Running head: FINANCIAL REPORT 1

Financial report

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FINANCIAL REPORT 2

INTRODUCTION

The new project of setting up a new smartphone to replace the old smartphone is an

attractive project to the company. The following tools can be used by the company for an

appropriate recommendation;

 The Wrike project tool; This is a project management tool that goes beyond traditional or

old fashion tasks and project management. The tool is very vital in projecting new

models of technology. Henceforth it is applicable in the management of the new phone.

 The Trello tool; This tool provides a varying list of lists about the different uses and

differences between the existing smartphone and the new smartphone.

 The base camp tool; This manages project group undertakings and client work which is

very for a new project that cuts across.

 The share point tool; The tool enables team collaboration and management of the product

software tools.

 The Podio tool; This is also a project management software that enables efficient decision

making.

The key features of the objection and appeal process against the commissioner's decision are the

type of residence, the financial year, and the type of tax levied among others. The appeal is to be

filled 30 days within the date of notice of filing the returns. The appeal is majorly centered on

finding a solution to the problems about the filing of returns and any un compliance in the whole

process. It also arises due to disagreements in the whole taxation process. The person who

disagrees with the commissioner appeals to the tribunal for reconciliation. The orders that are

appealable are; orders passed by the commissioner of taxes; orders passed by jurisdictions.
FINANCIAL REPORT 3

Steps for filing an appeal.

The following features are required to file an appeal:

 Two copies of the order appealed against with an additional copy.

 Two copies of the assessing officers, the copies in total two of grounds of appeal earlier

submitted before the authority.

 Two copies of the statement of facts provided before the CIT.

 Two copies of assessment order in a case where the appeal is against penalty order.

 Two copies of the directions of the joint commissioner are also required.

All the required steps are essential in completing the appeal process. The process goes through

the claim of the appeal that emphasizes that the given taxes incurred are not true or were untruly

calculated and then the evidence of the claim is supposed to be submitted to the required firm,

this is in form of the people that computed the tax that is being claimed. The documents showing

the difference in the claims that which is true and that which is not true. These documents are

also that of the accountants or the different financial statements, receipts among others. The last

detail is the warrant issued that connects the claim and the evidence of the claim.

Importance of business economics.

Business economics helps in business planning whereby managers of businesses look at

costs and revenue got to look for possible solutions to the future of their business entities; this is

also beneficial to the making of the business budgets in terms of the costs involved in producing

commodities and possible revenue to cater for all production costs; these are determined by the

level of costs and revenue in the past fiscal years.

FINANCIAL REPORT 4

Business economics is also helpful in cost control; businesses use costs and revenues

incurred in past fiscal years to cater for future periods of trade; this also helps in managing

budgets such that the company does not go past allocated costs originally planned for. Managers

are advised to follow the guidelines allocated in the planning period, what goes beyond the

planned expenditure should be neglected in the planning process.

Business economics is also useful in demand forecasting; this is the future trend of

customers in the business entity. Planning for future demand enables the business to allocate the

expected forecasted revenue it expects from the business. Managers must allocate more costs and

resources to departments with a high demand which in the long run increases the company's

future revenue. The vice versa is also true.

Business economics is useful in the coordination process of business activities. Different

departments are allocated activities according to the costs and revenues expected; the two

determine where to allocate more resources for example in the sales department or any other that

requires urgent input. The activities of the business are also allocated to reduce the cost and there

needs to be a look at cost-sharing in the business.

Business economics is also helpful in the business organization of the business. The

organization is organized according to the costs and revenues earned by the business. Cost-

sharing makes it possible for the business to divide the business between who to collect revenue

from the customers, who to look for customers, who to account for all the earned money in the

business, and who to procure the required items for production among others.

Business economics is also helpful in the making of business policies; the policies of the

business are decided after certain factors are considered; for instance, a business that earns a lot
FINANCIAL REPORT 5

of revenue in a year looks at increasing production in that product that has made much money,

activities that make low money are reduced in the production costs; this is also important in

reducing costs in the future.

