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

International Developments of Accounting - Essay ExampleAfter complete analysis it was observed that British airways have been in trouble deeply delinquent the problems of loss in revenue, cheap air line competitions and others. On the other side Emirates enjoys good amount of profits and reputation and its free from problems. Recommendation is macrocosm made for British Airways to actively change their approach towards customer management and give special discounts and promotion apart from other advertising techniques in cabaret to take care of current crises. In the last an analysis of performed in between US GAAP and IFRS and it was concluded that IASB and FASB should actively coordinate with each and crusade to define a reasonable solution for this dilemma so that the world of accounts is uniformed with IFRS and being followed by all the countries in the world. Introduction After the disaster of 9/11 there were many things which got changed. One of the major changes which t he companies have seen is the Airline industries falling from the Sky to earth. This was due to the fact that the aero planes were used for terrorism purposes. pack avoided to travel by Air instead they use other means of getting from one place to other. Further to increase the problem recent box gives all the businesses in the world a tough time. Airline industry was given further tough time and got financial crunch. In order to get our purpose we have selected British Airways as one of the Company and other skyway selected is Emirates (A UAE based airliner). The Financial Data was compared using the Ratio Analysis. About The Airlines British Airways The flag carrier of Britain is known 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 country 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 capital efficiency 4. broad term financial structure 5. Investors perspective Profitability Return on equity In case of British Airways, the return on equity their function of return to equity holder is on a declining trend. The return on equity in the year 2009 was in the negative zone 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