This Report Has Been Written To Analyse The Financial Statements

Better Essays
This report has been written to analyse the financial statements of the theme park Dream world and discuss the observations. In order to achieve this, the financials for the year 2016 has been compared with the financials of previous years to ascertain the changes in the operational activities. Dreamworld is the biggest theme park in Australia and is a part of Argent Leisure group. The financial statements procured are of Argent Leisure group and Dream world is only a segment of it. It has been observed that the company had an overall profit of 9% during the year 2016 with an Earnings Per Share of 9.37(cents). Although there was a negligible decline in profit of 0.38% as compared to last year despite the increase in revenue. Major…show more content…
The only exception to this is Research and Development expense where Development expenses are internally generated and can still be recognised as Intangible Assets . Argent Leisure - Intangible Assets 2016 2015 (in 000 's) (in 000 's) Customer Relationships 2,202 5,549 Brands 5,715 6,766 Other Intangible Assets 10,179 5,477 Goodwill 228,033 225,152 Total Intangible Assets 246,129 242,944 Argent Leisure (comprising Dreamworld) has 3 main types of Intangible assets apart from a group of other intangible assets, a part of which get amortised every year. These intangible assets are customer relationships, brands and goodwill. Goodwill covers 92.64% of the total intangible assets as on 2016 with an increase of 1.28% from 2015. Goodwill here represents the goodwill acquired by the group through acquisitions of other companies and is subject to impairment test every year. The increase during the period of 2016 is negligible as there were $27.6m(approx.) worth of additions in goodwill during 2015, whereas the additions in 2016 were only $857k. No goodwill was impaired during the year. Goodwill related to theme parks was $4.37m for both 2015 and 2016 indicating no additions or impairment in both years. Other intangible assets comprise of registered trademarks of Dreamworld and licences related to other business units of the group. With a total increase of 85% in 2016, other intangible assets
Get Access