Business economics is also helpful in profit planning and control; this is essential as more

revenue means an increase in profits that leads to major decisions of increasing investment in

those businesses. The profits are also used effectively to grow the organization and the business

at large. Business predictions are also done in the business by looking at the costs and revenue;

this is important as it helps to know the future of the business entity and know where to invest.

The roles of financial statements.

Financial statements are critical for users to take effective decisions in many ways as follows:

The income statement enables companies to know their profit and loss margins and also

the nature of trends in sales and expenses is known.

The income statement further enables companies to establish shares with the public.

Public investors can tell whether a company is doing a profit or loss (Srinivasan, 1999).

The balance sheet enables companies to establish liquidity and debt ratios in the business,

This enables a company to know whether it should apply for more loans. This further is required

by banks and credit facilities to determine whether the business should be lent more cash.

Cash flows also enable the business to determine cash at hand and spent and the nature of

flow in the business.

The primary users of the statements can assess the company's prospects for the future net

cash flows (Hisrick, 2002).

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The business entity concept is one of the accounting concepts that emphasize that the financial

transactions of a business should be separated from that of its owner, for example; if a director

buys extra land at 1000$ to the business, this is a liability that the business ought to pay and for

the owner its an asset. This in the end enables an easy compilation of taxes

Easy auditing of the firm and easy preparation of financial statements, the money measurement

concept states that only transactions that can be expressed in terms of money are recorded in

accounting. Intangible services are not; for example:

 Skill level of employees

 Customer care level

 Administrative potential in the company

All the financial statements are required as discussed below;

The statement of financial position or the balance sheet states assets= capital plus liabilities. This

shows the financial position of the company-

Current assets are; expected to be realized in the entity's normal operating cycle, held for

trading, and expected to be realized in twelve months of cash equivalents plus cash while

liabilities are only the opposite and to be settled in twelve months.

The statement of profit and loss and other comprehensive income establishes the financial

performance of the organization. This includes all sales less all expenses incurred henceforth

shows revenue, gains or losses, finance costs, tax expenses, gains on property revaluation among

others
FINANCIAL REPORT 7

Statement of cash flows that shows cash inflows and cash outflows inform of operations,

investment and financing. These are all in the reporting period.

The statement of changes in equity according to the IAS 1 is as follows:

Total comprehensive income showing noncontrolling interests, reconciliations like a bank.

The company can use FIFO- first in first out method which assumes that the first goods are the

first goods sold assuming all goods are sold or the company sells goods. This sort of method

minimizes writing off,

 Minimizes inflation costs

 Minimizes clarity errors

 Minimizes inconsistent prices

 They help in making taxation decisions to establish real assets of the company and net

losses or profits

 They help in union bargaining finding out whether labor is paid a convenient wage for

their work rendered.

 They help to make uniform investment decisions

 They help financial institutions in making credit decisions

 Establishing whether a firm is making profits or losses

 Enable payment of taxes

 Establish liquidity to find out whether a company has a working capital

 Establish the number of loans to get

 As a labor negotiator would use the income statement

 To advise the management on the way forward for the company

FINANCIAL REPORT 8

 Provide improvisions on weak internal controls

 Perform reconciliations for all the financial statements

 Monitor compliance

This concept states that financial statements are prepared on the assumption that a business will

remain in operation in future periods.

RESULTS OF SHOWN IN THE REPORT

Annual General Meeting Flight Centre Travel Group ASX: FLT I October 20, 2021, 2 Today's

Schedule Chairman's Address - Gary Smith MD's Address - Graham Turner Resolutions General

Questions Chairman's Address 4 FY21: Highlights Introduction Recovery gaining momentum –

01, particularly in USA & corporate sector • Sales revenue increased month-on-month – record

COVID-period result in June 2021 • Rapid leisure & corporate recovery in USA late in Q4-21 •

