around 5%, but sometimes as high as 10%. In our view, many analysts and investors will be surprised at this relatively high level of materiality. Large variation in length and quality — Reports we reviewed varied in length from 2 to 7 pages. We also noted very significant variations in quality, with some reports adding little or no value with largely boilerplate comments, while...
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...relationships generated solid branded sales growth (Australian Vintage, n.d.). Principle Business Function ‘The consolidated entity’s principal activities in the course of the financial year were wine making, wine marketing, vineyard management and development’. (Australian Vintage, 2011, p20) Registered Office 275 Sir Donald Bradman Drive Cowandilla SA 5033 (Australian Vintage, 2011, p85) The Auditor In the 2011 financial year the company was audited by a member firm of the worldwide accountancy firm known as Deloitte Touche Tohmatsu Ltd, a firm that is limited by guarantee (Deloitte, n.d.). Deloitte is a firm that was formed in the UK in the early 19th Century by a man named William Welch Deloitte (Deloitte, n.d.). The annual report (Australian Vintage, 2011, p32) states that the audit was undertaken by a South Australian member firm located in Waymouth Street, Adelaide. The partner in charge was Stephen Harvey (Australian Vintage, 2011, p32). The report (Australian Vintage, 2011, p32) states that ‘In...
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...Contenporary Contemporary Hospitality Industry Understand the current structure of hospitality industry. Analyse current scale, scope and diversity of hospitality industry. The hospitality industry employs seven percent of the working population. In terms of gross value added (GVA) the sector contributed £40.6bn to the UK economy in 2011 or 4.2 percent of the country’s total GVA. In 2012 there were 181,500 individual business sites operating across UK. Hospitality and tourism is one of the UK’s most diverse sectors all connected to service sector. Besides different size of operations and customers, there are different sub-sectors of the industry: * Pubs, bars and night clubs * Hotels, Hostels and B&B * Restaurants, Bistros, Cafes and Coffee shops * Casinos and Gambling * Take-Always and Mobile catering * Travel services * Tourist Services * Membership clubs * Contract catering * Hospitality services * Events * Visitor attractions According to State of the Nation Report 2013, in 2012 most of the hospitality businesses were private companies (59 %). Following 20 % were sole traders and remaining were mostly partnerships (15 %). Restaurants, hotels, pubs, bars and nightclubs represent the greatest number of businesses and equal 70% GVA. When measured by the number of employees, industry is predominately made up of small businesses; almost half employ less than five people and only one percent of businesses employ 100...
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...Tourism Business Environment This article is based on two countries with two different geographical locations and two different economies. I will be looking at are the UK and Malawi and how the travel and tourism business environment is run, with different types of organizations. Public organizations get their capital from local or central government and usually aim to provide a service. Examples include the national and regional tourist boards and some visitor attractions. In The UK funds for public sectors tourism organizations can come from many sources but a common one is usually from local councils and Department of Culture Media and Sport (DCMS). Visit Britain is a nation tourism agency and is funded by DCMS. One of Malawi’s agencies is Wilderness Safaris. Public organizations are judged by the number of visitors they’ve received/attracted rather than the financial success. Most organisations in the travel and tourism industry are privately owned. These organisations may be huge companies, such as British Airways, or small businesses. They usually aim to make a profit and are commercial companies. When they fail to make a profit over a period of time they are likely to cease trading. All theme parks, restaurants, tour operators and travel agents in the UK are privately owned. There are different types of private ownership, ranging from sole traders to public limited companies. The different organizations operate in geographically diverse regions. There are also private...
