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Question: Discuss About The Qualitative Research Accounting Management? Answer: Introduction JB Hi-Fi can be understood as the leading company that provides their customers with products which are required for carrying out their everyday household activities. The company produces electrical items of daily household use for its customers that consist of television, camera, refrigerator, software and much more. The company also has an altogether separate branch which mainly provides IT related services and also offers consultation to its customers (JB-Hifi, 2016). The presented report has been made by taking into consideration the 2016 annual report of the company. An overall view of the financial report of the company is shown in the article. A thorough introduction of the company followed by the activities of the board is given priority in this report. The corporate governance mechanism is also bought into view by the JB Hi-Fi company report. A deep study of the procedures followed by the company and its working is given the first priority in the report. Ratios of the compan y are used as an evaluation data to highlight and explain the working and the processes followed by the company. Analysis and discussion of JB-Hifi Appliances related to household utility, video games, CDs, Blu-rays, hardware and much more are the specialty of the production unit of the JB Hi-Fi with Australia and New Zealand being their main Dominical areas of work in the retail field. The company also provides consultancy services as another branch along with its major technological services. The company has a massive assistance of sixty home branded stores that helps the company is offering its services to its customers across the whole of Australia and New Zealand. Replacement of insurances, selling of the corporate items along with government and also education-related items with included service providence are some of the other tasks in which the company is involved. The company has its headquarters in Melbourne (JB-Hifi, 2016). JB Hi-Fi is also honored with the title of a rapid and successfully developing company in the whole of Australia. The company also pays attention in continuously increasing the quality of the produ cts to cater to the expectations of the costumes. The company maintained low-cost operation throughout the year that helped it to cater marvelous achievements in the dividend, sales, and the profit department as per the financial report of the year 2016. An increase in the sales of 8.3% and an increase in the net tax profit by 11.5% in comparison to the last year were recorded by the company with $3.95 billion from sales and $152.2 million form net tax profit section. This low-cost operational plan acts as a method to compare, provide and survive in the competition between different companies in the same field (JB-Hifi, 2016). The company through its activities has obtained the faith of its customers which helps it to experiment and expand its characteristics in different departments. Corporate investors always had the upper hand in the investor's department as per the record which proves that its five major investors belong to this category and this brings to light that their percentage of holding is much more significant and more. Involvement of corporate investors means that the company has been and has the capacity to perform continuously and ably (William, 2010). This also shows that the shareholders have much more faith in the company as compared to others in the same field. The proportion of the equity holding of other companies provides enough data to provide an idea of the working procedure of the company (Wagenhofer, 2014). The above data in respect to the matter of equity holding will also be enough to management the evaluation of equity in case of individual shareholders and shareholding by companies (Peirson et. al, 2015). Board of directors overview Name Gender Age Education Remuneration ($) Career history Gary Levin Male B.Com and LLB 1,56,000 In JB Hifi, Gary has been a director and is a member of Remuneration Committee and Audit and Risk Management Committee. Currently, he operates as the Board of Baby Bunting Group Ltd (JB-Hifi, 2016). Beth Laughton Female Bachelor of Economics, FCD, FAICD 1,66,093 Beth spent 25 years in corporate finance wherein she offered advice associated with acquisitions and mergers. Beth was also the non-executive director and chairperson of Sydney Ferries, a non-executive director of Port Adelaide Maritime Corporation, non-executive director, and member of Australian Stock Exchange Audit Committee. Thereafter, in June 2012, Beth became the chairperson of JB Hifi but was later transferred to the position of remuneration committee (JB-Hifi, 2016). Greg Richards Male B. Ec (Hons) 2,90,000 In 2007, Greg was appointed to the Board and thereafter in 2012, he became chairperson. He also worked at Goldman Sachs for 19 years. Presently, he is the chairperson and member of the Risk and Audit Management Committee and Remuneration Committee. Wai Tang Female MBA, BAppSc, and GAICD 1,15,201 In 2015, Wai was appointed to the Board and became the member of the Audit and Risk Management Committee. She pursues extensive experience in the retail industry by serving as senior executive and other roles of the board. She was also the general manager (GM) for Pacific Brands and co-founded Happy Lab Retail Confectionary Concept (JB-Hifi, 2016). Richard Murray Male CA, B.Com, Grad. Dipl. Extensive experience in Finance and Investment 2,750,596 In July 2014, Richard became CEO after being appointed to the board in 2012. In 2003, he joined JB Hifi as a Chief Financial Officer and took the business with the help of IPO processes. However, before he served Deloitte for ten years (JB-Hifi, 2016). Presently, he is the chairperson of Australia Charities Fund Employer Leadership Group. Richard Uechtritz Male 1,30,000 Richard has more than thirty years experience in retail. He is also the co-founder of leading photo chains of Australia like Kodak Express and Rabbit Photo. Thereafter, in 2000, he became the CEO and managing director of JB Hifi. James King Male B.Com, FAICD 52,000 In 2004, James was appointed to the board and thereafter, he retired in 2015. He further