Corporate transaction numbers (tickets) at c.50% of pre-COVID levels (TTV circa 40%) Trading

conditions generally 02 improving during FY21

• Vaccination programs gaining momentum globally

• Travel restrictions being relaxed/removed in key markets

• Experiencing strong & immediate rebounds after restrictions are lifted 03 Investing to

win market-share

• Multi-million-dollar pandemic-period investments in platforms, products & people to

capitalize on market-share opportunities

• Headlined by game-changing new FCM & Corporate Traveller platforms Successfully

executing key 04 corporate & leisure strategies

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• Corporate business “Growing to Win” – circa 100% client retention in FCM + $US1.4bn

pipeline of new accounts won during FY21

• Increasing leisure market share &/or profitability in key markets through enhanced multi-

channel offerings (new growth model) alongside streamlined shop networks Proactive

capital management 05 strategy

• Refinanced bank debt with extended covenant relief

• Issued $AU400m convertible bond to extend maturity profile Ready to capitalize on

major travel 06 industry lift-off

• Targeting a return to leisure & corporate profitability as conditions improve

• The significant upside for leisure businesses as travel resumes

• Heavy earnings leverage to markets with positive short-term outlooks 5 $m FY21 FY20

Mvmt Group TTV 3,945 15,303 (11,358) Operating revenue 396 1,897 (1,501) Total

revenue 396 1,897 (1,501) FV gain on change in control - (3) 3 Other income 280 197 83

Share of JV/Associates 17 (5) 23 Employee benefits (810) (1,491) 681 Marketing

expense (25) (170) 145 Tour & hotel operations (2) (130) 128 D&A (138) (231) 93

Finance costs (37) (38) 1 Impairment (36) (217) 181 Other expenses (247) (657) 410

PBT (602) (849) 247 Underlying PBT (507) (509) 2 EPS (cents) (217.5) (552.2) 334.7

Margins Revenue margin 10.04% 12.40% (236 bps) Underlying cost margin (32.77%)

(16.11%) (1,666 bps) Underlying PBT margin (12.85%) (3.33)% (952 bps) FY21: Profit

& loss 6 FY21: Recovery gaining momentum during Q4 ANZ

• ANZ Leisure Q4-21 TTV was 115% of 1H-21 Leisure TTV & more than triple the Q1-21

contribution.
FINANCIAL REPORT 10

• ANZ Corporate Q4-21 TTV was 97% of H1-21 TTV & more than double Q1- 21

contribution. EMEA • Corporate recovery building during Q4- 21.

• June 2021 monthly corporate TTV 47% higher than April 2021.

• Strong recovery in Europe – June 2021 TTV more than double April 2021 TTV.

Americas

• Strong TTV rebound late in the year.

• June 2021 TTV is more than 2.5x the average monthly TTV contribution during 1H-21.

• USA Q4-21 TTV exceeded 1H-21 in both leisure & corporate.

• 22.6% monthly TTV CAGR in the US during 2H-21. 7 Highlights

• 99 Bikes (retail network) + ATA (wholesaler)

• $54m profit before tax for FY21, up from $18m during FY20

• Group sales increased to $333m (FY20: $200m)

• Large focus on e-bikes – popular, big-ticket items

• NZ expansion – 6 shops + 2 more sets to open (Auckland, Rotorua)

• High level of employee ownership

• Based on the FLT business model Pedal Group: Positive growth cycle 8 Strong liquidity

position - September 21.

All figures presented are unaudited management accounts as of 30 September 2021. Key Points -

Banks have a 1:1 cash to debt liquidity covenant (including client cash), totaling A$565m,

including GBP115m CCFF borrowings which mature in March 2022. No other covenants apply

until Dec 2022. - Retail and corporate debtors and override debtors are shown gross provision for

doubtful debts of $34m and $30m respectively. - Cash and investment include client cash of
FINANCIAL REPORT 11

$335m. Liquidity position a) Working capital assets (excl. cash and investments) b) Working

capital liabilities (excl. client creditors) c) Represents client funds owed to suppliers included in

total available liquidity as of 30 September 2021 As of 30 September 2021 $m Cash and

investments 1,211 Working capital assets (excl. cash and investments) 507 a Working capital

liabilities (excl. client creditors) (522) b Client creditor liability (405) c Total liquidity 791 As at

