Introductory Financial Accounting



4381507675880bRISBANE BRONCOS LIMITED00bRISBANE BRONCOS LIMITEDcenter4500480695Introductory Financial Accounting11540067000Introductory Financial Accountingcenter790008446770MAria tyler - ACCT11081STUDENT - Grace Lynam - 100112791154000MAria tyler - ACCT11081STUDENT - Grace Lynam - 10011279right23002457452017760098002017Step 3Personal Blog Link - Firm - Reports - INFORMATION:The Brisbane Broncos are a professional Australian Rugby League Football club which were founded in 1988. The club is based in Queensland’s capital city Brisbane, the main duty of the group is playing in Australia’s elite competition, the National Rugby League (NRL) premiership. Their other duties include, sales of sponsorship, membership and in house merchandise. The club has an impeccable reputation, they have won six premierships (three NRL), two World Club challenges and four minor premierships in multiple competitions, making them Rugby leagues Most Successful club in three decades. Before 2015 the Brisbane Broncos had never been defeated in a grand final nor had they failed to qualify for the finals. The Club holds the highest recorded annual revenue of $32.8 million out of all the NRL clubs for the year 2012 and is the only publicly listed sporting club on the Australian Securities Exchange (ASX). Broncos today is worth $42.3 million, with expenditure at $38.2 million the clubs profit (before tax) for the year ended 31 December 2016 is $4.1 million. Needless to say, the Brisbane Broncos are not only competitive in their sport, but also in their financial performance.Innitial thouhts & KCQ’s on company’s annual report: Brisbane Broncos! I was ecstatic the moment I received my company, not only is it an Australian company, but also my favourite football team! I remember my first initial thought after finding out I was investigating the broncos was, how do they even make so much money? how much do sponsors contribute? I was keen to have these questions answered, so I printed off the last three years’ worth of annual statements, (two ink cartridges and a box of paper later) I was on my way to grasping the business realities of my firm. Whilst reading my firms annual reports, the first thing that became fascinating to me was the amount of government founding and grants the group receives. They have received all kinds, from ones that encourage indigenous programs to grants they receive to contribute to the construction of the new Training, Administration and Community Facility, which mind you, is an approx. $27.2million project. The new TACF building has been considered a ‘stay in business’ investment for the group, this is due to amenities and facilities such as, gym’s, training fields and department buildings falling behind those of the groups competitors, as well as becoming outgrown within operating space. Therefore, impacting the long term growth and operating efficiency of the organisation. The Federal Government committed $5million to the project in 2015 and the group at present has received $4.6million of the $5million. Although, in 2016 the Federal Government has again committed at further $2million towards the project, no formal agreement is yet to be written up. Another thing I found interesting about the group was the different ways revenue was generated. There were numerous different revenue avenues such as, gate tickets, sales of merchandise, grants received, dividend revenue, interest revenue, rendering of services, sponsorship revenue & membership revenue. Some of these were self-explanatory although others I really had to look deeper into understanding. Sponsorship revenue was one I spent a lot of time on, trying to figure out how much they each contributed to profit was merely impossible, as it was not broken down. Club Grants where another income source that interested me. For 2016 Grants received from National Rugby League amounted to $8,125,000, I was initially confused by this, I thought, “does the NRL pay the Brisbane Broncos that amount for them to play in the NRL?” I’m going ahead and assuming so. I was also very impressed with diversity of the group as at reporting date, woman represented 33% of the Groups total workforce (excluding football players), 71% in senior management positions and 20% at Board level. I found this quite a fair ratio for the group considering Rugby League is a male sport. The area I had most difficult understanding was the sponsorships area I have little understanding of what exchanges are made in order to generate profit. From my understanding, firms sponsor the Brisbane Broncos in exchange for $ for advertising?I am overall quite overwhelmed by the operations my firm undergoes in order to generate profit. Although after going though these reports for many days now I feel as If I am starting to grasp the concept of my firm’s business realties well. I feel as though my firm is doing exceptionally well financially and I am looking forward to the following steps for this assessment to enhance my knowledge. Directors & Group Financial performance Key Management Personnel The directors believe the Group continues to remain in sound financial position with $20,279,871 cash assets and $31,444,827 net assets. (Financial Position)Total Remuneration for KMP for year ended 31 December 2016 Totals $1,691,387 Group Performance – SuccessesYear Ended20162015201420132012Profit Before Tax $4.1million$3.77million$1.32million$3.01million$3.17millionEarnings Per share 2.862.610.852.072.19Share Price 37 cents 34 cents 26 cents 25 cents 23 cents In the Past 4 years - Profit Before tax has increased just short of a million, Earnings per share have increased 0.67 and Share Price has also increase by 14 cents. Gross Revenue for year ended 2015 was $42,298,939. Revenue was boosted due to the increase in Club Grant, growth in sponsorship, membership and in-house merchandise sales. Growth