served as a chairperson and became the member of Remuneration Committee and Risk Management Committee. Evaluation of the characteristics of Board It is the primary responsibility of the Board to initiate follow up actions so that shareholder value can be maximized. Further, it is no doubt that, the company performance primarily depends upon the Boards functioning that ultimately influences the prices of shares. Therefore, they are surely answerable to the shareholders (Parrino et. al, 2012). Besides, adherence to appropriate corporate governance is also one of the major tasks required to be fulfilled by the Board and for such purpose, the CEO of the company must take effective steps towards enhancing its stability and profitability as a whole. Nevertheless, the major factors taken into account for the fulfillment of desired motives are diversity, experience, skills, knowledge, etc. With the help of these attributes, the company can easily mix the same with different people so that ideas and advanced thoughts can be attained and enhanced, thereby playing a key role in maximizing governance measures and decision-making ability a s a whole (JB-Hifi, 2016). Departments like financial expertise, executive expertise, governance expertise, property experience, merger or acquisition expertise, etc are some of the departments that necessitate skill and enhanced the experience on the part of the company so that it can enhance its productivity and profits as a whole. Furthermore, based on the records framed by the board, it can be witnessed that the company possesses an effective admixture of people who are adequately qualified and experienced in the previously mentioned departments, thereby assisting in enhancing the companys competitive advantage as a whole. Besides, these people can easily assist in efficiently planning the strategies of the company, thereby, in turn, assisting in proper decision-making on the part of the company. Nonetheless, the company possesses a massive number of non-executive directors within its framework and these are higher than the executives are. In the current scenario, JB Hifi has approximately six directors ou t of which one director is an executive (CEO) and the rest of them are non-executive directors. Overall, it is a very good opportunity for the company to undertake major initiatives to provide non-electoral and electoral information to the company shareholders (JB-Hifi, 2016). Further, it must also be noted that there are immense scanning processes and examinations that are conducted by the company prior to presenting a candidate for the purpose of election. Significant financing or investment decisions JB Hifi has made many important financing or investment decisions within its operations that have allowed it to sustain in the marketing. It has invested $52.3 million in the Capital Expenditure Project that is associated with the inauguration of its new stores, modification of the existing stores, online projects, and relocation strategies (JB-Hifi, 2016). These investment decisions can allow the company to maximize its productivity and earnings as a whole. Further, the company has also contributed towards its online projects on a large scale as it can create a better impact as a whole (Northington, 2011). For such purpose, it has also financed major online sites that were prevalent in New Zealand so that its online presence can be of greater effectiveness. JB Hifi has also invested in IT security measures so that it can reduce faulty breach of systems that pose a greater threat of loss. Furthermore, the company has also contributed towards its stores diversified in Australia and Ne w Zealand. For such purpose, it has invested in staff training, supply chain, store wages, etc that can play a key role in affixing a strong position of the company in the entire market. Key ASX Corporate Governance Principles and Recommendations Every listed organization must make timely disclosure of important items that can affect decision-making. Remuneration of directors must be sufficient to attract and retain high-quality directors. Every listed company should possess board of an accurate size, composition, and skills. Every listed organization must also disclose their duties and roles together with performance monitoring procedures. Every listed company must undertake ethical and responsible operations. Every listed organization must also respect shareholders rights by providing them required facilities. External function of audit It can be seen that the auditing report of the company has been made taking into consideration the requirements in Corporations Act 2001. This act deals with the auditors independence and it is satisfactory to witness and observe that the information of such Act offered to the company is clearly equivalent to that of the companys annual report. In other words, the company offered all the necessary details regarding the action to the board prior to the enactment and presentation of the annual report (JB-Hifi, 2016). Remuneration of auditors: Audit and review of financial statements 333000 323500 Audit and review of subsidiary financial statements 29800 29000 IT services (i) 58216 511507 Net remuneration for audit and other services 421016 864007 (Source: JB-Hifi, 2016) The major plan of the company was Customer Relationship Management Tool for which Deloitte operated as the auditor for the period 2015-2016. Measures to assure moral judgments JB Hifi has adopted a Code of Conduct within its framework so that it can assure that its environment has the highest level of ethics. In relation to this, every respondent is under a non-delegable duty to comply with the same and in return, the company will always endeavor to safeguard their dignity, freedom, and rights (Petty et. al, 2012). This assures that a safe and sound environment is created that is not only challenging but also rewarding to the employees. Besides, the company also attempts in safeguarding the personal and private information of its subordinates so that a sense of ethical responsibility is effectively maintained (Melville, 2013). In addition, the company has also made sure that its auditors for completing the audit processes adequately adhere to AAS standards (JB-Hifi, 2016). Besides, this plays a key role in enhancing the