Case Study

capital is presented separately, the consolidation financial statements are prepared for the parent and subsidiaries entity, property, plant and equipment are presented in the balance sheet at cost less accumulated depreciation and impairment. Further, standards that applied to income tax and impairment of assets are used. The main incomes of the airport come from aeronautical services, retail business, car parking services, and security.

Environment is defined as organisation's external factors which may affect businesses present or future performance (Kew & Stredwick, 2005, p.2 2005). Businesses develop foresight to judge and to be aware of the context around the problems that challenge the industry. Being proactive will assist Melbourne Airport to prepare for unseen external challenges. In order for a business to grow and cope up with environmental change it's vital to be proactive and plan the future (Kew & Stredwick, 2005, p.3 2005).One of the popular methods used in analysing environmental factors is PEST (political, economical, social, and technological) (Paper for You, 2012). It is a tool to determine the various factors in a potential industry environment to estimate its suitability for the enterprise at hand (Buzzle .com, 2011).

Political

Political factors deal with the degree to which the government influences and controls businesses. In relation to Melbourne Airport the most common issue is a changing regulation on pollution or noise which is created airlines. Safety controls, terrorism, and less political borders are also considered as political factors of airlines (Volker, 2008, p.4).

Economical

Economic factors are very important to airline industry.