in government funding for the Indigenous and Community Programs foreseen five new programs launched in 2016. Home game attendance was up 0.2% from (2015: 33,543) – (2016: 33,610) Membership numbers increased from (2015: 28,596) – (2016: 36,203) Sponsorship revenues strengthened, up 7% from 2015. The groups Principle sponsor NRMA Insurance renewed contract for a further 3 years. Merchandise operations generated 7.3% growth from 2015 Interest Revenue increased from (2015: $0.49million) – (2016: $0.58million) Group Performance – Challenges 1.7% reduction in casual gate attendance Total corporate sales revenue fell 12.2% Total expenditure was up (2015: $36,666,364) – (2016: $38,185,939) although, this increase in expenses plat owed with the increase in revenue. operations Players : Darius Boyd The Brisbane Broncos Rugby League Football team finished strong for year ended 2016. After yet another epic encounter against the North Queensland Cowboys, the Brisbane broncos were knocked out in the semi-finals. In 2016 Darius Boyd, Josh McGuire, Sam Thai day, Matt Gillett and Corey Parker represented both Queensland and Australia in the State of Origen (Tournament of the states). Players have also been working hard in connecting with fans, supporters and aspiring young people in the assembly of programs that the Brisbane Broncos bring to the community. Under 20’s team The Brisbane Broncos National Youth Completion (NYC) players and staff faced many challenges during 2016, having lost over 50% of the playing squad from 2015. After a rebuilding year, the team went on to win 50% of their games in 2016 Supporting Rugby League The club has again joined Former Origin Greats organisations (FOGS) in conducting its regional dinner program in support of the Queensland Rugby League Community Three Functions were held in 2016 within local clubs in Cairns, Rockhampton and Perth raising a total of $29,339 to support junior rugby league. Sponsors BRONCOS SPONSORSHIP HIERARCHY 20160000The Club’s Principal sponsor is NRMA Insurance. The broncos and NRMA have been working together for the last 13 years and NRMA have also just renewed their sponsorship for the following 3 years.Step 4Step 4 was initially a little confusing and at first, I was wondering whose personal transactions I was supposed to be using to complete this task. Eventually, I realised it was my own personal bank statements that I would be analysing. Whoops!After gaining access to my online bank account, I printed off my transactions from my everyday transaction account for the last month. I then went through my statements and classified each transaction by different colour highlighters focusing on bills and spending. Once this was completed, I transferred the information to excel, completed my charts of accounts and constructed my own little Profit and Loss statement. I found this step very easy, but very interesting. I will definitely continue doing monthly balance sheets and link my months together for a yearly profit and loss. Doing this has allowed me to have a more in-depth look at exactly where my money is going and where there is scope for improvement and saving.a)The chart of accounts used in the example would look like:Chart of Accounts Account Account #TypeNormal signHeader/detailLevelIncome 1IncomecreditHeader1Interest Income1-1IncomecreditDetail2Income salary & wages1-2IncomecreditDetail2Expenses2ExpensedebitHeader1Private health2-1ExpensedebitDetail2Income Protection2-2ExpensedebitDetail2Telephone2-3ExpensedebitDetail2Vehicle Rego2-4ExpensedebitDetail2Donations/Gifts2-5ExpensedebitDetail2General Living (food/fuel)2-6ExpensedebitDetail2 My chart of accounts:My Chart of AccountsAccount ?Account #TypeNormal signHeader/detailLevelAssets1-000AssetDebitHeader1Equipment 1-100AssetDebit Detail2Liabilities2-000LiabilitiesCreditHeader1Equity3-000EquityCreditHeader1Income 4-000IncomeCreditHeader1Income 4-100IncomeCreditDetail2Expenses5-000Expenses DebitHeader1Childcare expense 5-100Expenses DebitDetail2Gym expense5-200Expenses DebitDetail2Phone expense ?5-300Expenses DebitDetail2Electricity Expense 5-400Expenses DebitDetail2Rent Expense 5-500Expenses DebitDetail2General Living Expense (food)5-600Expenses DebitDetail2My chart of accounts is slightly different to the chart of account used in the example as it contains a little more detail such as; account numbers and types of accounts included. b)I think the General Living Expenses (food/fuel) and (donation/gifts) accounts could be broken down even further to provide an even more in-depth and specific understanding of where the household money is being spent. The more specific the breakdown, the greater the information and the clearer it would be as to where money is being wasted, where money could be saved or at least used more wisely.c) Grace Lynam Income StatementFor the month ended 31 July 2017????4-000 INCOME$??4-100 - Wages $ 4,414.85 100%?TOTAL INCOME $ 4,414.85 100%?????5-000 EXPENSE$??5-100 - Childcare expense-$ 263.89 6.0%?5-200 Gym expense-$ 32.85 0.7%?5-300 - Phone expense-$ 60.00 1.4%?5-400 - Electricity expense -$ 150.00 3.4%?5-500 - Rent expense -$ 700.00 15.9%?5-600 - General living expense (food)-$ 579.21 13.1%??-$ 1,785.95 40.5%?????Profit / (Loss) for the period $ 2,628.90 59.5%59.5%I then analysed my income statement in more detail. I processed/ my expenses as a percentage of my wage on the side to figure out which expenses where costing me the most. My top two highest expenses were not a surprise really: Rent and General Living, as these are my main expenses. Being a single mum means that there is very little room for random or impulse buying. I was however, pleased to note that my expenses were less than 50% of my monthly income and this has motivated me to continue my monthly savings! Step 5 Discussion on Trial Balance with fellow peersStep 6 ................
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