30 September 2021 $m Retail and corporate debtors 298 Trade and other receivables 31 Override

debtors 66 Accrued revenue 10 Prepayments 26 Other 76 Working capital assets (excl. cash) 507

As at 30 September 2021 $m Trade creditors 261 Accrued expenses 123 Revenue constraint 13

Employee benefits provision 75 Deferred revenue 39 Other 11 Working capital liabilities (excl.

client creditors) 522 9 Prioritising long-term success

• Investing in key growth drivers, while maintaining a tight rein on costs

• Initial focus on costs & liquidity before focusing on growth as conditions stabilized Deploying

game-changing new corporate technology to enhance an already compelling customer offering

• Headlined by new FCM Platform & Melon products

• New digital platforms designed "with customers for the post-COVID world" Strengthening the

omnichannel leisure network as part of a cost-effective new growth model

• Investment in e-commerce, B2B (independent contractor) & call center models to complement

the global shop network

• Rapid online market-share growth in Australia in the domestic-only trading environment during

FY21 FY21: Investing to win market-share 10 Cross Hotels & Resorts: Seven-property master

franchise agreement in place in Japan Click to add text

FINANCIAL REPORT 12

• First property now open for business: Away Okinawa Kouri Island Resort 11 Corporate

business growing to win

• Strong return on “grow to win” investments – $US1.4b pipeline in new accounts won (circa

70% to trade in the Americas & EMEA) with 98.5% client retention in FCM

• Increased market share & foundations in place for further organic growth

• Approximately $US900m currently in implementation (not yet trading in all countries/solutions

design phase) Leisure transformation

• Structural changes completed – lower cost base

• Positioned for recovery

• Early evidence that strategies are working – Australian market-share growth, US profit &

productivity recovery Delivering a widest range of content for customers

• Sourced from GDSs, Online Booking Tools & aggregation partners

Working closely with GDSs & 17 key airline partners on distribution roadmap FY21:

Successfully executing key strategies 12 Healthy liquidity position. Has allowed FLT to weather

the COVID challenge. Key assets-maintained Brand & geographic diversity. Large presence in

both the leisure & corporate sectors. Broad geographic footprint with significant leverage to

Americas & EMEA – markets that are open for business People. Strong workforce of expert

travel advisors retained. Likely to play a crucial role in more complex travel environment post-

COVID

The future: Well-placed for industry rebound 13 Enhanced focus on an area that is

important to our company, our people & our stakeholders ESG: Building on our credentials. 1st
FINANCIAL REPORT 13

sustainability report released during FY21& available on fctgl.com. Followed an internal

stocktake of all programs offered globally in this important area. Internal ESG group formed

with senior leadership representation to further embed ESG considerations in the business, set

strategies & targets. Currently recruiting an ESG/sustainability officer Outlook Graham Turner

15 Experienced global leadership team Strong management group with a long history in the

business Graham “Skroo” Turner Global Managing Director and CEO 40 years at Flight Centre

Co-founder of Flight Centre, with nearly 50 years’ experience in the travel industry Chris

Galanty Corporate Chief Executive Officer 24 years at Flight Centre successfully guided the UK

business through GFC and Brexit. Formerly head of Flight Centre’s EMEA business Melanie

Waters-Ryan Leisure Chief Executive Officer. 34 years at Flight Centre Held senior

management roles during major global travel and tourism shocks during past 20 years Group

COO for 8 years Adam Campbell Chief Financial Officer 15 years at Flight Centre in Australian

and global roles 6 years as CFO. 25 years+ senior finance experience James Kavanagh Managing

Director Australia. 24 years industry experience, including 17 years at Flight Centre. Strong

background in corporate travel International experience Charlene Leiss Managing Director The

Americas. 25 years industry experience, including 14 years at Flight Centre and 11 years at

Garber Travel (acquired by FLT). Strong corporate sales and BDM background. Has overseen

strong corporate growth in the USA and Americas Steve Norris Managing Director EMEA. 19

years with Flight Centre. Vast experience in leisure and corporate travel sectors.

