Manage Finances

1.1 Profits declined considerable in 2010 and 2011 after a good performance in 2009. The reasons were mixed but controllable. In 2009, revenues were up and expenditure was low. In 2010, expenses were pretty much the same but revenues dropped, creating less profits. In 2011, revenues were up but so were the expenses. Expendi Income $1,724.

ture $1,501.8

Tax

Profit

2011

92 $1,520.

5 $1,302.1

$222.95

$141.25

2010

36 $1,706.

1 $1,344.2

$218.25

$153.10

2009

52

2

$362.30

$234.03

Main areas for profit have been room’s division sales and food and beverage sales. Main areas for loss have been more than expected expenditure by housekeeping and kitchen. Profits and losses are also closely linked to the quality of our Standard Operating Procedures. Poor procedures that are inefficient lead to more labour costs and higher expenditure figure at the end of the financial year.

1.2 Profits and loss are linked to each decision made on every single day throughout the financial year within the organization. No one person or operation can lead to surprising losses. They are a chain reaction, one decision leading to the other catastrophe. Although Crimson is not in loss, the profits are not as much as they could be considering the fact that we have done better at same scales in the past.

Profit Tax 2009 2010

Expenditure

2011

Income 0%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Reasons for less than expected profits at Crimson are due to several factors across an array of hierarchical issues and personnel. A few of these are:         

Poor employee interaction High internal workplace politics Weak SOPs Unregulated working hours and Roster management Poor Inventory management High food costs Poor service leading to higher discounts Higher interest rates from banks Lack of employee induction and training

1.3 Crimson’s new Corporate Marketing Plan is all about attracting new customers and retaining them through excellent service standards. Inform-Attract-Deliver-Retain is the new strategy under which they plan to re-launch their hotel brand to promote growth within midsegment market. This entails companies, which are looking for medium-priced accommodation option for their employees and clients. Critical dates for the new plan are set in accordance with the fact that it will take around 8 months to make the plan fully functional and achievable: Step

Timeframe

Charting the Plan

1 Month

Approval

2 Weeks

Finance Allocation

2 Weeks

Budgeting

1 Month

Marketing

2 Months

Launch

1 Month

First Result Cycle

2 Months

Primary resources that would be required for the corporate marketing plan will be: 1. 2. 3. 4.

Finances from liquid funds/loans Assets from already existing register Human resources Equipment, facilities and supplies

1.4 Cash flow is the dominant tool to analyse the performance of a company. Cash flow is the movement of money into or out of a business, project, or financial product. It is usually measured during a specified, finite period of time. Measurement of cash flow can be used for calculating other parameters that give information on a company's value and situation. Cash flow can be used, for example, for calculating parameters:   

To determine a project's rate of return or value. To determine problems with a business's liquidity. As an alternative measure of a business's profits when it is believed that accrual accounting concepts do not represent



economic realities. Cash flow can be used to evaluate the 'quality' of income generated by accrual accounting. When net income is composed of large non-cash items it is considered low



quality. To evaluate the risks within a financial product.

In case of Crimson, analysing the cash of flow over last three years, we observe the following: 2011

2010

2009

$435.84

$402.45

$493.56

$30.53

$85.40

-$45.36

$466.37

$487.85

-$748.95

-$649.90

$448.20 $1,105.74

Cash Operating Profit Cash Activities Net Cash Cash Invested

It clearly shows that the money management has improved over the last few years and long-term investments have been more closely monitored to be invested in. purchase of fixed assets has increased and so has the sale of fixed assets. Interest received has also seen a substantial rise in last two years while the long-term deposits placed with subsidiaries have reduced.

1.5 Tax is a legal duty towards our government, which in turn, manages our communities for us and makes our environment a better place to live. Statutory requirements depend a great deal on the nature and type of business we operate. The nature of our business determines many of the statutory requirements we need to meet. The structure of the business For example, we need to consider: 

Whether our business will be a company, partnership, sole



trader, or trust. Each has different requirements Business registration requirements. If we're not trading under



our own name, we need to register our business name Australian Business Number (ABN) registration. All businesses



must have an ABN Goods and Services Tax (GST) registration.

Employing staf

If we intend employing staff, we may need to consider:     

Pay As We Go (PAYG) withholding tax Payroll tax The Superannuation Guarantee (SG) Awards or agreements Worker’s compensation (WorkCover).

