Brooke Williams 12108296

Assessment One

ACCT11059

Brooke Williams4-8-2019

ContentsStep 1....................................................................................................................................................2

Step 2....................................................................................................................................................3

My blog..............................................................................................................................................3

My Moodle account profile...............................................................................................................3

Step 3....................................................................................................................................................4

Comments on others blogs................................................................................................................5

Top 3 blogs........................................................................................................................................5

Studiosity...........................................................................................................................................5

Step 4....................................................................................................................................................5

Step 5....................................................................................................................................................6

Step 6....................................................................................................................................................7

Feedback given..................................................................................................................................7

Received feedback.............................................................................................................................9

Step 1So, what really is accounting? By reading the introduction and chapter one I have realised accounting plays an important part within a business. It uses information to help connect businesses. Even though I have never studied accounting this unit seems to be an introductory that will help me gain an understanding of what accounting is, how it is used and why it is useful in a business.

As Martin discussed on his trip in Yeppoon, he saw multiple businesses ranging from hairdressers to butchery’s all of which would have keep accounts. This to me shows the relevance of accounting and puts it into an everyday perspective.

Something I learnt while reading this is around half of the CEOS of big listed companies in Australia have a background of accounting and even some directors of Australia’s listed companies have a background of accounting. Whilst getting to the end of chapter one I came across something familiar to me this was ‘Assets = Equity + (Revenue – Expenses) + Liabilities’ or ‘Assets+ Expenses = Equity + Revenue + Liabilities’. These formula where taught to me in high school in a Business management class and never did I think I would actually come across them again.

Something I found interesting while reading this was the word debt is actually a Latin word which means to owe. The word credit is also a Latin word meaning to believe or to entrust.

My understanding of what accounting is after reading these two chapters is accounting records some pieces of what is going on in the firm.

Some questions that I have are why is accounting actually so important to a business? Why are most businesses in Australia and New Zealand sole traders? What is a proprietorship?

Step 2My blog - https://wordpress.com/view/brookeaccounting.home.blog

My Moodle account profile

Step 3The company I was given is called Air China, which is one of China’s largest airlines. Air China International Corporation was established in 1988. The logo on the tail of the plane represents a phoenix which is an ancient Chinese symbol for luck and happiness which is pretty ironic for an

airline. It has hubs in Beijing, Chengdu and Shanghai which flies to more than 70 destinations within China and to destinations in Asia, Australia, Europe, The Middle East and The United States.

For step 3 it involves identifying the company in this case Air China and analysing the company’s annual reports. By doing this it will show a thorough understanding of what Air China are involved in as well as understanding key accounting aspects that are involved within this company. Air China is a Chinese airline who have hubs in Beijing, Chengdu and Shanghai which fly to destinations in Asia, Australia, Europe, The Middle East and The United States.

When looking at Air Chinas statements of equity the opening balance has increased over the four years and so did the profit. Although the other comprehensive income is up and down over the 4 years. The closing balance still increases over the years. Why does the closing balance increase eve though the comprehensive income goes up and down over the years?

When looking at Air Chinas balance sheets it shows you the assets both current and non-current. I have identified that the property plant and equipment has increased over the four years. This could be due to better quality air equipment or higher consumer demand.

Air Chinas summary of operating data displays that the company’s load is decreasing international and to Hong Kong, Macau and TaiwanCould this be why???

Images retrieved from:https://www.tripadvisor.com.au/Airline_Review-d8729000-Reviews-Air-China

The operating expenses of air china include jet fuel costs, employee compensation costs, depreciation and amortisation, take-off, landing and depot charges, air craft and engine operating lease expense, aircraft maintenance, repair and overhaul costs, air catering charges, other operating lease expenses, other flight operation expenses, selling and marketing expenses and finally general and administrative expenses. After further investigation to understand this part I realised that the this could be due to the amount of passenger aircraft Air China was flying.

By 2018 the company operated a fleet of 396 aircraft in total these ranging from airbus’s to Boeings. When comparing this to 2016 the company operated a fleet of 360 aircraft in total. This could explain why there is an increase in jet fuel costs, take-off, landing depot charges, aircraft and engine operating lease expense, aircraft maintenance, repair and overhaul costs and air catering charges.

Comments on others blogs

Comment left on: https://accountingprogress.home.blog/2019/03/25/globe-international-initial-thoughts/comment-page-1/?unapproved=11&moderation-hash=3c6159ef4e65f0379ff42f253757dba2#comment-11

Comment left on:https://shaniamacnicol.wixsite.com/acct11059/post/assignment-heebie-jeebies

Top 3 blogsMy top three blogs would have to be:

1. https://shaniamacnicol.wixsite.com/acct11059

This is because her blogs are interesting and is not only set out amazing it includes eye-catching headings which draw your attention to the blog posts and make you want to read what they are about.

2. https://cindypanugaling.wixsite.com/blog

This is because the design of it draws my attention especially the moving background.

3. https://jameshannah.wixsite.com/thestudent

This is because you can tell a lot of time has been spent in creating this blog.

Studiosity Studiosity is a great tool allowing your assessment to be reviewed. I like how it gives you the option to add focus areas. This allows them to look at things that you specifically might be concerned about.

Step 4 Attached in a separate document

D:\ACCOUNTING\Air China Financial Statements.xls

Step 5 Chapter 2:

Chapter 2 is about people who have an interest in understanding the economic and business realities of a firm. This chapter has been split into 4 parts these being 2.1 rules of the game, which have subcategories of growing regulation, GAAP which stands for generally accepted accounting principles which are the rules accounts need to follow when preparing financial statements, accounting standards and whether to report or not. 2.2 you can’t have a rue for everything,2.3 accrual accounting and 2.4 quality of information.

- “They can vary from country to country and only apply when we are preparing financial statements to go to certain outside parties” I didn’t quite understand this sentence. What does it mean by varies by country to outside parties?

- If accounting standards are legally binding for companies, why do they not apply to everyone?

- A key concept I found is that only companies who prepare and issue general-purpose financial statements need to comply with accounting rules.

Chapter 3:

Chapter 3 informs the reader that there are four general purpose financial statements which are the balance sheet, income statement, income statement, statement of equity and statement of cash flow. Like chapter 2, chapter 3 is also divided into sections these being 3.1 a view of business at rest, 3.2 business on the move, 3.3 making sense of financial statements and 3.4 the value of anything.

- In the not just one company part of chapter 3 I found that companies can provide two types of balance sheets a consolidated one and a company one.

- There are two key financial statements business prepare these being the balance sheet and the income statement

- How to work out dividends: Dividends (d) = Operating cash flow (C) – Capital outlays (I) + Net cash flow from debt owners (F)

- What is the purpose of footnotes?

Step 6 Feedback given

Received feedback