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... Title: 3 Introduction & Objectives 3 Definitions 5 Recognition 5 Measurement 6 Discussion 6 Revenue Recognition (IAS 18) 6 Property, Plant and Equipment (IAS 16) 8 Xerox Revenue Recognition Scandal 9 Recognition in the Annual Statements 10 Conclusion 13 Bibliography 14 Appendices 17 Appendix 1 – Standards from IASB 17 Appendix 2 – Proposed plan for FASB and IASB 18 Appendix 3 – TUI Travel Plc Annual Statement 21 Appendix 4 – Thomas Cook Annual Statement 27 Appendix 5 – PSA Peugeot Citroen Annual Statement 31 Appendix 6 – Daimler AG Annual Statement 37 Appendix 7 – Xerox Annual Statement 42 Title: Discuss and explore issues surrounding the recognition of elements in financial statements Introduction & Objectives Accounting has many elements to producing an annual statement each fiscal year; these different elements have regulations in which organisations have to abide by. Regulations have three categories; legislation, accounting standards and stock exchange regulations (Melville, 2008). Legislation can differ from country to country, which is the same for accounting standard board as each country has individually developed their own standards (Accounting Standards Board for the UK, also, International Accounting Standards Board that is trying to consolidate standards, which can be accepted globally). Attempts by theorist to create a single accounting theory that is accepted b all involved. Hendriksen (1970, p.1) describes...
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...2013 Investment Support and Promotion Agency of Turkey ©2013 Deloitte Türkiye. Member of Deloitte Touche Tohmatsu Limited Disclaimer Republic of Turkey Prime Ministry Investment Support and Promotion Agency (ISPAT) submits the information provided by third parties in good faith. ISPAT has no obligation to check and examine this information and takes no responsibility for any misstatement or false declaration. ISPAT does not guarantee the accuracy, currency, reliability, correctness or legality of any information provided by third parties. ISPAT accepts no responsibility for the content of any information, news or article in the document and cannot be considered as approving any opinion declared by third parties. ISPAT explicitly states that; it is not liable for any loss, negligence, tort or other damages caused by actions and agreements based on the information provided by third parties. Deloitte accepts no liability to any party who is shown or gains access to this document. The opinions expressed in this report are based on Deloitte Consulting’s judgment and analysis of key factors. However, the actual operation and results of the analyzed sector may differ from those projected herein. Deloitte does not warrant that actual results will be the same as the projected results. Neither Deloitte nor any individuals signing or associated with this report shall be required by reason of this report to give further consultation, to provide testimony or appear in ...
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...TAKING LEADERSHIP IN A DIGITAL ECONOMY BY TELSTRA CORPORATION LIMITED AND DELOITTE DIGITAL November 2012 deloittedigital.com.au telstra.com A NOTE FROM DAVID Consumers and businesses are rapidly embracing digital technology and this is redefining the traditional transaction model. We now have a new generation of globally connected consumers and businesses who behave very differently – and we must all adapt to these changes and take advantage of the new opportunities. By the end of the decade we will have connected just about every device to next generation networks, from smartphones and offices of the future, to educational resources and digital home appliances. The changes we are talking about are transformational. Everything, everyone and every place will be connected. This will make us more innovative and more competitive – and change the way we live and work for the better. The challenge ahead is how to best use the tremendous creativity, innovation and capability of Australians to participate in these new opportunities – whether it be m-commerce, Big Data, robotics or social media. Every part of our economy can benefit from this new era of connectivity. Our role, as Australian business leaders, is to help build a 21st century economy that is locally accessible and globally competitive. As a nation, we can lead the world and create positive change. David Thodey Chief Executive Officer Telstra 1 A NOTE FROM GIAM The world is changing. The internet has...
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...important role. Without an accountant, the organization cannot work effectively (role of accountant, 2013). Accounting is a special division of knowledge. Both the accounting system and the accountant provide a very useful service to the society. There are a lot of stuff can be done by an accountant. Firstly, an accountant does bookkeeping. They keep a systematic record of the transaction in the business to ensure the organization operation. Accountant also analyzed and review budgets and expenditures for their clients. A business man or a shareholder would like to know their profit or loss annually. It is very important to know a company financial position to plan for their future. For example, accountants will help the company to provide annual report...