Location Depending on where we locate, we probably should consider local government regulations dealing with:     

Development applications Building permits Height restrictions Parking requirements Landscaping.

Our industry Different industries often require different licenses. For example, a restaurant requires a food operator's license, whereas a building company requires a building license. The licenses and permits required vary according to the type of business and the local government in which the business operates. This subject goes on to cover: 

Sources of statutory requirements for different types of businesses



The help we can get with statutory requirements from SmartLicence other sources of assistance.

1.6 Using software to assist in keeping our finances in order is a great way to stay on track. Most financial software will allow we to keep track of income, expenses, and even our investments. Some even

have the option to automatically download or connect to our financial institutions via the Internet, which can simply the process even further. 1. Quicken Premier 2009 Intuit's Quicken software has been a staple for many people for years, and the 2009 edition continues to deliver the goods. Quicken allows we to easily track every aspect of our finances, from income, expenses, real estate, and our investments. As an added bonus, we can also directly connect to our bank or brokerage account through the web so that we don't have to worry about importing or manually entering data for most transactions. If we're a Turbo Tax user, we'll also enjoy the simplicity of importing our data from Quicken right into our tax return in Turbo Tax.

2. Microsoft Money Microsoft Money Plus Premium makes it easy to begin planning for our future, whether it is saving for college, getting out of debt, or building our retirement nest egg. Microsoft Money Plus Premium 2009 takes investment management to a new level with enhanced features that allow we to track our investments in great detail as well as having quick access to research tools. It is important to note that Microsoft Money is being discontinued as of 2009. We can still use existing software, but there will be no more updates going forward.

3. Mvelopes Personal Budgeting System Unlike Quicken or MS Money, Mvelopes is an online software tool. The real benefit to this type of system is that we can access our information from any computer that has Internet access. Mvelopes is also different in that it focuses on budgeting. Money and Quicken have a broad coverage of financial tools, but Mvelopes lacks the

more advanced investing and reporting features. But if we are looking for software that can help we get that budget started and keep track of where our money goes, this is a great alternative.

4. Mint.com If we're looking for a good free money management option, look no further than Mint.com. Mint is an entirely online application that allows we to manage and track our expenses from any computer. In addition, Mint seamlessly integrates with most existing bank accounts to easily import our data. If we're always on the go, Mint even has a mobile phone application that can help we keep tabs on our spending wherever we are. A few more have been compared below:

2.1 Resource allocation is the distribution of resources – usually financial - among competing groups of people or programs. Resource

management and hence, careful and planned allocation is vital to reduce waste, maximize efficiency and making required resources readily available to the managers. Achieving such target would put the company in a very strong position wherein all the managers have access to all the resources they require and such resources are being used at multiple levels across multiple departments making full use of time and efforts. This will give Crimson a strong competitive advantage and reduce its costs further and ensure higher product and service quality. In order to achieve this, it is important for the resources manager to know and understand what resources are required, where can these be arranged from, what resource is meant for more than one purposes, who need what resource, when and how frequently; and, the respective budgeting for such resources. Following will be the resources required by Crimson for the new plan:       

Manpower (Engineering and Maintenance) Human Resource (Operations) Financing Stakeholder Communication Personnel Marketing Resources Media Resources IT Resources

2.2 Additional Cost Estimation Plan: Item

Cost

Budgeting

$2,000

Marketing

$25,000

Equipment

$32,000

Communication

$4,000

IT

$10,000

Finance

$3,000

HR

$12,000

Media Resources

$5,000

Contingency Reserves

$18,000

2.3 Revenue

2011

2010

2009

2012

$580.13

$488.98

$460.08

$658.45

$1,093.37

$919.96

$1,073.95

$1,240.97

$0.00

$64.35

$85.54

$0.00

$1,673.50

$1,473.29

$1,619.57

$1,899.42

$29.89

$36.83

$69.50

$33.33

Profit on Sale of Assets

$0.00

$0.30

$4.09

$0.00

Profit on Sale of Current Investments

$0.05

$0.00

$0.04

$0.06

$11.68

$3.33

$0.00

$13.02

$9.80

$6.61

$13.32

$10.93

Total Other Income

$51.42

$47.07

$86.95

$57.33

Total Annual Income

$1,724.92

$1,520.36

$1,706.52

$1,956.76

$1,264.40

$1,101.44

$1,164.77

$1,390.84

Depreciation/Amortization

$108.46

$104.14

$94.46

$119.31

Interest

$139.99

$104.99

$95.40

$153.99

Income Food and Beverage Rooms, Restaurant, Banquets Other Operating Income Total Income Other Income Dividend Income

