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BUS103_T3_2019_Assessment_3 Page 1 XXXXXXXXXXKaplan Business School Assessment Outline Assessment 3 Information Subject Code: BUS103 Subject Name: Accounting for Managers Assessment Title: Company’s...

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BUS103_T3_2019_Assessment_3

Page 1 XXXXXXXXXXKaplan Business School Assessment Outline
Assessment 3 Information

Subject Code: BUS103
Subject Name: Accounting for Managers
Assessment Title: Company’s Annual Report
Assessment Type: Individual Written Report
Weighting: 20 %
Total Marks: 20
Submission:
Individual Submitted via Turnitin in MyKBS
Written Report
Due Date: Monday of Week 11 at 3:55 pm AEST (Written Report)
Your Task
Your instructor will assign you one of three Australian retail companies that are listed on the Australian Securities
Exchange (ASX) as follows: Myer, Harvey Norman, JB Hi Fi Limited. You are required to obtain the 2019 Annual
Report for the company you have been assigned to work on. You must answer all questions in Part A and B using
the 2019 Annual Report of your company.
Assessment Description
This assignment is designed to get you to locate the Annual Report for a company and become familiar with its
contents, particularly the financial statements and the notes to the financial statements (LO 2 and 3). While we
have looked at very basic formats of the financial statements, the financial statements for a company contain much
more detailed information much of which you have not been introduced to yet. Pay attention in the Annual Report
to the information provided in the notes to the financial statements as you will find a lot of useful information in
them that may help with some of the assignment questions.
The schedule for the assignment is given:
Week 3 Your lecturer will allocate you one of the companies mentioned above, using the random
process.
Week 6 Discussion and overview of Part A of the assignment and marking ru
ic.
Week 7 Discussion and overview of Part B of the assignment
Page 2 XXXXXXXXXXKaplan Business School Assessment Outline
PART A – THE COMPANY REPORT (Refer ru
ic below for marking guidance)
Question 1
Describe the principal activities of the company? (1 mark)
Question 2
Define the revenue recognition criteria of the company and identify the page number and note number where
this is stated in the annual report? (1 mark)
Question 3
Describe how the company values all classes of property, plant and equipment? Identify the page number and note
number where this is stated in the annual report? (3 marks)
Question 4
Name the Audit firm responsible for performing the audit of the financial statements of the company. Explain why
the auditor must declare their independence, and also explain why the financial statements must be audited by an
external party. (3 marks)
Question 5
Provide any evidence of the company’s initiative or commitment to business sustainability practices. Why are
usinesses concerned about sustainability? (2 marks)
PART B ‐ ANALYSIS OF COMPANY’S FINANCIAL INFORMATION
Question 1
Using the company financial information, analyse and compare their 2018 and 2019 financial data by answering the
following questions (you should analyse 2 ratios for each question):
A. Calculate the efficiency of the company by identifying and calculating two efficiency ratios. You need to calculate
the two ratios for 2018 and XXXXXXXXXXmark).
B. You must also explain what the efficiency ratio results tell us about the company performance occu
ing
etween the 2 periods (1 mark). Has the company’s efficiency improved or deteriorated? (1 mark)
C. Analyse the profitability of the company by identifying and calculating two profitability ratios. You need to
calculate the two ratios for 2018 and XXXXXXXXXXmark).
D. You must also explain what the profitability ratio results tell us about the company performance occu
ing
etween the 2 periods. (1 mark) Has the company’s profitability improved or deteriorated? (1 mark)
E. Analyse the company debt position by identifying and calculating two ratios. You need to calculate the two ratios
for 2018 and XXXXXXXXXXmark).
F. You must also explain what the debt ratio results tell us about the company performance occu
ing between
the 2 periods. (1 mark). Has the company’s debt position improved or deteriorated? (1 mark)
Page 3 XXXXXXXXXXKaplan Business School Assessment Outline
Part A Assignment Ru
ic: 10% The Company report
Components High Distinction
85 – 100%
(Marks 8.5 to
10.0)
Distinction
75 - 84%
(Marks 7.5 to
8.49)
Credit
65 – 74%
(Marks 6.5 to
7.49)
Pass
50 – 64%
(Marks 5 to 6.4)
Fail
0 – 49%
(Marks 0 to 4.9)
Mark
Awarded
(Out of 10)
Written
Report
Technical
content
10%
The report
clearly
identifies and
addresses all
the technical
issues raised
& provides
clear, co
ect
& decisive
answers
displaying an
outstanding
understanding
of each of the
questions.
The report
clearly
identifies and
addresses
most of the
technical
issues raised
y your
investigation
and provides
clear, co
ect
and decisive
advice
displaying a
good
understanding
of most of the
questions
The report
clearly
identifies
and
addresses
some of the
technical
issues raised
y your
investigation
and provides
easonably
clear,
co
ect and
decisive
answers.
The report
identifies and
addresses
some of the
issues raised
y your
investigation
and provides
fairly clear,
ut not
always
co
ect
and/or
decisive
advice.
The report does
not identify or
address the
questions.
It displays a lack
of understanding
of some or most
of the issues
aised.
Referencing
Referencing Referencing Referencing Referencing Referencing
is co
ect is co
ect is almost has some is not co
ect
throughout throughout all co
ect inaccuracies in many cases.
Page 4 XXXXXXXXXXKaplan Business School Assessment Outline
Important Study Information
Academic Integrity Policy
KBS values academic integrity. All students must understand the meaning and consequences of cheating, plagiarism
and other academic offences under the Academic Integrity and Conduct Policy.
What is academic integrity and misconduct?
What are the penalties for academic misconduct?
What are the late penalties?
How can I appeal my grade?
Click here for answers to these questions:
http:
www.kbs.edu.au/cu
ent-students/student-policies/.
Word Limits for Written Assessments
Submissions that exceed the word limit by more than 10% will cease to be marked from the point at which that limit
is exceeded.
Study Assistance
Students may seek study assistance from their local Academic Learning Advisor or refer to the resources on the
MyKBS Academic Success Centre page. Click here for this information.
http:
www.kbs.edu.au/cu
ent-students/student-policies
http:
www.kbs.edu.au/cu
ent-students/student-policies
http:
www.kbs.edu.au/cu
ent-students/student-policies
http:
www.kbs.edu.au/cu
ent-students/student-policies
http:
www.kbs.edu.au/cu
ent-students/student-policies
http:
www.kbs.edu.au/cu
ent-students/student-policies
https:
elearning.kbs.edu.au/course/view.php?id=1481
https:
elearning.kbs.edu.au/course/view.php?id=1481

