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Otherwise the accounting treatment was accurate right, I got so confused when it stated tools and equipments. I was thinking at first what if this should be treated as ppe because they mentioned professional builders . Too much time passed on this one
@jazzy. I mentioned similar points except for provision, I did not write anything on that. What did you mention for inventory?
Hi guys.
I was wondering if we are eligible for MSC if we have completed SBL and P2 instead of SBR? Or we have to take SBR to be eligible for the MSC program?Thank you @trephena for your efforts and your time 🙂
When writing about the KPIs should I not compare it with its competitor due to the word limit?
@trephena While we are doing the swot, is it more preferable to mention how company is using their strengths/opportunities in the swot itsslef? I’ am not sure if swot here is all about just plainly mentioning the companys strength/weakness/opportunity/threat or its about showing how they are utilising/overcoming it?
Thanks a lot @trephena, but just to be clear, should I include the KPIs in SWOT or write it separately as a separate heading apart from the SWOT analysis?
I have just been reading all this while that I feel I should start writing now!
@trephena said:
I@abolorelegacy -you asked me to be candid so I shall be. Although a 3 year review is better IMO, that first paragraph of the first version is doomed! You just do not overwhelm the reader with percentages or they drown in a sea of numbers! Remember too the marker is not blind so they can ‘read’ the trend from the graph (as long as you show it with the earliest year on the left and the latest year on the right)Strip out all those unnecessary numbers first. I think you can generally go for a 3 year period review (rather than year by year) but if something significant happened in a particular year then bring it in.
So you might start with 2013 and comment something like ” operating margin which slipped slightly back in 2014 has improved by 3.3% over the whole period. The market fall in the price of oil being a major input cost has contributed to this (reference required) [ give more reasons if you can + references]. This turning point follows a 3 year decline in profitability [ I don’t know what decline in growth you are really referring to as it is not clear and all those numbers do not help! – decline in passenger volumes? Revenue? Operating margin?so a need to express yourself clearly.
Next bit: although Ryanair outperformed Easyjet in terms of higher operating margins overall, with EJ struggling previously to achieve a double digit operating margin, EJ has experienced steady growth over the 3 year period with an OM of 14.7% in 2015 (an improvement of x% since 2012) mainly due to…. (referenced reasons)
As you will note I am using numbers sparingly to HIGHLIGHT key points That way the reader has a much better picture of what has been significant and does not lose sight of what you are trying to get across
Start Part 3 with your models and KPIs in the business analysis and then link the financial/ratio analysis to these. Discuss a ratio for main company, then do comparison as above with other company -you can usually show both companies’ ratios on same graph or chart.
I ‘ am seriously your fan, I follow all your comments!
Can you please please give one example on how could we use the KPIs and where do we put that in?
@hammadahmedqureshi said:
@darkangel5As pensions and operating lease are obligations of the company, so while calculating gearing ration, you may add these to loans and other debts. This will increase gearing.
Regards,
Hammad Ahmed Qureshi – OBU Registered Mentor.Thank you 🙂
@asalman1 said:
Thank you for the prompt reply. I have chose British Airways. What you think should be the best competitor ? any suggestion? I looked Virgin Atlantic but they dont have three years annual report. Every company which i choose dont have annual reports showing on their website 🙁I have chosen KLM as BA’s comparator
Thank you sir @Hammad Ahmed, Can you please tell me how operating lease and pensions affect the gearing levels?
@trephena, thanks to you! and other mentors who are doing their best in helping us in this journey 🙂
I’ am grateful to you for your help..
Yes @kann23 , if you are submitting for period 32 then you have to select your company from the given industry sectors.
I’ll quote what trephena has mentioned:
@trephena said:
The industry sectors for P32 are:– pharmaceutical companies or those in biotechnology
– mobile telecommunications
– air transport
Personally I do not recommend doing a T15 on the latter (the cash management and working capital element of airline operations is VERY complex) and suggest that a T15 for any of these is NOT a soft option.
Other topics are unaffected so as always I recommend T17 on the basis that we have a proven track record for our students using the T17 forum and achieving great results.
And also check this pdf file issued by learning luminairum which gives a good insight to the industry sectors!
https://learningluminarium.com/wp-content/uploads/2015/12/Topic-8-Three-New-Industries.pdfYou could also look at this page for more details!
https://opentuition.com/topic/topic-8-new-rules-as-of-may-2016-submission/
Hello everybody!
Are the air carriers suppose to purchase airport slots from the country they belong?
For example KLM want to land or take off in/from Schipol airport, does it mean it have to purchase a pair of airport slots? Now if they can’t utilise a minimum of 80% they can sell the slots to another carrier. What advantage do they have on selling other than increasing their cash flows? And yes no longer an intangible asset so no amortisation cost!
This is pretty interesting but i’ am not sure if i’ am going on the right track 🙁and oh also how does season affect airport slots?
Dear all,
Should I use passenger load factor as one of the ratios for my airlines analysis or I could just mention about it when discussing about passenger yield?
Best regards
@trephena, I ‘am really confused as to whether its necessary to do the analysis on consolidated financial statements for an A or just the company’s could still help me achieve that?
Please help..Best regards
@trephena, Could we still aim for an A grade if we base our analysis on unconsolidated financial statements of a group company? For example can I only use KLM’s financial statements and compare it with British airways solely?
For calculating the ratios are we suppose to take the amounts from annual report?
Hi,
Just came across this from British Airways annual report 2014 Pg13
“Corporate Governance
As the shares of the Company are not listed, it is not required to comply with the UK Corporate Governance Code. However, as the Company
continues to be an issuer of listed debt it remains subject to certain provisions of the Companies Act 2006, Listing Rules and the Disclosure and
Transparency Rules. In order to comply with these provisions, certain information about the Company’s corporate governance is detailed in this report.”Can I still take it as a competitor with KLM, and vice versa?
@Trephena,Thank you and God bless you!
@trephena
Thank you, I can’t express in words how much I appreciate your efforts in giving such detailed explanations and precise insight 🙂Lol @ the vanity project 😀 😀 But you are right!
Umm so if I chose KLM, what competitor will suit best?
Thanks again 😀