Sustainability and Management Accounting

Recently Fiji Airports Limited (FAL) received an award for reducing its carbon emission. This is a huge achievement for a Pacific Island Nation to achieve such award by the Airports council international.

Required

Search the Internet and document FALs journey in achieving this award.

Your assignment will be in two parts:

PART A will highlight the following areas:

1. Brief Background information on FAL.
2. Brief outline of the award clearly specifying the performance criteria.
3. FALs history in achieving the award and clearly specifying the different levels of the award that AFL has achieved.
4. Your recommendation on what FAL can do to achieve the highest level of accreditation.

PART B will highlight the Performance measurement tools

5. Download the latest FAL annual report (2017) from website and calculate the following ratios for 2017 and 2016 (show all workings):
   1. Return on Sales
   2. Investment turnover
   3. Return on Investment

Comment on the financial performance of FAL over the two-year period.

[Note: When calculating these ratios, the investment centre manager of FAL is responsible for decisions about all of the assets of FAL, including non-productive asset and profit is defined as after tax.]

6. Design a Du Pont chart for FAL and outline the usefulness of this chart to measure performance. The lag and lead indicators must clearly reflect FALs operation. General lag and lead indicators are NOT acceptable

7. Design an appropriate performance measurement tool you have learnt in AF201 to measure FALs financial, non-financial and sustainability performance and outline its usefulness in rewarding bonus to its employees.

The tool must clearly reflect FALs operation. General indicators of performance are unacceptable.