Exchange Gain Miscellaneous Income

Expenses Operating and General Expense

Other Total Other Expenses Profit Before Tax Tax Net Profit After Tax

-$10.88

-$8.46

-$10.41

-$11.97

$1,501.97

$1,302.11

$1,344.22

$1,652.17

$222.95

$218.25

$362.30

$304.59

$81.70

$65.15

$128.27

$90.27

$141.25

$153.10

$234.03

$214.32

3.1 Informing any other employee is a process wherein the responsible party must decide the level at which it is to be done. I would personally inform the managers and supervisors through a proper formal training session. A brief session for about an hour that contains scope for a detailed presentation, Q&A session and general discussions among the members. Rather than informally educating everyone and running the risk of them asking repeatedly or making

mistakes, I would conduct a formal training session wherein all the desire

information

about

budgeting,

finances

and

financial

responsibility can be disseminated and it could be ensured that it has been delivered and understood at both ends.

3.2 Funds do not exist within the company in the form of cash. Most fraudulent intentions come into effect through finance department, which handles and monitors all the transactions. It is thus important to have sufficient internal controls and checks to immediately highlight the responsible fraudster. It is not possible to prevent people from doing things. It is however, possible to have systems wherein any unwanted behavior becomes highlighted before bigger damage is on its way. Thus excellent bookkeeping and internal controls and checks are the only way through in this case. To have an efficient and fraud-proof system of bookkeeping we need to: 1. 2. 3. 4. 5.

Have one accounting and bookkeeping system in the company Have an internal auditor Ensure the ethical knowledge of our accountants is up-to-date Regular monitoring and cross-verification of transactions Weekly, monthly and daily reports to track any unusual transaction

3.3 Looking at the figures, it is quite apparent that the finances side of Crimson is unstable at times. As compared to 2009, income has not seen a substantial increase while the expenses have been rising all along. Interest payments have increased in magnitude. Net profit before tax has fallen substantially: 2009

362.30

2011

141.25

This is a major decrease and the reasons must be uncovered. On the other side, sale of Food and Beverage has increased over the last two years and so has the income from sale of rooms.

3.4 Revising the present budget for managing contingencies is a great step, as it will help Crimson to deal with the crisis-oriented situation with ease and efficiency and get back to normal at the earliest notice. To do this, it is important that Crimson starts to include a contingency budget within its main planning and organizing activity at the beginning and the end of each year. Risk management is the process of identifying and proactively responding to project risks. Generally (but not always) we will look for ways to eliminate risks or to minimize the impact of a risk if it occurs. However, what if we're unsuccessful in preventing some risks? In that case, the risk will actually occur and cause some type of problem for our project. If the risk occurs, there may be some monetary impact on our project. A risk contingency budget can be established to prepare in advance for the possibility that some risks will not be managed successfully. The risk contingency budget will contain funds that can be tapped so that our project doesn't go over budget. The question is--how do we know how much money to place into the risk contingency budget account? We can use Expected Monetary Value (EVM) as a technique to quantify the risk into budget terms. The risk contingency budget works well when there are a number of risks involved. The more risks the team identifies, the more the overall budget risk is spread out between the risks. The EVM technique provides a formula for determining the right amount of budget to apply to the risk contingency budget.

3.5 Our ability to tell the complete story of what happened to all client funds from the date of receipt to the date of the final disposition is a pivotal requirement of our job. We need to maintain a good audit trail that ties together all the records that relate to a financial transaction. We may record the same information several times in various journals and ledgers to accomplish this function. An “audit trail” is a number of documents that make it possible to trace what happened to trust or general funds that the practice has handled. It should start when we receive funds on behalf of a client and continue until we issue the final cheque and the balance that we owe the client is zero. The following documents provide a paper trail for most transactions that we will record:  

The initial receipt of funds; The initial deposit slip or copy of a bank receipt, which shows the date of the deposit, the amount of the deposit, the name/file reference of the client on whose behalf the money is received, the source of funds and the date stamp showing the



date the money was deposited and received by the bank; The bank statement which shows the date the bank has



credited the deposit; The cheque stub/cheque requisition, which shows when the



withdrawal was made and to whom; The cheque which shows the date it was drawn, the amount, the payee, the purpose of the cheque, the order of negotiation



from the endorsements on the back of the cheque; The bank statement which shows the date the bank account



was charged with the cheque; Any file documentation that would explain and support the deposit or the authority for how the client’s funds should be distributed, such as a closing statement of account, a court order or a signed authorization by the client for the disbursements of the funds.