Appointed EMEA MD in January 2020 Strong culture, with many long-standing

members of the team who have assisted in navigating previous travel and tourism shocks 16

FY22: Outlook Continuing to target a return to monthly profitability in both corporate & leisure •

Timing uncertain & largely in government hands – relies on borders opening & staying open,
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international travel resuming with fewer restrictions • Uncertainty means FLT is not currently

able to provide FY22 guidance. Breakeven requires circa 50% of traditional TTV in corporate,

circa 40% in leisure (based on current cost bases – will increase if FLT invests further in key

growth drivers). Longer term target of returning to 2019 TTV levels on monthly basis around

June 2024 Trading environment changing positively & rapidly. Larger scale international border

openings than initially expected (already moving beyond carefully selected two-way corridors or

bubbles). Further important reopening’s expected within next few weeks. International travel

resuming in NSW from November 1, two-way Trans-Atlantic travel from November 8 Potential

material benefit from recent re-openings. Large Australian leisure business very heavily

weighted towards international travel – more than 80% of pre-COVID TTV. US a key

destination for FLT's leisure and corporate customers globally - largest outbound market for our

UK and Canada businesses pre-COVID & 2nd largest outbound market for our Australian

business. 17 FY22: Outlook Expecting tangible returns on pandemic-period investments as the

world reopens. Now a leaner & more efficient organisation - well placed to benefit as the cycle

improves. Successfully executing key productivity strategies & achieving operational objectives

in both corporate & leisure. Assets protected - continued investment in key growth drivers,

including famous brands Post-COVID complexity plays to FLT's strengths. Customers will

require more assistance from our expert travel advisors as they navigate new requirements, seek

to understand restrictions that may still apply. Within this environment, our people’s knowledge

& our enhanced systems will prove invaluable at every step of the customer journey. Already

being seen in the corporate sector – customers calling for advice Business & geographic diversity

an ongoing strength. Has helped shield FLT from some of the challenges others have faced,

while also potentially fast-tracking recovery given earnings leverage to countries/regions that are
FINANCIAL REPORT 15

starting to exhibit strong recovery trajectories - about 55% of pre-COVID earnings from

Americas & EMEA. Main beneficiaries from pipeline of FY21 corporate account wins (circa

$US1.4billion) - 70% set to trade in these two regions. Significant potential upside in heavily

restricted markets like Australia & New Zealand that are particularly important to our leisure

division 18 Trading conditions improving – vaccination programs gaining momentum globally

FY22: Travel industry poised for rapid take-off 19 FY22: Trading update Global travel outlook

now considerably brighter.

Evidenced by Australia & USA announcements last week. Singapore also reopening

Positive early signs in Australia. Surge in enquiry + bookings growth. International leisure

bookings have now surpassed domestic bookings in Australia for 1st time since start of the

pandemic - almost tripled between July and September. Booking numbers this month have

already surpassed the September total with more than a third of the month still to come. UK,

USA & Fiji emerging as hotspots. Interest in these destinations has increased by multiples of 6,

11, and 20 respectively during the past month alone (based on web sessions). Already this

month, bookings to Fiji are in line with October 2019 (pre-COVID) in the Ignite business &

more than two-and-half times the September 2021 monthly total in FLT's Australian leisure

business 20 FY22: Increased AU store quotes & bookings. Recent reopening announcements in

Australia have already led to increased quotes & bookings across the Australian leisure store

network. Week on week growth in quoted TTV currently exceeds growth in booked TTV, as

expected at this early stage of recovery, and is a positive lead indicator 21 FY22: Shift in AU

store sales mix to International. In Australia, recent reopening announcements have prompted a

surge in international enquiry & bookings in our leisure stores, with international TTV booked so

far in October exceeding domestic TTV. International TTV booked in our Australian leisure
FINANCIAL REPORT 16

stores to date in October is 68% of the total TTV booked, compared to 82% pre-COVID Pre-

Covid During lockdown Post border announcements 22. Drawing on our experiences so far in

other locations that have experienced strong & immediate leisure rebounds. United States &

South Africa. Bringing back FTEs in Australia to service the likely surge in demand. COVID

support desks being developed to help customers navigate post-COVID travel complexities.

