International Developments of Accounting Essay Example | Topics and Well Written Essays - 4750 words

Inter topic Developments of Accounting - Essay ExampleAfter complete analytic thinking it was observed that British airways have been in trouble deeply due the problems of loss in revenue, twopenny-halfpenny air line competitions and others. On the other side Emirates enjoys good amount of profits and reputation and its large-minded from problems. Recommendation is being made for British Airways to actively change their approach towards customer management and expire special discounts and promotion apart from other advertising techniques in order to take care of rate of flow crises. In the last an analysis of performed in between US GAAP and IFRS and it was concluded that IASB and FASB should actively aline with each and try to get a reasonable solution for this dilemma so that the institution of accounts is provide with IFRS and being followed by all the countries in the world. Introduction After the incident of 9/11 there were many things which got changed. One of the majo r changes which the companies have seen is the Airline industries falling from the Sky to earth. This was due to the fact that the aero planes were utilise for terrorism purposes. People avoided to travel by Air instead they use other means of get from one place to other. Further to increase the problem recent recession gives all the businesses in the world a tough time. Airline industry was given still tough time and got financial crunch. In order to get our purpose we have selected British Airways as one of the Company and other air hose selected is Emirates (A UAE based skywayr). The monetary Data was compared using the Ratio Analysis. About The Airlines British Airways The flag carrier of Britain is know as British Airways. Headquarter of the airline is based in Waterside which is near the hub of the Airline at London Heathrow Airport. This is the largest airline of United Kingdom in term of Fleet size, international flight and international destination. Emirates Emirates airline is the national airline of Dubai, United Arab Emirates. Emirates are the largest airline of Middle East. It carries around 2,400 passengers per week. Headquarter of the airline is based in Dubai. (British Airways) (Emirates n.d.) Financial Statements Analysis We will analyze the financial statements ratios in the following criteria. 1. Profitability 2. Liquidity/Solvency 3. Working slap-up efficiency 4. Long term financial structure 5. Investors perspective Profitability Return on fairness In case of British Airways, the return on equity their percentage of return to equity bearer is on a declining trend. The return on equity in the year 2009 was in the negative district at 19% and the losses further increases in the year 2010 which makes the return on equity to further negative zone by 1% i.e. 20% in total. (Emirates) Whereas, in case of Emirates Airline is stated at 5% in the year 2009