Each deposit and disbursement should adequately provide a complete description of the transactions to which it relates.

3.6 Compliance with the legislation is a vital step we need to take alongside every other step we take. We want to be a legally operating company at all times and thus we need to have systems in place which are flexible and evolving enough to keep us up-todate with the legislation and statutory requirements: There are two compliance management models that you can use to ensure this: 

The ten commandments model: publish the set of rules, and



punish people who transgress them The quality management model: publish an intermediate set of policies and procedures which comply with the rules, and ensure that people follow the policies and procedures

The 'ten commandments' model works well where there is a simple set of rules that everyone can understand. It breaks down completely where there is a complex set of rules (such as ISO9001, or the Privacy Act), which need interpretation, or are just too large to memorize or access. The quality management model is widely used, and is actually

specified by regimes such as AQTF, ISO9001, and the Financial Services Reform Act. However, each of these regimes looks at the model in the context of the implementation of a single set of rules (AQTF, ISO9001, etc.). The problem facing most organizations now is that they have to cope with more than one set of rules. Many organizations have ISO9001 certification, and in fact we'll assume for the rest of this article that the organizations we're dealing with either have ISO9001 certification, or intend to get it, or have something equivalent. On top of that, all organizations have to comply with the law. The Privacy Act is just the latest in a long line of legislation aimed at the actions of organizations. The Trade Practices Act has been around for a while, and is every bit as binding (and if anything, more complex) than the Privacy Act. There are numerous pieces of legislation covering the operation of companies. Many industries have their own codes of practice or other sets of rules. Registered Training Organizations have to comply with AQTF standards. Companies that manufacture medical goods have to comply with TGA's GMP code. In short, every organization in the country has to comply with multiple, overlapping, sets of codes, requirements and laws. On a regular basis, the quality manager (or compliance manager, company secretary, etc.) carries out a 'scan' of the current legislation, standards, etc. There are two things to look for during this scan:  

Additional codes, etc., that need to be added New versions, changes, rulings, for existing codes

4.1 There is a set of legal requirements when it comes to publishing

annualized financial and non-financial reports. These regulatory and statutory requirements must be adhered to when disclosing company information at the end of financial year. Annual Report Compliance Checklist Letter of Submission Application for extension of time Charter Aims and objectives Access Management and structure Summary review of operations Funds granted to nongovernment community organisations Legal Change, Economic or other factors Management and activities Research and development Human resources Consultants Equal Employment Opportunity Disability Plans Land Disposal Promotion Consumer Response Payment of Accounts Time for Payment of Accounts Risk management and insurance activities Internal audit and risk management policy attestation Disclosure of Controlled Entities Disclosure of Subsidiaries Multicultural Policies and Services Program (formerly EAPS) Agreements with the Community Relations Commission Occupational Health and Safety Waste Budgets Financial Statements Identification of audited financial statements Inclusion of unaudited financial statements Additional matters for inclusion in annual reports Investment performance Liability management performance Exemptions Performance and numbers of executive officers Government Information (Public Access) Act 2009 Public Interest Disclosures Implementation of Price Determination

Credit card certification Requirements arising from employment arrangements Form of annual reports – generally Submission of annual report to appropriate minister Presentation of annual report to Parliament Annual reports size – presentation to Parliament Printing requirements Public availability of annual reports

4.2 Comparing the financial performance of past years with the current one is a base benchmark of performance analysis and makes obvious sense. We need to know how we did over a period of 365 days the same time last year and how did we do it in the current one. Monitoring and measuring figures and comparing them with the historic ones reveal patterns and trends that are useful to make decisions that will have a profound impact on the future of the company. Companies traditionally judge their quarterly financial performance by comparing their latest quarter with the same quarter of the previous year. They refer to this as “year-over-year” (YTY) change. Sometimes companies also point out how the current quarter’s results compare to the previous quarter, what is termed as “sequential” change. Comparing results of the fast three years, it is apparent that few changes are required to keep the business on a profitable track. Looking at the financials, it could be suggested that Crimson should: 1. 2. 3. 4. 5. 6.

