ADVANCE CORPORATE ACCOUNTING

Advance Corporate Accounting

Advance Corporate Accounting

Billabong

The word billabong is taken from Australian English which means small Lake, i.e. a lake adjacent to river cut off due to change in the watercourse. However Billabong International is an Australian clothing company that is traded on Australian Stock Exchange since august 2000. The company was founded by Gordon and Rena Merchant in 1973. The company currently has 677 owned stores worldwide and sells surfwear and accessories. The company acquired many other new brands which include Von Zipper in early 2001, Element in July 2002, Kustom & Palmers Surf in October 2004, Nixon in 2006, Xcel in 2007, Tigerlily in 2007, Quiet Flight Surf shop in 2008,DaKine in 2008, Two seasons also in 2008, Swell in 2009 etc. On Feb 2012 the company announced to go under a major restructure.

Over the period of 3 years the Share Prices of Billabong has shown a mixed trend. The Share Price of the company increased from $5.57 to $7.69 from June 2009 to June 2010 which was a rise of approximately 43%, whereas the following year share price reverted back to $5.71 recording a decline in 28% during the year 2011. The company increased its share capital issues 30 million shares which increased total shares issued by the company from 222 million shares to 252 million shares, an increase of 14%, during the year 2010. No further issue of shares was made during financial year 2011. Keeping in view the increase and share based and market price of shares during the financial year 2010 the market capitalization increased from $1.2 billion in 2009 to $2 billion in 2010. But a decline of 28% in Market Capitalization was witnessed in 2011 due to the decline in the market share price of the company. It should be observed that the decline in market capitalization is equivalent to the decline in the market share price of the company during the year 2011.

The book value of the company has shown an opposite trend during the three year period. During the financial year 2009, Billabong had a book value of $1.2 billion, which was almost equivalent to the Market capitalization of $1.24 billion during the same year. However, during the year 2010, the market price of the company increase, with a simultaneously increase in the share base. But the book value per share on the contrary declined in the same period from 0.95/share to 0.61 per share. This was primarily due to historical cost recording and impairment of assets which resulted in a lower net asset based for the company. However, during the year 2011, where the market price per share decline the book value per share increased by 37% to $0.83/share

Qantas

Formally known as QANTAS which stood for "Queensland and Northern Territory Aerial Services", and nicknamed as “The flying Kangroo”, the company is now known as Qantas Airways Limited. As it is evident from the name itself, the company is an airline based in Sydney, New South Wales, with its main hub ...