Discussed with other students & my KCQs

We discussed each company in our class.  It was very interesting for me. 

However, other students were not interested in this discussion.  I could find several similarities and differences among five students.  I liked it but I do not like introducing myself.  I discussed my company with a girl.  I found her company is a similar service company, the Australian company: Mermaid Marine which is in the shipping industry provides services transporting gas and oil from Australia to other countries.  I was excited because it was a similar service company!!!  We could find differences because my company is English.  So, we could not compare revenue or other financial differences.  In balance sheet, there were differences.  My company did not have unearned revenue while, hers company has the account.  Why?  I thought, each company has distinct contract conditions between their clients.  So, her company has received a specific amount before providing services to their clients.  It was interesting.  I can imagine a lot about what transactions were recorded.  My company had a foreign currency hedge in the changes in equity statement.  However, her company did not have it.  Why? The company also operates business with other counties’ companies. 

Also, I discussed about each company with the other three students.  It was interesting, too because each student’s company is from a different country where Australia, New Zealand and England and different businesses such as construction, shipbroking, medical services and a retailer.   As a result, there were several differences in the financial statements.  Account names, categories; income details, setting up and currency are different on each income statement.  Each country has different financial years.  Particularly, retailer and service businesses have different balance sheet because retailers have an inventory.  Service companies do not have this.  On the other hand, all financial statements’ concepts or thinking and layout are similar.

Favorite blogs

http://emmasweedman.blogspot.com.au/
Emma Sweedman
I like her blog's structure.  It is easy to read.

http://annatowanacct11059.blogspot.com.au/
Anna Towan
Her blog and her company are very interesting. 

http://meganelouise.blogspot.com.au/
Megan McCormickHer KCQs are interesting for me. 

Clarkson PLC: 3 Assets, 3 Liabilities & 3 items of Equity and my KCQs

Assets

1. Property, plant and equipment (non-current assets)

One of assets that is important to operate business that cannot be liquidated easily.  In addition, these assets are tangible and fixed.  Ex) land & its improvements, building, vehicle, plant & machinery, equipment and more.

2. Intangible assets (non-current assets)

These assets are not tangible.  These assets are an entity's intellectual property such as goodwill, copyright, patents and business knowledges. 

3. Trade and other receivables (current assets)   

Receivables are a current assets that are possible to earn cash soon by customers and debtors. 

When I read this company's balance sheet, I was wondering about some points.
This company balance sheet shows firstly non-current assets.  Why? I think that nomally current assets are shown first???

Liabilities

1. Trade and other payables (current liabilites)

This is oposite receivable.  Payable is a liability that money is owed by an entity.  In addition, they are paid soon for creditors. 

2.  Provisions (current and non-current liabilities)

This is an liability which is uncertain timing and amount. 
Why they have current and non-current???

3. Deferred tax liability (non-current liabilities)

Accounting is using accural accounting method that all transactions have to be recorded unless cash flowing.  However, tax is not using this method.  Tax is using cash basis.  Therefore, there are differences beween accounting record and tax.  The differences are deferred tax liability. 

Equity

1. Share capital

This is an equity for the entity's fund rising by issuing shares. 

2. Other reserves

Reserves are money for uncertainty economic conditions such as foreign exchange, hedging and more.

3. Retained earnings

Retained earnings are left over from net assets to share capital and reserves.

I am interested in my company’s assets and liabilities and equity.  When I read their balance sheet, I found an interesting point that this company’s intangible assets are big.  I read the asset’s footnote.  This company provides a lot of services such as dry bulk and gas chartering, sale and purchase broking, port and agency service, research service and investment service.  All these services are their intangible assets.  I thought these services are very special skills.  It is cool.  Also, the asset is an important point for their business, I think. 

About Clarkson PLC & my KCQs 2

Clarkson PLC  Annual Reports 2012, 2011 & 2010

http://www.clarksons.com/media/938463/Annual%20Report%202012.pdf
http://www.clarksons.com/media/2220/2011_annual_report.pdf
http://www.clarksons.com/media/21072/2010_annual_report.pdf

Annual Reports: What does it mean to me ???

Results from a specific year activities of an entity.  Also, the entity follows the game of rules such as accounting standards for preparing their annual report each year.  This company is an English public company.  Thus, they have to follow some specific accounting standards based on international standards.  Their Annual Report can be relevance, comparability, verifiability, timeliness and understandability.  These concepts help for users who are employees, investors, creditors, banks, governments and more external people for general purpose.  In addition, Annual Report does not only show profits and loss in a year but also demonstrates external influences activities such as environmental issues, corporate governance and their facing challenges for the entity's responsibilities.  I think an annual report is crucial role of an entity for representing whole the entity's result.  The annual report is influenced by whole society and numerous elements that very interesting and complicated. 

Clarkson PLC challenges

Clarkson PLC faces tough situations were impacted by global economic crisis.  In 2012 this
company annual report, they said that broking division's demands were decline.  Thus, this section influenced the section revenue related in other divisions' demands and revenue were decline.  However, their business does not only provide shipping services.  They will be able to provide other related good services.  They did not understand their clients and their market's demands and supplies well.  They have to understand it, too for providing good services.  They expect Gases such as LPG and LGC demands are increase more.  Their financial division is very tough at the moment.  They are trying to develop a variety of alternative financing structures and investment services for unique and true value to provide their clients. 