Have more precise SOPs in place Report discrepancies more frequently Keep employees informed, educated and motivated Stick to stricter timelines and objectives Reduce costs and improve efficiency of operations Price the rooms strategically within the market to make better profits

4.3

Financial viability is about being able to generate sufficient income to meet operating payments, debt commitments and, where applicable, to allow growth while maintaining service levels. Assessment of financial viability is an integrated process involving a review of a company’s audited financial statements, Financial Performance Reports, business plan and other information that supports financial analysis. The initial focus of the financial viability assessment is a company’s audited financial statements for the previous financial year. The results are assessed with the budget and financial projections in the business plan. The trends in actual results over a three-year period are then assessed and projected forward over one to three years (depending on the registration class of the company). To place these results into a broader context, the company’s business plan is used in order to understand their future plans as well as their perspective on the business, growth (where applicable) and risks. The business plan will provide insights into the company’s resource management, growth plans (where applicable), capital structure and liquidity. The business plan provides the roadmap to guide the company towards its long-term goals. The financial plan is a vehicle to allow the company to realize its long-term goals. To ensure financial viability of the business, Crimson should:    

Assess its profitability and cash flow more frequently Assess its short term liquidity Assess its Capital Structure Perform an overall financial assessment with expert help regularly

 

Liquidity– including current ratio and cash flow assessments Solvency – including debt to assets assessment, debt to equity



assessment Economic Dependency

–

for

example,

reliance

upon

government funded training, or reliance on a particular cohort     

of students (e.g. overseas students) Revenue, profit and cash flow Commercial risk Audit opinion Contingencies Compliance with all of its statutory obligations (for example:

 

GST, taxation, superannuation, Companies Code) Compliance with accounting standards Accounting policies – impact of the organization’s accounting



policies on its financial risk. Independent reviews of



underlying assumptions Business planning including forecast income streams and

 

forecast expenditure Assets and liabilities Financial statements audited by an independent qualified



auditor Financial records for the previous 12 months, including profit

  

and loss, balance sheets Cash flow and bank accounts Short term budgets and forecasts, including assumptions Information on current and projected student enrolments,

 

including assumptions Tax records Information about current debts and debtors, credits and

    

creditors, loans and repayment Plans, and information on any legal disputes Inter-company dealings, transfers, ownerships and loans Contingent liabilities Ultimate ownership details Post reporting activities (includes activities that relate to the

financial

projections

including

period after accounts have been audited that would have a material impact on the organization’s operations, viability or ownership).

4.4 The current environment for financial management is a complex one:      

Financial management responsibility is often dispersed Many financial constraints Trade-offs and rationing Many stakeholders claiming rights of influence Cost reduction pressures IT to drive down transaction cost and streamline back office



functions Increasingly there are political risks as well as business risks.

If the aim is to improve business performance by better financial management, Crimson needs to ensure it is: 

Drawing a clearer connection between strategic direction,



Business Agreement targets, business objectives and finance Giving management at all levels absolute clarity about their budgets and the outputs and outcomes to be delivered with the funding, with appropriate rewards and recognition for



successful delivery Ensuring managers

set

and

track

progress

against

a

manageable, but stretching, number of key performance indicators (including unit costs) that enable them to identify and evaluate the cost of their outputs and be motivated to 

achieve continuous improvement Creating a business environment in which managers are committed at all levels to improve their cost performance and take

account

of

finance

when

taking

decisions.

The

department wants managers to be assisted in this task by a unified finance community that provides a highly competent, professional service.

The desired end result of these changes is a fully integrated departmental

planning,

budgeting,

performance

management

system, with a clear line of sight between the money, the plans and the delivery of operational and strategic priorities throughout the business. Leadership, People, Processes, Stakeholders, and Results – five elements that need to be aligned and managed to maintain a viable financial business.

5.1 The term financial viability refers to the short-, middle- and longterm ability of an organization to pay its bills, secure reliable and diverse sources of income and balance income and expenses. An organization, which continuously fulfills all these requirements, is often in publications called financially sustainable. It has achieved financial sustainability.