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...An assessment of the implications for competition of a cap on auditors' liability July 2004 OFT741 1 1.1 EXECUTIVE SUMMARY This report contains the OFT's advice to Government on the implications for competition in the audit market of proposals to permit auditors to limit their liability by way of negotiated caps. The current liability position 1.2 At present auditors may not limit their liability for fault due to negligence or incompetence in audit work. Alongside regulation and reputation, liability acts as a discipline on audit quality in a context where shareholders and other third parties rely on information from an audit which is paid for by the company being audited. We are not aware of evidence suggesting that the courts in the UK have made, or are liable to make, excessive damages awards against auditors. Professional indemnity insurance is available, and LLP status – the chosen corporate form of many audit businesses – exists to protect partners' personal assets. The competition arguments 1.3 It has been argued that a cap on auditors' liability would however be procompetitive because it would lead to: • • • 1.4 a reduction in the barriers to entry and growth facing smaller audit firms the maintenance of competition between larger audit firms, including for non-audit work, and less risk of collapse of one of the Big Four. On the basis of the evidence available to us, however, none of these arguments appears compelling. First, the current liability...
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...Deloitte and Touche | Final Paper | | HR582 Managing Global Diversity | | Owner | 10/21/2010 | | Deloitte Diversity Audit Organizational Background: Deloitte is a staple in the financial accounting industry for over 100 years. In this time frame they have continued to revamp themselves to still remain relevant not only for their trade of accounting but developing its primary asset, their employees. Deloitte help set the standard after the crash with audits and regulations that led to more thorough accounting practices. Recognition for women and minorities is a huge initiative that has been driving a lot of their success into the 21st century. The investment in information technology would pay dividends to back up, store, and process electronic accounting data for Deloitte. The merger of the big 4 completion in 2002 the financial accounting industry will never be the same. PricewaterhouseCooper, Ernest & Young, KPMG, and Deloitte round out the big 4 audit firms. Deloitte is currently the largest of the big four by a narrow margin. All of the big four are among the top places to work (2009) nationally and in their respective headquarter locations. Since the 2000’s Deloitte has become an industry leader and model organization. The focus on recruiting the right talent to continue pushing the bar has been successful for Deloitte. Deloitte is striving to separate themselves from the big four and set the trends for the accounting industry. Criteria/...
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...Netflix case study CASE STUDY HOME ENTERTAINMENT Extended Diploma in Strategic Management & Leadership Units: U7 Strategic Marketing Management U12 Strategic Planning U13 Financial Principles and Techniques April 2013 CASE STUDY HOME ENTERTAINMENT Extended Diploma in Strategic Management & Leadership Units: U7 Strategic Marketing Management U12 Strategic Planning U13 Financial Principles and Techniques April 2013 Student’s Brief Scenario You are employed as a marketing consultant in the home entertainment sector. You have been asked by Netflix, Inc. to undertake a strategic audit in relation to the organisation’s: * core competencies * competitive advantage * value proposition You have also been asked to consider how Netflix, Inc. can remain competitive in the context of developments in technology, rising competition and changing consumer behaviour. Consideration should be given to the organisation’s financial position, its strategic risks and mitigating strategies to overcome these risks. Edited Extracts from Chartered Institute of Marketing (Case study: June 2011) Contents Introduction 4 Movie and TV programme licensing and distribution 5 Netflix, Inc 6 Netflix – advertising and marketing 7 Netflix’s competitors 7 Top ten movie download services 10 Data protection issues 10 The future for the industry 11 The future for Netflix 12 References 13 Home Entertainment Introduction Total...