In their annual report, there are various risks. 
Credit : collecting accounting receivables from their clients
Liquidity: they need strong cash flow for foreseeable requirements.
Foreign exchange: their business operates with foreign currency.  Changing foreign currency impacts on their assets revaluation and borrowings.
Interest rate: The group has no borrowings.  Monies held on longer 95 and 100 day notice accounts earn interest based on a margin above LIBOR, the actual interest rate is reset each month.
This risk does not make sense for me.  What does it mean, actually?
Reputations: they are trying to operate ethically and legally through trainings employees
Operational: Numerous causes such as people, systems, external influences or failed processes create direct or indirect losses.


Clarkson PLC strategy

They have a clear strategy based on 6 key objectives.

1. Breadth: they provide a wide range of integrated services
2. Reach: they support their clients in all the world's key regions
3. Trust: they are the trusted source of essential shipping information
4. Understanding: they build long-term relationships with their clients
5. People: they empower everybody at Clarksons to fulfill their potential
6. Growth: they grow value for shareholders

Their strategy is for their stakeholders such as employees, customers and shareholders.  Company has to make positive benefits for stakeholders in particularly shareholders.  However, they should not provide untrust information and treat employees unfair just for making positive benefits of the company.

About Clarkson PLC & my KCQs 1

According to OneSource Global Business Browers 2014, Clarkson PLC  is an investment holding company.  Its subsidiary companies are related with the suppying of shipping linked services.  The service divisions are broking, financial, support and research.

The broking division is a major part of their business because this division make more than half revenue of their business.  In Clarkson PLC website, they say "this company's shipbroking services are unrivalled".  It is very interesting! I would like to know about this company more.
This division represents their clients such as shipowners and charterers in the shipping transportation through diverse seaborne cargo services which are containers dry cargo, deep sea tankers, LPG and ammonia, LNG, offshore, petrochemical gases, shortsea and specialised products (Clarksons 2014).

I watched a movie 'Captain Phillips' last night.  The ship transported a lot of containers such as cargo and water from one country to another.

When I looked at this company website, I recognised that this company helps Japanese because they make money from the transportion of oils and gases such as LPG and LNG through brokerage. Also they support the development of offshore mining of natural gas with their high standards in technologies.

The financial division  operates a futures broking activities include arranging cash settled contracts for differences based on standarised freight contracts.  In addition, a financial and investing services provide advice to their clients about the financial aspects of various transacitons linked with shipping (OneSource Global Business Browers 2014).   They do not only provide shipbroking services but also give financial supports related their shipping broking services. 

They have many risks of shipping.  I realised the risks, when I watched the movie last night because the story was about a cargo ship was plundered by pirates. There are sea areas infesed with pirates.  These are big risks for shipping companies and industry.  Also, it is a challenge for their business. Therefore, their financial securities may help their clients and their business.   

The support division operates port and agency services such as selling and buying vessels, project logistics, vessel chartering, freight forwarding, warehousing, crew travel accomodations or property and industrial supplies (Clarksons 2014; OneSource Global Business Browers 2014).  They support  almost related shipping activities embarking and disbarking, warehousing and forwarding.

The research division provides timely and authoritative information about all aspects of shipping.  They also provide this industry market information to their clients and subsidiary companies for successing their businesses.  They research and provide offshore industry information such as oil and gas maps.  They do not only provide information about shipping industry but also collect, valiate, analyse and manage their information (Clarksons 2014).

Clarkson PLC website http://www.clarksons.com/

This company does not only operate shipping broking but also provides related elements such as financial, support systems and information research and anaylising.  All their business divisions can be interacted each other for their business. 

Australia relates with this company, too because they can work shipbroking to transfer raw materials such as irons and other mining products to other countries.

This company is not simple business.  However, their business relates with all shipping and seaborn businesses that is B to B.  Thus, I was not usually familiar with it but my country (Japan) relys on importing a lot of materials which are oils, gases and food from another countries.  Their business may help Japanese supplies and demands as shipping products.  Also, they provide their high standard technologies and research information for offshore developments.  These are buzz words for Japan right now.       

Understanding this company and industry

I am not familiar with this industry.  So, I have to understand this much futher than now.  My flatmate recommended to watch a movie such as "Captain Phillips" tonight. 
However, I am not sure that this movie is going to help my study....

So, my first KCQ is that I do not know shipping industry.  So, I am going to watch movie and look wikipedia for fundamental knowledge.  After that I may able to understand my company, too. 
This video shows about shipping business.  My company provides other shipping services, too.
I could imagine the industry details bit. 

My company; Clarkson PLC

Clarkson PLC

Clarkson PLC is English company.  Also, this company is a listed company in London Stock Exchange (London Stock Exchange 2014). 
The company has more than 1000 employees in 17 countries which has been in business for 162 years (Clarksons 2014). 


This company is running a business in the shipping industry.  In addition, the company has 4 divisions such as broking, financial, support and research (Clarksons 2014).


This industry is not familiar to me.  So, it is little hard to imagine that for me.  I can just imagine a huge ship carrying gas, cars, crops and more from one country to another country. 
What is your opinion about this industry or this company?  If you know some details about this industry, please let me know.  I would like to learn it.