5.2

Asset

Liability

In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. Simply stated, assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset) In financial accounting, a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future. A liability is defined by the following characteristics: Any type of borrowing from persons or banks for improving a business or personal income that is payable during short or long time; A duty or responsibility to others that entails settlement by future transfer or use of assets,

provision of services, or other transaction yielding an economic benefit, at a specified or determinable date, on occurrence of a specified event, or on demand; A duty or responsibility that obligates the entity to another, leaving it little or no discretion to avoid settlement; and, A transaction or event obligating the entity that has already occurred.

Equity



A stock or any other security representing an ownership interest.



On a company's balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as "shareholders' equity".



In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage.



In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage.



Income

Expense

5. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixedincome (bonds) and cash/cashequivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor's portfolio. The amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as profit from financial investments. In accounting, expense has a very specific meaning. It is an outflow of cash or other valuable assets from a person or company to another person or company. This outflow of cash is generally one side of a trade for products or services that have equal or better current or future value to the buyer than to the

seller. Technically, an expense is an event in which an asset is used up or a liability is incurred. In terms of the accounting equation, expenses reduce owners' equity. Pay as you go (PAYG) installments PAYG installments are a system for paying amounts towards the expected tax liability on your business and investment income for the financial year.

Pay as you go (PAYG)

Goods and services tax (GST)

Fringe benefit tax

Business activity statement (BAS)

Pay as you go (PAYG) withholding PAYG withholding requires an entity to withhold an amount if it makes certain listed payments, including salary, wages, commission, bonuses or allowances to an employee, directors' fees, payments for a supply (goods or services) to another business that has not quoted an ABN, and certain dividend, interest and royalty payments. GST is a broad-based tax of 10% on the sale of most goods, services and anything else consumed in Australia. FBT is a tax payable by employers who provide fringe benefits to their employees or associates of their employees. For example, a fringe benefit is generally provided when an employer:  Allows an employee to use a work car for private purposes  Gives an employee a cheap loan  Pays an employee's private health insurance costs. Businesses registered for GST use this single form to report their business tax entitlements and obligations, including GST, PAYG installments, PAYG withholding and FBT installments. You can offset tax payable against tax credits to arrive at a net amount. The BAS replaces several business tax forms.

Superannuatio A prescribed minimum level of superannuation required under the Superannuation Guarantee n guarantee (Administration) Act 1992 that an employer scheme must contribute for employees. The employer can avoid paying the Superannuation Guarantee Charge if sufficient superannuation contributions are made to a complying

superannuation fund or RSA.

Work Cover

5.3

WorkCover covers most workers injured within Australia - employed workers injured overseas or interstate in the course of their work. It covers all work activities including lunch breaks. Apart from some rare exceptions, coverage is given irrespective of who caused the injury.

Bilateral or regional trade agreements

Bilateral Trade Agreements are between on two nations at a time. They are fairly easy to negotiate, and give those two nations favored trading status between each other.

International Commercial Terms (INCOTERMS)

The Incoterms rules or International Commercial terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) widely used in international commercial transactions. A series of three-letter trade terms related to common sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods. The Incoterms rules are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade. They are intended to reduce or remove altogether uncertainties arising from different interpretation of the rules in different countries. First published in 1936, the Incoterms rules have been periodically updated, with the eighth version—Incoterms 2010—having been published on January 1, 2011. "Incoterms" is a registered trademark of the ICC.

Trade Practices Act

The Competition and Consumer Act 2010 is an act of the Parliament of Australia. On 1 January 2011 the Competition and Consumer Act 2010 replaced the Trade Practices Act 1974. The act provides for protection of consumers and prevents some restrictive trade practices of companies. It is the key competition law in Australia. It is administered by the Australian Competition and Consumer Commission and also gives some rights for private action. The Warsaw Convention is an international convention, which regulates liability for international carriage of persons, luggage or goods performed by aircraft for reward.

Warsaw Convention

Originally signed in 1929 in Warsaw (hence the name), it was amended in 1955 at The Hague and in 1971 in Guatemala City.

World Trade Organization determination s Australian Accounting Standard

The Australian Accounting Standards Board (AASB) is an independent accounting standardsetter based in Melbourne, Australia. The Board comprises 14 members including the

Board (AASB)

Chairman. The Chairman is appointed by the Minister for Superannuation and Corporate Law and members, from a variety of backgrounds, are appointed by the Financial Reporting Council (FRC). The AASB is committed to developing, in the public interest, a single set of high quality, understandable accounting standards that require transparent and comparable information in general purpose financial statements.