audit quality as a whole, thereby assuring the fact that the financial details forming part of the annual report are true and fair or do n ot contain any material misstatement (Volcker, 2011) Top Investors Name Equity Percentage Australian Super Pty Ltd. 10,185,705 8.87% Legg Mason Asset Management (Australia) Ltd. 9,383,772 8.17% UniSuper Ltd. 6,847,103 5.96% Ellerston Capital Ltd. 5,985,908 5.21% Airlie Funds Management Pty Ltd. 5,918,853 5.16% Evaluation of ratios This ratio reflects the methods by which the company has utilized its resources to create income. Based on the ratio computation of the company, it can be seen that the equity turnover and asset turnover is accomplished in nature, which signifies that the resources are utilized effectively. Furthermore, this proves to be a strong indicator in terms of both financial capability and productivity on the part of the company (Libby et. al, 2011). Nevertheless, the total asset turnover ratio of the company enhanced in the current year and its asset turnover ratio witnessed a declining pattern. Liquidity ratio Liquidity ratio assists in signifying the ability of a company to meet its short-term debt obligations. If the liquidity ratio of a company is appropriate in nature, it also becomes easier to attain loan and other borrowings from financial accounting institutions. From the liquidity ratio of JB Hifi, it can be seen that it is in a strong liquidity position as its current ratio reports above one and is consistently around the standard ratio of 2:1 (Needles Powers, 2013). This means that the company is effectively capable of honoring its debt obligations with the help of its assets. In contrast to this, the quick ratio of the company had reported a negative trend as it remains below one. This is a negative indicator on the companys part as it signifies liquidity failure when stock or inventory is excluded from the current assets (Choi Meek, 2011). Profitability ratio This ratio signifies the ability of a company to generate income with its assets. Furthermore, from the profitability ratio of JB Hifi, it can be observed that both net profit and gross profit ratios depict a positive trend, as the rate of increment in these ratios is somehow marginal in nature (Libby et. al, 2011). However, even though these ratios are stagnant in nature, yet it must be noted that the company must focus on its operational costs so that an effective percentage of profit can be obtained. Leverage ratio This ratio is the amount, which is funded by equity and debt meaning that both the investors contribution and liabilities form part of the capital structure. In the case of JB Hifi, it can be seen that the equity ratio is below 0.5 that means low investment from the investors in comparison to the debt contribution. In contrast to this, the debt-equity ratio of the company is immensely high that signifies higher component of debt in comparison to the equity (Carmichael Graham, 2012). In simple words, if the debt-equity ratio of a company is higher than one, it signifies enormous reliance on debt contribution that is a negative aspect owing to higher payment of interests. Market value Earnings per share (EPS) play a key role in ascertaining the market value per share of a company. Moreover, companies that incorporate higher future earnings are also required to offer higher dividends or appreciate the stocks in the upcoming tenure (Merchant, 2012). In relation to JB HiFi, it can be seen that its price-earnings ratio has declined in 2016 that is a negative indicator in terms of performance. However, the entire aspect sheds light on the fact that the companys expected price is very effective in comparison to its earnings. This signifies the value of shares of the company that it can attain (Carmichael Graham, 2012). Furthermore, the EPS of the company also reflects that if they offer every dollar of their income to the shareholders, then in total the shareholders will receive 1.51 dollar each. Therefore, considering the overall aspect, it can be said that the companys fundamentals are strong in nature and in the long-run, it can easily outperform others (Scapens, 20 12). Management of cash flow This aspect plays a key role in signifying the net outflow or inflow of cash in a company. Further, in relation to JB HiFi, cash flow margin ratio, and operating cash flow ratio has been calculated to determine its cash flow aspect. The operating cash flow of the company has been below one that means lesser receipts of cash to finance debt obligations in the upcoming tenure (Brigham Daves, 2012). In this regard, it must be noted that a higher operating cash flow is very significant and a positive indicator as well. In contrast to this, the cash flow margin ratio of the company is lower in nature, which is a negative aspect in terms of satisfaction of investors and other external parties. In simple words, when these ratios are higher, performance is also better (Spiceland et. al, 2011) Conclusion As per the overall analysis, it can be commented that the company JB-Hifi is operating under strong fundamentals and in the past two years has posted strong returns. The entire analysis and scenario indicate that JB-Hifi has complied with the policies of the accounting. The board structure is strong and that has led to proper management. Moreover, the compensation system is in flow with the executive activities and hence, is justifiable in nature. The ethical structure of the company is well defined that is and hence, has enabled the company to attain a formidable position. As per the ratio analysis, it can be commented that the company has delivered strong performance in the last two years and that showcase the strong fundamentals of the company. However, some area or the segments can be refined through a strong analysis and effort of the management. Therefore, in all probability JB-Hifi can be selected for the purpose of investment owing to steady performance and strong forecast of the future, References Brigham, E Daves, P 2012, Intermediate Financial Management , USA: Cengage Learning. Carmichael, D.R. Graham, L 2012, Accountants Handbook, Financial Accounting and General Topics, John Wiley Sons. Choi, R.D. Meek, G.K 2011, International accounting, Pearson . 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