Enhancing capabilities across other sales channels to reduce immediate pressure on shop network

FY22: Learning from the USA & South Africa 23 FY22: Continued gross TTV growth during

Q1 Note: Gross TTV excludes refunds 24 Trading Update: Global Activity - September 2021

Sales gradually increasing and tracking at +27% of pre-COVID levels globally United States

Corporate 35% Leisure 36% Canada Corporate 38% Leisure 11% UK Corporate 39% Leisure

7% Europe Corporate 59% South Africa Corporate 62% Leisure 44% Australia Corporate 45%

Leisure 11% New Zealand Corporate 27% Leisure 4% Greater China Corporate 41% India

Corporate 39% Leisure 28% SE Asia Corporate 11% Notes: All figures presented are unaudited

management accounts for the month ended 30 September 2021. Group 27% Corporate 41%

Leisure 14% 25 Cash outflow – September 21 Financial Results All figures presented are

unaudited management accounts as of 30 September 2021. Net cash outflow ($m) Sept 2021

Hibernation operational costs (82) Capex (1) Hibernation cash costs (83) Variable costs (11)

Total cash outflow (94) Cash revenue 52 Net operating cash run rate (42) Government subsidies

1 Current net operating cash outflow (41) Financial Results 26 Results generally in line with

expectations.

Cash ouflows impacted by decreased revenue during ANZ lockdowns, seasonality

(extended Northern Hemisphere summer holidays), removal of government subsidies &

significant investment ramp-up ahead of anticipated surge in demand when borders reopen.
FINANCIAL REPORT 17

Accounting losses for the period slightly higher than operational cash outflows - customer

refunds + non-cash D&A Recovery set to accelerate. Increased activity likely as borders reopen

– leading to stronger revenue generation. Several countries now profitable/approaching

breakeven – South Africa, UAE, Mexico, France. Singapore poised to follow, given relatively

low cost-base + new Vaccinated Travel Lanes with key countries that traditionally represented

about 40% of the business's sales. Corporate Traveller brand globally expected to be close to

breakeven in October 2021 FY22: Q1 results Financial Results 27 FY22: Corporate Q1 results &

trading update Continued corporate sector recovery = Growing to Win. Corporate businesses

globally contributed circa $AUD1b to Q1 group TTV. Further foundations for organic market-

share growth established – fuelled by strong account wins & high retention. Accounts with

projected annual travel spends in excess of $US500m secured during FY22 to date. New

products & platforms deployed to fortify an already strong tech offering. Melon (new Corporate

Traveller SME platform) now live in USA & Canada. FCM Platform now operational in China

& in beta testing elsewhere ahead of CY22 release. Game changing new digital platforms that

will deliver meaningful benefits to customers & are likely to further disrupt legacy travel

management companies 28 28 Why we win – 2 Global Category Leading Brands The World's

largest SME focussed TMC, offering a unique blend of seamless technology, dedicated experts,

strong culture and the widest choice of content. CT offers a personalized experience and is

designed solely for the SME market. The only alternative to the traditional 3 TMCs offering

global consistency, flexibility, strong culture, the widest choice of content, and award-winning

technology. 29 Putting customers first Hierarchy of needs has changed for customers.

 From cost to a duty of care.

 From offline to digital service.

FINANCIAL REPORT 18

 From 9-5 to 24/7.

 From simple to need for advice.

