FLYBE Group PLC-introduce this company, and as an investor, why i invest this company (the potential returnof this company)简介这个公司、及作为投资者为什么要投资这家公司（这家公司潜在的投资回报）   200-250

Main body

第一段first paragraph：

Financial performance-by various of ratio（return on assets, return on equity, profit margin, assets turnover, profit/equity, debt/equity）来分析

Liquidity-return on assets, return on equity, receivable and payable….

Solvency偿付能力—用来支付所有到期债务和承担未来责任的能力

Investor returns—PE来分析是否有投资价值

（要搜到全面的ratio可以百度百科。。。）

第二段second paragraph：

Operating lease capitalization—-effect the ratios—the change of ratios —influence the performance（通过该公司5年内的report中的ratios的变化来分析）

第一段和第二段一共1000字

第三段thrid paragraph：300-400

Argument—the different views of lenders and shareholders(必须包含must include literature review)

Discuss possible reasons for the delay in revising IAS 17

Conclusion:

Should you invest in your chosen company? 200-300

Accounting Name

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Accounting

The paragraph should evaluate the return on shareholders’ equity as well as historical and projected performance of the FLYBE Group PLC Stock in the London Stock Exchange. The return on equity and capital structure of the company should be analyzed in order to evaluate its leverage level. The shareholders return and capital structure will inform the view that the lenders and the shareholders will have on the company. The part should also evaluate the performance of the company as compared to its pears using the yahoo finance or Google finance industrial databases. The view of shareholder and lenders can also be sourced from financial publications, such as financial journals, newspapers and credible websites. Some of the recommended sources that will be useful in the evaluation are given in the recommended-references part.

The IAS 7 has prescribed the appropriate accounting disclosures and policies that lessees and lessors apply in relation to the leases. There is delay in changing this standard possibly driven by the fact that the proposed lease accounting raises controversies. The new proposal approach suggests that lessee will have to recognize the assets that represent its right to make use of the leased items for the entire lease term as well as liability for its rental payment obligation. On the lessor’s side they will use recognition approach when the item transfers risk and performance obligation approach when it does not. As such the delay in changing the standard may be due to

1. The proposed new approach can bring about excessive burden and complexity to the prepares and it may fail to enhance the usefulness and quality of financial information
2. There was no extensive cost benefit analysis taken before proposing the change which means that the increment in the prepares cost is not factored in
3. Lease accounting should not be taken as the board’s priority because users do not consider it as so and because of financial crisis
4. Using the new approach, the prepared financial statements will not give accurate reflection of how management manages the company this is because a company can take a lease to benefit from the degree of flexibility without taking into consideration the related risks
5. The proposed approach may raise conceptual queries such as whether the right to use the lease item meets the recognition requirement given that it cannot reliably measured or if the rent paying obligation meets the liability definition at the commencement date

Proposed Reference List

FLYBE 2014. Investors Home.Accessedfrom http://www.flybe.com/corporate/investors/

Button, K. (2005). A simple analysis of the rent seeking of airlines, airports and politicians. Transport Policy, 12(1), 47-56. Accessed from http://www.sciencedirect.com/science/article/pii/S0967070X0400040X

Smith, S. Leadership & Management in the Air Travel Industry.Accessed from http://www.pass.brad.ac.uk/case-studies/13-exeter-flybe-evaluation.pdf

Dobruszkes, F. (2006).An analysis of European low-cost airlines and their networks. Journal of Transport Geography, 14(4), 249-264.Accessed fromhttp://www.sciencedirect.com/science/article/pii/S0966692305000566

Appendix

Dobruszkes, F. (2006). An analysis of European low-cost airlines and their networks. Journal of Transport Geography, 14(4), 249-264.

The article reveals that FLYBE represents a good investment opportunity for the investors who want to invest in low-end market, which has high risk.

Button, K. (2005). A simple analysis of the rent seeking of airlines, airports, and politicians. Transport Policy, 12(1), 47-56. Accessed from http://www.pass.brad.ac.uk/case-studies/13-exeter-flybe-evaluation.pdf

The article evaluates Flybe based on the PESTEL analysis and reveals that it relies more on equity but its capital structure has been changing over the time due to global financial pressure. However, the
company’s balance sheet it stable in the eyes of the creditors.