This is a presentation i did for the subjects Accounting & Finance Principles. It is a financial analysis of Qantas Airways. A quite beginner level analysis since done in my first year first semester of University

1. Financial Statements Waleed Zafar & Alex AFW1000 Tutor: Lau FookSeng Monash University

2. Introduction What are the financial statements? They are formal records of the financial activities of a business, person or other entity

3. Introduction They consist of four key statements: Balance Sheet Income Statements Cash Flow Statements Statements of Shareholder’s equity Users can Make Economic Decisions

4. Introduction Creditors/Lenders Investors Who are the users of financial statements? Managers Tax Authorities

5. Introduction Our chosen company is Qantas Airways It is Australia’s largest airline We have chosen to do the analysis of the 2008 financial reports

6. Responsibility of Senior Managements While issuing the financial statements the senior management of Qantas need to make sure that: The reports are in accordance with Australian Accounting Standards (AASB) and the Corporations Act 2001 Maintaining internal control while preparation and fair presentation of the reports

7. Responsibility of Senior Management They also need to make sure that the financial statements are free from material misstatement whether due to fraud or error They also need to make sure that the financial statements and the notes complies with the International Financial Reporting Standards.

8. Auditors Who are auditors? A person who evaluate controls and attest to the fairness of the financial statements

9. Auditors The responsibilities of the auditors of Qantas are assisting the Board in fulfilling its corporate governance responsibilities The reliability and integrity of financial information Compliance with legal and regulatory obligations

10. Auditors compliance by all employees with all policies including the Qantas Code of Conduct & Ethics the integrity of the Qantas Group’s internal control framework

11. Asset Management Net Assets can be funded by either debt or equity In the case of Qantas, this can identified by using the following equation:

12. Asset Management This equation shows the finance and profitability of the company It shows what proportion of total assets is financed by equity, and hence what proportion is financed by loans and non-equity shares. A low equity to assets ratio means much of the business is financed by loans, or non-equity shares, whereas a high equity to assets ratio means that most or all of the long-term capital is equity By using the formula, we can see that Qantas has around 29% of its total assets funded by equity. This shows that the company has an average profitability and finance. Since the figures show an average loans and non equity shares

13. Conclusion In order to become a successful airline in the future, Qantas needs to ensure that: quality of the airline service are well maintain, and continuously improving. continue sustainability reporting/corporate social responsibility to benefit the society deliver “the best” to its shareholders manage risk efficiently conduct operation in ethical way

14. Thank You!