Key focus on sustainability

Our proprietary technology allows the agility and adaptability to meet the needs. New

approval and communication features. Integration of COVID and safety features. Sustainability

built-in for visibility, offsetting, and program impact. Always on, any channel for support and

advice. In beta testing, Pilot customers in September 2021, Global availability in January 2022,

the US launch in September 2021, and UK/CAN/RSA/AU/NZ over next 12 months Proprietary

Tech 30 Structural change complete Positioning for recovery Early evidence strategies are

working

Investment in leading digital technologies to enhance offering across all channels – shop

(FCB & premium), online, B2B & call center. Brand rejuvenation and launch. Shop & brand

network rationalized - accessibility maintained for customers. New growth models - developed

& deployed. Increased market-share across new multi-channel leisure platform in Australia and

South Africa. Rapid growth in online market-share. US leisure profits. Pent up demand

demonstrated upon any openings Leisure: Full-year update and highlights 31 Global leisure

model TTV shift – FY19 to FY24 Note: Complementary includes GOGO and Ignite and

excludes Travel Money. Resolutions 33 Resolution 1: Re-election of Director - Colette Garnsey

The number of proxies received for the resolution is: Decision Count % For 85,254,241 98.08

Against 1,299,028 1.49 Open 374,287 0.43 Abstain 529,305 34 Resolution 2: Re-election of

Director - Robert Baker The number of proxies received for the resolution is: Decision Count %

For 85,531,703 98.42 Against 998,222 1.15 Open 375,122 0.43 Abstain 551,814 35 Resolution

3: Remuneration Report Adoption The number of proxies received for the resolution is: Decision
FINANCIAL REPORT 19

Count % For 69,055,431 97.83 Against 1,133,157 1.61 Open 389,902 0.56 Abstain 708,411 36

Resolution 4: Approval of the issue of Notes (refresh placement capacity) The number of proxies

received for the resolution is: Decision Count % For 86,062,059 99.07 Against 402,736 0.46

Open 405,206 0.47 Abstain 586,859 37 Resolution 5: Approval of the grant of Global Recovery

Rights (refresh placement capacity) The number of proxies received for the resolution is:

Decision Count % For 86,089,947 99.11 Against 375,932 0.43 Open 396,962 0.46 Abstain

594,024 38 Resolution 6: Approval of the grant of PCRP Rights (refresh placement capacity)

The number of proxies received for the resolution is: Decision Count % For 81,667,478 96.98

Against 2,136,597 2.54 Open 401,250 0.48 Abstain 3,251,535 39 Resolution 7: Approval of

future issuances under the Flight Centre Employee Share Plan (ESP) The number of proxies

received for the resolution is: Decision Count % For 86,120,453 99.14 Against 330,395 0.39

Open 407,693 0.47 Abstain 536,166 40 Resolution 8: Approval of future issuances under the

Flight Centre Long Term Retention Plan (LTRP) The number of proxies received for the

resolution is: Decision Count % For 79,189,408 91.13 Against 7,307,994 8.42 Open 395,881

0.45 Abstain 532,024 41 Resolution 9: Amendments to the Constitution The number of proxies

received for the resolution is: Decision Count % For 69,183,594 79.69 Against 17,242,757 19.86

Open 391,167 0.45 Abstain 639,343 End of Presentation General Questions?

ANALYSIS

All figures recorded in ‘$’

FINANCIAL REPORT 20

Short-Term Financial Plan

  Q1 Q2 Q3 Q4

Beginning cash balance  154000 154000 154000 154000

Net cash inflow  863500 918500  996000  924000 

Ending cash balance  101750  107250  115000  107800

0 0 0 0

Minimum cash balance  100000 100000  100000  100000 

Cumulative surplus        

(deficit)

The following criterion can be used to make efficient decision making in bringing up a new

product;

The company emphasizes ease of implementation. In this way, the company looks at the

availability of models required to set up the new smartphone.

The also looks at the cost of setting up the new product. In this way, it looks at the prices of the

technology required to advance the product.

Ease of modification, scalability, and flexibility are also major pointers. These help to know

whether it is easy to modify the existing smartphone. (Smith, 2019)

The risk levels are also considered in setting up the smartphone. Here we are talking about the

issue of return on investment. A lot of money might be injected into bringing the new
FINANCIAL REPORT 21

smartphone but also return on investment must be considered. The market survey and sales of the

old phone must be compared to the future of the new phone.

