Sport Governance and Strategy for Ball Sports - myassignmenthelp

Question: Discuss about theSport Governance and Strategyfor Ball Sports Victoria. Answer: Analysis of the financial statements of Ball Sports Victoria The financial performance of Ball Sports Victoria has been significantly poor owing to the various external and internal factors that have led to a loss of $32k. In order to review the financial statement of Ball Sports Victoria, it is essential to analyse the income statement of the firm for the years 2011 and 2012. In the income section, it has been observed that a higher percentage of income has been gained from the membership fees and a very small amount has been gained from advertising. The income for the year in 2011 has been $350,864 and it has increased to a significant amount in the year 2012, which has been $455,607. On the other hand, with the rise in income in the year 2012, the expenses of the company has even increased at a vast level. The expenses for the year 2011 has been $339,646 and for the year 2012 has been $487,782. It has been observed that member affiliation and insurance has been the highest expenses incurred by the company. In the year 2011, Ball Sports Vict oria had an operating surplus of $11,217, however, in the year 2012, the company had a drastic change as the level of expenses increased with respect to the level of income and therefore the company had an operating deficit of $32,176. The company was unable to create any surplus and therefore it is essential for the firm to increase their income from various other sources as well. The analysis of the equity statement has even revealed that the accumulated surplus balance as on 30/06/2011 has been 27,184 but owing to the operating deficit in the year 2012, there has been an accumulated deficit of $4993. Thus, it can be said that the company has faced a significant amount of cash flow pressure, which has led to rise in their risk and therefore the company needs to improve their risk assessment process thereby improving the financial position of the firm. There are various matters of concern that requires to be addressed in order to improve the financial position of the firm. It has been observed that the level of income has not increased with respect to the level of expenses. The company is mostly dependent on the membership fees that are gained from the members. Thus, it is essential for the company to undertake various events and programs from which the company can increase their level of income. Ball Sports Victoria requires to create a relation with the local authorities so that new and event can be coordinated in an effective manner. In case of any events, the registrations should be undertaken from beforehand giving the members sufficient time to apply for the event. The analysis of the financial statement of Ball Sport Victoria has revealed that the company requires to increase their level of income in order to cope with the expenses and even needs to undertake new and improved strategies that can improve the operations of the firm and lower the cash flow pressure. The increase the income would lead to improvement in the services to the members and the clubs, construction of growth programs to the juniors, improve the resources for the officials and coaches and build their own event. The main motive of Ball Sports Victoria is to increase their operating surplus in order to increase their returns. The analysis of the financial statement of Ball Sports Australia can be explained as an unsettled one and therefore the company with the help of new and improved strategies can bring in positivity in the future financial statements. Bibliography Beatty, A. and Liao, S., 2014. Financial accounting in the banking industry: A review of the empirical literature. Journal of Accounting and Economics, 58(2), pp.339-383. Brggemann, U., Hitz, J.M. and Sellhorn, T., 2013. Intended and unintended consequences of mandatory IFRS adoption: A review of extant evidence and suggestions for future research. European Accounting Review, 22(1), pp.1-37. Filip, A., 2016. Discussion of Do Reviews by External Auditors Improve the Information Content of Interim Financial Statements. The International Journal of Accounting, 51(1), pp.51-56. Van Auken, H. and Carraher, S., 2013. Influences on frequency of preparation of financial statements among SMEs. Journal of Innovation Management, 1(1), p.143.