Managerial Accounting Retain Sales and Corporate

Question: Discuss about theManagerial Accounting for Retain Sales and Corporate. Answer: Introduction: Broad Investments Limited, an Australian based firm focuses mainly on information technology and telephony business. The main segments in the company include share trades and investments, retain sales and corporate. The firm also engages in providing bulk apple products as their sales of business, at times they deal with the government and educational sector (BR Ltd website). Broad Investment also offers sales of Apple oriented peripherals and accessories. Hence, their share trading and investments segments tend to involve trading and investing in the Australian Security Exchange (ASX) in the listed entities. The retail sales segment in the firm include sale of Apple products and its consumables, as well as accessories for retail customers, the education sector and to business customers (BR Ltd website). It also has some subsidiaries firms which are Broad IP Pty Ltd, Glovebox Pty Ltd and Monsta Industries Unit Trust. The firms primary vision is to be the information technology and telephony services in Australia. Hence, they have the vision of conquering the local Australian market in regards to information technology and expand their operations in other countries that are within the Australian localities. They also tend to have some corporate governance goals for the organization, they include; Structuring their board regularly for the purpose of adding value in the company. They also aim at laying down a solid foundation that manages and oversights their operations in regards to the adoption of recommendation that suits the company operations and the practical aspects that adopt the recommendations. They also aim at promoting ethical and responsible decision making in regards to compliance with the recommendations. Recognizing and managing risk. Ensuring that there is fair remuneration and responsibility. Respecting the rights of the shareholders. Ensuring that there is timely and balanced disclosure. There is also safeguarding of integrity in regards to the financial reports. In regards to the method which the top five executives are being listed, it is through introduction. Hence, this ensures that the method of listing that is available in these companies work in a way that it is optional for the executives to raise additional cash through sell of their securities for the purpose of increasing the share value, and offer potential exit method allows exit strategy for the executive (Dimeo et al, 2014). Hence, this tends to be an effective strategy that develops some form of independency and positive culture in the business. In regards to the companys performance we will compare their business performance as of 2011 and 2013 share price chart. Consider the share price chart below: Date Closing price Amount invested (millions) Shares bought 1/1/2011 $185.20 $ 1,000 5.3996 1/6/2011 $181.99 $1,000 5.4948 1/1/2012 $191.33 $1,000 5.2320 1/6/2012 $186.23 $1,000 5.3697 1/1/2013 $190.77 $1,000 5.2419 1/6/2013 $191.53 $1,000 5.2211 From the above analysis, it becomes certain that over the years the firm has experienced different periods of recessions in regards to share index shown. According to Moran (2011) some of the reasons that affects firms shares score card emerges from fluctuations and uncertainties that are seen in the business. Therefore, VadI (2016) asserts that the different change available in the economy tends to be reasons as to why there exist these fluctuations. Hence, these authors arguments tend to explain as to why there isnt a constant record in regards to shares bought. To even demonstrate further perhaps I should include the companys financial liabilities. Financial liabilities 2014 2013 2012 Trade and other payables 1,128,239 951,158 857,675 Borrowing related parties 100,000 - 22,000 Total financial liabilities 1,228,239 951,158 879,675 It is also evident from this table that due to the different economic uncertainties available, it is expected that investors will consider this factors before they decide on buying a single share in the company. On the other hand, in regards to the annual report and the level of remuneration the revenue as of the ordinary activities were perceived to decrease by 73% compared to the previous financial year which was $0.370 million compared to $1.391 million (Kay Smith, 2015). The decrease experienced at this time was mainly attributed by loss of revenue as a result of discontinuation of the VOIP and telecommunication services. Still, in regards to the remaining part of the business the company is still developing the cash flow. Hence, it isnt expected that the levels of profits will hike during development (Bernasconi-Osterwalder Johnson, 2011. Therefore, it will take some time before the business picks up and profits start emerging as expected. In regards to remuneration of key management personnel of Broad Investment Limited as of 2014 is as shown below: Executive Director Cash salary and fees Cash bonus Super-annuation Total Vaz Hovanessian 240,000 - - 240,000 Non-executive Director Johannes Scholtz 20,000 20,000 Neil Gibson 20,000 20,000 Total paid 280,000 280,000 Executives Michael Saliba 137,615 12,385 150,000 Andrew Bray 48,117 48,117 Total paid to executives 185,732 12,385 198,117 The above table tends to show the remuneration that exists in the company as of 2014 till present date. Lastly, outside reports tend to perceive that the organization is succeeding in their operations while it is expected that their profit margins grow overtime. But, in my case I believe thats not the case this is because of the emerging uncertainties that develop in their industry. For instance, we cant expect based on the previous year annual report that the firm through its strategy will attain their levels of corporate goals. Therefore, there is need of coming up with strategic management ways that could handle the issues of management (Kay Smith, 2015). This is because of the decreased amounts in terms of assets available. The only significant recommendation that I could provide is that they should seek a new business model to enhance their operation, and create some partnership with other firms to lower their risk levels. In conclusion, it becomes certain that the level of the firm work efficiently ongoing concern (Keightley, 2008). As a result, there is sufficient cash that continues to meet the liabilities as when they fall due, there is also raising of sufficient equity fund which share. In future, we hope that their operation cash flow will effectively support their ongoing operations (Stowell, 2010). References Keightley, M. P. (2008).Essays in human capital investment. Moran, T. H. (2011).Foreign direct investment and development: launching a second generation of policy research : avoiding the mistakes of the first, reevaluating policies for developed and developing countries. Washington, D.C., Peterson Institute for International Economics. Stowell, D. (2010).An introduction to investment banks, hedge funds, and private equity: the new paradigm. Burlington, MA, Academic Press/Elsevier. Rognlie, M., Shleifer, A., Simsek, A. (2014).Investment hangover and the Great Recession. VadI, V. (2016).Analogies in international investment law and arbitration. Rice, M., Dimeo, R. A., Porter, M. (2012).Nonprofit asset management effective investment strategies and oversight. Hoboken, NJ, Wiley. Kay, F., Smith, A. E. (2015).The Good Retirement Guide 2015 Everything You Need to Know about Health, Property, Investment, Leisure, Work, Pensions and Tax. London, Kogan Page, Limited. Bernasconi-Osterwalder, N., Johnson, L. (2011).International investment law and sustainable development key cases from 2000-2010. Winnipeg, Man, International Institute for Sustainable Development.