PIEPKORN MANUFACTURING

Short-Term Financial Plan

  Q1 Q2 Q3 Q4

Target cash balance  10000 100000 100000 100000

Net cash inflow  90800  45400 454000  454000 

0 0

New short-term investments        32500

Income from short-term        

investments

Short-term investments sold        

New short-term borrowing        

Interest on short-term borrowing  11500 115000   11500 115000 

0 0

Short-term borrowing repaid        

Ending cash balance  10000  10000  10000  10000

0 0 0 0

Minimum cash balance        

Cumulative surplus (deficit)        

FINANCIAL REPORT 22

Beginning short-term investments        

Ending short-term investments        

Beginning short-term debt        

Ending short-term debt        

The following majors can be used in deciding on the feasibility of the new smartphone:

Prepare a preliminary analysis on the viability of starting up the new smartphone. In this way, the

company will know whether the new smartphone will yield more profits than the old

smartphone.

The company should create a projected income statement. The statement will show future profit

or loss expected from the sales of the smartphone. (Allian, 2020)

The company should conduct a market survey to find out whether people are enjoying the

services of the existing smartphone or if they need a better smartphone on the market. The

company should make a business plan which will help to project all the necessary financial

plans. The company should also prepare a balance sheet which will help it to know its financial

position.

Fixed assets: Fixed assets are a category of assets that have a long shelf value and are also

usually permanent. Characteristics of fixed assets include: their period of service is usually more

than one year; their turnover coefficient is negative or zero; are consumed slowly in their period

of service, and they usually have depreciation after their period of service. They include the

following; cars, lands, machinery, and office equipment among others.

FINANCIAL REPORT 23

After depreciation of fixed assets, they are deposed off because they cannot any longer live their

usage, with these, however, the disposal costs are also incurred. Fixed assets are also classified

according to tangibility or intangibility. Tangible ones include items that are physical and are

usually used by the company to produce more stock or materials. These include land used to set

up the plant for the industry, machinery used in the manufacturing of products, and vehicles used

to transport the goods to the final consumers among others.

Intangible assets are those that are not physical and these include; patents that are given to

innovators and creators of content, stock, and bonds which are issued by governments in their

central banks as an offer in investment to the public, funds are required by the governments for

revenues to give services to the citizens.

IAS 38: Intangible assets; this standard outline the accounting requirements for intangible

assets, which are non-monetary, intangible assets that have no physical substance and are

henceforth separable, arising from contracts or other legal rights. Intangible assets that meet the

criteria are measured on a cost basis, using the revaluation model, or amortized on a systematic

basis over their useful lives. An intangible asset is an asset that is not physical. This includes

goodwill, brand recognition, and intellectual property such as patents, copyrights, and

trademarks. Whereas tangible assets are those that are physical such as buildings, plants, and

equipment, vehicles, machines among others. Financial intangible assets provided by the bank

for example stocks and bonds which are issued by contract or agreement are types of fixed

assets. Intangible assets created by entities legally such as brand names are not considered in the

statement of financial position or any other statements of the financial year; they have no

recorded book value. IAS 38, Intangible assets was instituted by the International Accounting

Standards board in 2001. This helped to further institute the crisis involved in past accounting
FINANCIAL REPORT 24

eras. Intangible assets are acquired and at times their face value decreases or increases in price

and costs. Some of these like patent rights can be resolved with either an increase in value or a

decrease in value. Intangible assets can as well be permanent like tangible assets. With all the

data analysis and review, the company will a final decision.

RECOMMENDATION

The company has several details of forecasting risks of bringing up the new smartphone.

The information provided especially quantitative data shall help in decision making, financial

judgments, impacting profit margins, cash flows, allocation of resources, staffing, and over roll

stability of the future project. The company should embark on a strategy of energizing all the

required departments to foster the continuity of the company.

FINANCIAL REPORT 25

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