Question

please answer Q9 yo Q12 in Australian firm

a private placement? 8. Explain how shares are bought & sold? 9. Section 39 of the Public Governance, Performance and Accountability (PGPA) Rules requires Commonwealth entities to prepare annual performance statements, which measure and assess the performance of the entity in achieving its purpose. a. Identify and explain the key features of the PGPA performance statement. b. Identify and explain what must be included in the PGPA statement if the entity has a subsidiary. 10. You are employed by a large multinational company which manufactures chemical products. It has been decided to introduce zero based budgeting (ZBB) in place of the more traditional incremental budgeting. The manager of the Training Department has never heard of zero based budgeting. Write a short report to the Training Manager explaining how ZBB may assist in planning and controlling discretionary costs. 11. Explain the key features of the measurement of organisational and managerial performance, giving examples of the range of financial and non-financial performance measures that might be used. 12. A. When a business suffers a monetary loss due to an operational error, what should the business do to prevent this loss from happening again? B. How do business mange external, non-market risks, that are beyond their control?

Answer 1

9a. Key points of PGPA Performance statement

• At the end of each reporting period, Commonwealth entities must prepare an annual report for presentation to the Parliament by the entity's responsible Minister.
• It provides guidance to assist accountable authorities to prepare and publish annual performance statements for their entities as required by section 39 of the Public Governance Performance and Accountability Act 2013 (PGPA Act);
• It outlines the minimum requirements, prescribed by the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) in section 16F, for entities producing annual performance statements.
• The annual performance statements address the non-financial performance of an entity and must provide information about the entity's performance in achieving its purposes.
• The annual performance statements are intended to complete the cycle of performance reporting that commenced at the start of the reporting period with the Portfolio Budget Statements (PBS) and corporate plan. An entity's annual performance statements should report the actual results achieved against the performance measures and targets set for the entity in its corporate plan and PBS.

9b. If the entity has a subsidiary, the subsidiaries of the entity must be consolidated to present the financial performance and position of the consolidated entity. Therefore, the financial report of an entity must encompass all the entities it controls, accounted for in accordance with the consolidation standard

10. Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period. The process of zero-based budgeting starts from a "zero base," i.e. you need to start from scratch and strategize where your expenses can be cut and also every function within an organization is analyzed for its needs and costs.

Starting from zero for line of items the company can analyse its needs and cost from the beginning and also keeping in view the industry trends. Therefore this will enable thecompany to curtail discretionary cost. This will also give us a limit of budgeted expenses and revenues for the current year, which can be further be utilized for management decision making.

·11. . Features of organisational and managerial performance measurement:

• It should be based on activities over which managers have control or influence.
• It should be measurable.
• It should be timely.
• It should be consistent in its application.
• When appropriate, the actual results should be compared with the budgeted results, standards, or past performance.
• The measurements must not favor the manager over the goals of the entire organization. Often, managers have the ability to make decisions that favor their individual units but that may be detrimental to the overall performance of the organization.

Examples of financial performance measures are earnings, profit margin, average order value, and return on assets etc and non financial measures are company reputation, customer influence and value, competitiveness, innovation etc

12.  The two main reasons for a decline in operating profit are fairly easy to pinpoint – you either have a decrease in sales or an increase in expenses. Understanding the different reasons these occur can take more digging before you can stem the tide of profit erosion. Understanding common factors that reduce business profits will help you take steps to address them and spot problems quickly before they get out of hand.

Financial reports help you project income, expense, cash flow and debt service, allowing you to take steps to manage each of these critical areas. Divide your expenses into manufacturing and overhead expenses if you haven’t already. Manufacturing expenses include any costs directly tied to producing your product or service. Overhead costs are those you accrue to run your business, such as rent, phones, insurance, marketing and office supplies.

Track your manufacturing and overhead expenses each month as a percentage of sales to spot any large swings that indicate a problem. Even though credit card interest gets rolled into your balance each month, record it as an expense in your budget to get a true picture of your profits. Analyze your budget performance against your projections each month to determine if you need to adjust your spending based on faulty sales projections.