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...Managing the Talent Crisis in Global Manufacturing Strategies to Attract and Engage Generation Y A Deloitte Research Global Manufacturing Study Table of Contents Introduction................................................................................... 1 The Talent Paradox in Global Manufacturing: Survival of the Skilled................................................................... 2 The Depleting Talent Pipeline in Global Manufacturing ............ 3 The Challenge and Opportunity of Talent Mangement in Emerging Markets......................................................................... 5 China: Plenty of oysters, few pearls ............................................. 5 Southeast Asia: Dangers of a short-term view ............................. 6 India: Fighting off the competition .............................................. 6 Latin America: Middle management blues, technical skills shortage .............................................................. 7 Eastern Europe: The perils of accelerating wages ........................ 7 Connecting to Generation Y ........................................................ 8 Characteristics of Generation Y ................................................... 8 New strategies aligning with the needs of Generation Y ............. 9 Shortcomings of current approaches to managing talent ......... 10 The Develop-Deploy-Connect talent management model .......... 11 What Does the Develop-Deploy-Connect Model Mean for...
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...Lending April 2015 This quarterly publication presents the Bank of England’s assessment of the latest trends in lending to the UK economy. It draws mainly on long-established official data sources, such as the existing monetary and other financial statistics collected by the Bank that cover all monetary financial institutions, and data collections established following the onset of the financial crisis. These data are supplemented by discussions between the major UK lenders and Bank staff, giving staff a better understanding of the business developments driving the figures, and this intelligence is reflected in the report.(1) The major UK lenders(2) are Banco Santander, Barclays, HSBC, Lloyds Banking Group, Nationwide and Royal Bank of Scotland and together they accounted for around 70% of the stock of lending to businesses, 75% of the stock of mortgage lending, and 50% of the stock of consumer credit (excluding student loans) at end-December 2014. The report also draws on intelligence gathered by the Bank’s network of Agents and from market contacts, as well as the results of other surveys including the Bank of England’s Bank Liabilities Survey and Credit Conditions Survey.(3) The focus of the report is on lending, but broader credit market developments, such as those relating to capital market issuance, are discussed where relevant. The report covers data and intelligence gathered up to end-March 2015. Unless stated otherwise, the data reported cover lending in both...
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...balance sheet value of the items may differ from the real value and this value is never adjusted by the changing of market and economy. For example, 10units of one item were purchased for $10 each. The price of this item today is $11 per unit. Therefore the inventory should appear on the balance sheet at $100 and not at $110. 1.2 Fair Value According to IFRS13, fair value is regarded as a scientifically true measurement concept. To be more specific, fair value is a market-based measurement; it is not an entity specific measurement. In other words, fair value is the price that the company will be received to sell assets or paid for transfer liabilities in an orderly transaction at the measurement date between market participants (Deloitte, 2015). When the company takes the fair value measurement, that company needs to determine the particular asset or liability and the principle market for that asset or liability. The entity also needs to consider the appropriate valuation techniques for...
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...PLAN 8 9. POTENTIAL STRATEGIC OPTIONS FOR VISIT BRITAIN 8 10. RECOMMENDATIONS WITH JUSTIFICATION OF THE CHOSEN STRATEGIC OPTIONS 9 11. MARKETING MIX 9 References 18 1. INTRODUCTION: As a marketing consultancy team, we have been asked to review the current marketing plan of Visit Britain that was put together by an inexperienced marketing team. Visit Britain is a large tourist organisation, whose aims is to increase inbound tourism in Great Britain and to improve Britain’s ranking in the eyes of international travellers but also to expand the tourism industry. (VisitBritain, 2013) This report will require a Marketing This audit will critically analyse the current plan, it will identify areas that needs improvement on the plan also recommending strategies and tactics that can help Visit Britain to achieve their objectives with justification. This report will explore the macro environment, the micro environment and the internal environment of visit Britain using PESTEL, SWOT, and 5 PORTAL FORCES Models. Few growth strategic options will also be recommended justifying one of the only one of the strategy then growth marketing mix will be outlined in support of the strategic options recommended. 2. SITUATIONAL ANALYSIS The first decade of the twenty first century has been a significantly difficult period for the tourism industry worldwide....
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