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David answered on
Dec 27 2021
GM586 Case Analysis Template
Running Head: FINANCIAL ACCOUNTING 1
Subject code and Subject Name: ACCY801: Accounting and Financial Management
Submission Type: Online
Assignment Title: Business Report-JB-Hi-FI Limited
Family Name: ……………………………………………………………..
First Name: ………………………………………………………………..
Student Number: ……………………………………………………..
Contact Number: ……………………………………………………
Email: ………………………………………………………………………
Financial Accounting 2
Table of Contents
Introduction ..................................................................................................................................... 3
A Brief Summary of Selected Company ........................................................................................ 3
Board of Directors Details .............................................................................................................. 4
Characteristics of Board of Directors ............................................................................................. 5
Evaluate Investment or Financing Decisions .................................................................................. 6
Corporate Governance Statement ................................................................................................... 7
External Audit Function .................................................................................................................. 7
Level of Ethics and Ethical Judgments ........................................................................................... 8
Investors of JB-Hi-FI ...................................................................................................................... 9
Analyse the Financial Statements of JB Hi-Fi Limited ................................................................ 10
Conclusion & Recommendation ................................................................................................... 11
References ..................................................................................................................................... 12
Appendix: Ratio Analysis ............................................................................................................. 14
Financial Accounting 3
Introduction
JB Hi-Fi Limited selects in this business report to assess the company’s key issues
elating to accounting and financial management and recommends appropriate solutions to deal
with the identifies issues. This paper applies principles of the accounting and financial
management to analyze the company’s control on the financing sources. This paper analyses the
accounting and financial environment of JB Hi-Fi to evaluate its important investment or
financing decisions in terms of ethics. This paper analyzes JB Hi-Fi capital structure, financing
structure, corporate governance, business operations, and financial performance. It also presents
the facts related to top five investors and details of the Board of Directors. This paper identifies
weakness and issues related to internal and external financial reporting and provide
ecommendations for improvement in financial decision making. This paper uses the key ratios
to assess the JB Hi-Fi’s cu
ent liquidity position, efficiency, leverage, profitability, market
value, and cash flow management. Moreover, this paper analyses JB-Hi-FI Limited accounting
and financial decision making to ensure that its business operations ethical or not. This paper
critically evaluates the internal and external financial reporting to identify issues and
ecommends appropriate solutions to incorporating ethical judgment and follows the corporate
governance.
A Brief Summary of Selected Company
John Ba
uto was established JB Hi-Fi Limited in the Melbourne subu
of Keilor East in
1974. It is fast growing retail firms that related to the retail industry. It is targeting Australia and
New Zealand market through providing a wide range of products such as video games, Blu-ray
discs, CDs, DVDs, hardware, electronics, and large home appliances. JB purchased the
Queensland Clive Anthony chain of stores in July 2004 that cu
ently selling cooking appliances,
air-conditioning, consumer electronics and goods. This acquisition has been converted into JB
Hi-Fi HOME stores there people find anything that improved JB Hi-Fi position in the market.
Now cu
ently, JB Hi-Fi stores are also offering the several electronics goods such as Computers,
Tablets, Speakers, Car Sound, Portable Audio player, TVs, Home Theatre, Cameras, and others
(JB HI-FI, 2017). JB Hi-Fi are offering best
ands and huge range products at cheapest prices
and convenient locations, but also focused on most important human resource through retain
experienced specialist staff. JB Hi-Fi is also focused on upgrade and maintains its IT
infrastructure and system to accomplish the business goals. Jb Hi-Fi main activities are selling
Financial Accounting 4
etail products and consumables goods. JB Hi-Fi has achieved total profit of A$ 152.2 million
that was enhanced by 11.5% and revenue/sales of A$ 3.95 billion that raised by 8.3% in 2016
comparison of the past year (JB HI-FI, 2016). More than 10% profit growth and sufficient sales
growth (more than 8%) indicated the strong recent financial performance of the company. JB Hi-
Fi cu
ent market capital is around 2,583 and it is dominating home appliances (29% market
share) and customer electronics markets (24% market share) with approx $900 million deals in
these segments (ABC, 2016).
Board of Directors Details
JB Hi-Fi Board of Directors
Name Post Gender Education Remuneration Career History
Board
Relationships
Greg
Richards
Chairman
Non-
Executive
Director
Male B.Ec (Hons) A$290,000 He had over 25 years
experience in the
investment banking
industry. He was an
equity partner for 17
years and working
primarily in equity
capital markets.
He is
connected to
10 board
members in 2
different
organizations
across 2
different
industries.
Beth
Laughton
Non-
Executive
Director
Female B.Ec,
FAICD,
FCA
A$166,093 She has over 25 years
in corporate finance,
providing mergers and
acquisition advice and
a
anging equity
funding for companies
specialty retail
She is
connected to
22 board
members in 8
different
organizations
across 12
different
industries.
Richard
Uechtritz
Non-
Executive
Director
Male A$130,000 He has over 20 years
experience in retailing.
He is
connected to
26 board
members in 4
different
organizations
across 4
different
industries.
Wai
Tang
Non-
Executive
Director
Female BAppSC,
MBA,
GAICD
A$115,201 She also serves as a
Non-executive Director
of Kikki K and the
Melbourne Festival.
She is
connected to
23 board
members in 5
Financial Accounting 5
She has extensive retail
industry experience and
knowledge gained
through senior
executive and board
oles.
different
organizations
across 9
different
industries.
Richard
Mu
ay
Group
Chief
Executive
Officer
and
Executive
Director
Male B.Comm,
CA,
GDipAppFin
(Sec Inst),
ASIA
A$2,750,596 He is a Chartered
Accountant with over
20 years’ experience in
etail and finance.
He is
connected to
6 board
members in a
different
organization
across a
different
industry.
Stephen
Goddard
Non-
Executive
Director
Male MSc, BSc
(Hons)
A$156,0000 He has more than 30
years’ retail experience
having held senior
executive positions with
some of Australia’s best
known retailers.
He is
connected to
4 board
members in 4
different
organizations
across 5
different
industries.
Mark
Powell
Non-
Executive
Director
Male BSc (Hons),
MSC, MBA
(Distinction),
B App.
Theol, MA
(Hons)
A$45,044 He has over 25 years’
executive experience in
etail, logistics and
wholesale distribution
in the UK, Spain, North
America, Australia and
New Zealand.
He is
connected to
11 board
members in 2
different
organizations
across 4
different
industries.
(Sources: JB HI-FI, 2016; Dow Jones & Company, Inc, 2017; & Bloomberg L.P, 2017)
Characteristics of Board of Directors
The above table outlines details of the JB Hi-Fi Board of Directors that presents the
cu
ent position, experience and characteristics of...