Analysis of Financial Statment

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1.0 INTRODUCTION
I always have the desire to be an academic graduate because my family treasured education so much. One of the major criteria for having a BSc (Hons) degree after ones name is by demonstrating the highest degree of academic excellence and undertaking to write and submit a dissertation on a selected topic. I am fortunate to be accorded such an opportunity through ACCA/Oxford Brooke partnership degree program.

1.1 Topic selection
The topic I selected for the RAP is the evaluation of the business and financial performance of a company over a three year period. I therefore choose British airways to base my analysis and evaluations on a three year period effective 1st April 2007 to 31st March 2009. The reason for choosing this very important topic is that, it will broaden and nurtured the already acquired knowledge gained from my earlier studies in accountancy. It will also help me perform in my area of responsibilities as one of my key functions with my present employer involves financial analysis and evaluation.

1.2 History of British Airways.
British Airways is one of the world’s leading scheduled international passenger airlines. There principal place of business is Heathrow, one of the world’s premier airport locations, which serves a large geographical area with a comparatively high proportion of point-to-point business. They also operate a worldwide air cargo business, largely in conjunction with their scheduled passenger services. British Airways operates one of the most extensive international scheduled airline route networks, with their code share and franchise partners, they fly to more than 300 destinations worldwide. In 2007/08, they carried more than 33 million passengers. British Airways was created in 1972, when the British Overseas Airways Corporation (BOAC) and British European Airways Corporation (BEA) managements were combined under the British Airways Board. This effectively made British Airways into a national airline for the United Kingdom and due to the lack of competition; the new company began to exert its position and significance. The national flag carrier was privatised and was floated on the London Stock Exchange in February 1987 by the Conservative government under the chairmanship of Sir John King. In July 1987, British Airways made a controversial takeover of Britain's "second" airline, British Caledonian. During the 1990s, British Airways became the world's most profitable airline under the slogan "The World's Favourite Airline". During the 1990s, British Airways became the world's most profitable airline under the slogan "The World's Favourite Airline". In January 2008, British airways made a series of mergers and acquisition under CEO Willie Walsh, such as Open skies and the merger with Iberia in July 2008 the Spanish giant, the merge plan was each company will retained their separate brand and identity. OpenSkies a subsidiary of the British airways took advantage of the liberalisation of transatlantic traffic rights, and flies non-stop flight between major European cities and the United States which made BA very profitable. They also operate in the Far East and Africa. (Wikipedia, 2010)6. 1.3 Aims and objectives

As part of fulfilling the degree requirement of the Oxford Brooke/ACCA partnership degree programme, it is mandatory for candidates to submit a RAP comprising of research report and skill and learning statement in order to be awarded a BSc (Hon) degree in applied accounting. Also as a professional accountant and the nature of my role within my organisation (management Accountant), I thought it is fitting to undertake such topic to satisfy both my academic and professional requirements. I choose to undertake the research analysis project in the United Kingdom as there are so many companies available to choose from and information about such companies are readily available in the public domain.

The aim of the project is to analyse and evaluate the business...
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