Report Summary

Report Summary

The company that I have been given is REA Group. I have enjoyed finding out more information about this company and was very appreciative that I was given this company. REA Group is an online advertising agent, specialising in property and I enjoy learning about the real estate industry.

Whilst reading through the report, there were many things that I came across. It was mostly words and phrases as I understood most of the figures after looking at the notes, which explained what the numbers meant.

Please feel free to have a look at my blog and give me any feedback.

I had difficulty in understanding what the following terms meant:

·        Equity settled share-based payments

·        Tax consolidated group

·        Non-derivative financial assets

If anyone has any idea what these mean or have come across these terms before, please comment below so I can have a better understanding.

Areas of business that seem most important or critical:

·        Goodwill seems to be important to the business, although I do not understand how you can value an intangible asset such as good will. How does it increase and decrease?

·        Key growth drivers increased take-up listing depth products – this seems important to the business as it has increased by 49% but I am still unsure of what it means.

·        Maintaining the level of competitiveness also seems important to the business. They are aware that developing technologies and enhancements can put the business at risk.

Challenges the firm is facing and how successful it appears to be meeting these challenges and its apparent strategy.

·        Trade debtors/receivables increased throughout the year. This is something that the group takes very seriously, although, to meet this challenge, REA Group has implemented that trade debtors/receivables are to pay their account within 15-30 days of the incurred amount.

·        Another challenge that was apparent when reading through the financial statements was market demand for longer-duration commercial listing depth products. From my understanding, I gather that customers require more time for their properties to be advertised (90-360 days) which has resulted in more revenue deferred into the 2014 financial year. To date, there are no apparent strategies in place, although the business did grow 23% throughout the year on a cash basis.