Posted: September 13th, 2017

Financial Reporting on the Internet

Paper, Order, or Assignment Requirements

 

 
answer the questions i the attachment in an essay format and use the case study and annual reports to answer the questions

 

Financial Reporting on the Internet

(Case study: IAG)

 

The internet is a good place to get information that is useful to you in your study of accounting. For example, you can find information about current events, professional accounting organizations, and specific companies that may support your study.

 

International Airlines Group “IAG” is one of the world’s largest airline groups with 464 aircraft flying to 243 destinations and carrying 77.3 million passengers each year. It is the third largest group in Europe and the sixth largest in the world, based on revenue.

 

Formed in January 2011, IAG is the parent company of British Airways, Iberia and Vueling. It is a Spanish registered company with shares traded on the London Stock Exchange and Spanish Stock Exchanges. The corporate head office for IAG is in London, UK.

 

IAG combines the leading airlines in the UK and Spain, enabling them to enhance their presence in the aviation market while retaining their individual brands and current operations. The airlines’ customers benefit from a larger combined network for both passengers and cargo and a greater ability to invest in new products and services through improved financial robustness.

 

The airline industry is moving gradually towards consolidation though some regulatory restrictions still prevail. IAG’s mission is to play its full role in future industry consolidation both on a regional and global scale.

Access the Nike home web page at: www.iairgroup.com. From IAG’s home page and then “The Company”, click on “FINANCIAL INFORMATION”, followed by “Reports and results”, then select the year 2013 to display and download the “Annual report and accounts” 2013 on Form PDF.

Note: the financial statements of IAG are available at:

http://www.iairgroup.com/phoenix.zhtml?c=240949&p=irol-reportsannual

Instructions Use the annual report and accounts of 2013 to answer the following questions:

 

  • What are IAG management strategies? And how do they achieve these strategies?

 

                                                                                                                                      [Marks 8]

  • Refer to IAG’s Annual Report. Identify the advantages of consolidating the airline financials? [Marks 8]
  • How did IAG strengthen the British airways?

[Marks  8]

  • How did IAG planned a dramatic transformation IBERIA?

[Marks  8]

  • How did IAG strengthen the European platform?

[Marks  8]

  • Explain the cooperate structure of IAG?

[Marks  8]

  • Referencing to the report, explain the following?
    1. What contractual obligations of IAG ?
    2. How much is the lease obligation for the operating lease and finance lease for 2013?
    3. GAAP has set certain criteria to consider the lease as capital “finance” lease explain them in details.

 

                                                                                                                                   [Marks 15]

  • In the annual report IAG mentioned that they measure certain asset and liabilities using fair value measurement, according to FASB there are three level hierarchy for the fair value measurement technique explain them? Mention example from the balance sheet for asset and liabilities that were measured at fair value for each level.                                                                                                                      [Marks  9]
  • According to ISAB, Debt investments are accounted either by the amortize cost or by fair value method. To identify the method used there is certain model. Please explain the model and its criteria.

                                                                                                                                        [Marks 8]

                                                                                                               

                                                                                                                                      

  • Write a memo, in no more than 200 words, explaining: (Hint: Explain and support your memo by suitable figures from the IAG annual report.)
  • According to IAS 36 on Impairment of Intangible Assets how do IAG account for impairment of intangible asset?
  • Who is responsible for estimating the useful lives of intangible assets?
  • What was the composition of identifiable and unidentifiable intangible assets reported by IAG 2013?
  • How much impairment did IAG report from the intangible assets?

                                                                                                                                      [Marks 20]

                                                                 [Total Marks (Words) = 100(1,900)]

 

In your answer, you should explain each point or inquire separately. Use the following headings (below) to make up the different sections of your work:

Cover The PT3 form (available on LMS)
Contents Title and contents page
TMA Financial Reporting on the Internet (Case study: Nike Inc)
References  Recorded according to the Harvard style – Available on LMS

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