Question 1

Singapore Airlines (“SIA”) is the flag carrier of Singapore. It is one of the world’s most admired companies and has consistently topped airline and travel industry awards. This impressive track record makes Singapore Airlines stand out among other airlines. It promises to provide travellers an efficient and enjoyable journey, and to maximise returns for the benefit of its shareholders and employees.

In his letter to the shareholders in the SIA’s annual report for 2017/18, Mr Peter Seah, the chairman of SIA group wrote, “Singapore Airlines recognized the need to reposition the Group to face the challenges of the industry as the global competition intensified”. In fact, the Group in its operating review painted a very challenging future when the “Group continues to face intense competition in key operating markets and cost pressures” as well as “geopolitical uncertainties which may affect global trade”, thus, dampening the outlook for its business.

Source: Singapore Airlines Limited, Annual Report FY2017/18

Required:

(a) Define management accounting and outline the major processes that management accounting systems can use to help SIA create value and manage resources so as to face the challenges of the industry. (Not more than 600 words)