ANNUAL REPORT
2019
F
o
p
e
so
na
l u
se
o
nl
y
Financial Summary
JB Hi-Fi Limited ABN XXXXXXXXXX
Sales $7.10
NPAT $249.8m Stores
EBIT $372.8m
FINANCIAL PERFORMANCE
2015
Statutory
2016
Statutory
2017(i)
Statutory
2017(i)
Underlying(ii)
2018
Statutory
2019
Statutory
Growth
Underlying
Sales $3.65b $3.95b $5.63b $5.63b $6.85b $7.10b 3.5%
EBIT $200.9m $221.2m $268.2m $306.3m $350.6m $372.8m 6.4%
NPAT $136.5m $152.2m $172.4m $207.7m $233.2m $249.8m 7.1%
Earnings per share 137.9cps 153.8cps 154.3cps 186.0cps 203.1cps 217.4cps 7.1%
Total dividend - fully franked 90.0cps 100.0cps 118cps 118cps 132cps 142cps 7.6%
(i) JB Hi-Fi acquired The Good Guys on 28 November 2016, all amounts disclosed for the 2017 fi nancial year include The Good Guys for the period
under JB Hi-Fi ownership.
(ii) Underlying results exclude transaction fees and implementation costs totaling $22.4m associated with the acquisition of The Good Guys in
November 2016 and $15.8m of fi xed asset and goodwill impairments in New Zealand.
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
$200.9m
$5.63b(i)
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
187
303
$136.5m
$3.65
$3.95
$152.2m
194
$221.2m
$306.3m(i)(ii)
$207.7m(i)(ii)
$6.85
311
$350.6m
$233.2m
$7.10b $372.8m
$249.8m
315
F
o
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1
Dear fellow shareholder,
FY19 has been a strong year for JB Hi-Fi Limited. It is very
satisfying to report that the year ended 30 June 2019 was
another record year with sales, profits and dividends all up on
the prior year. The 2019 result was driven by a combination of
sales growth and our low cost of doing business, underpinned
y our ongoing emphasis on customer service.
Group Overview
JB Hi-Fi Limited and its subsidiaries (the “Group”), comprises
two leading retail
ands: JB Hi-Fi, with a focus on Technology
and Consumer Electronics; and The Good Guys with a focus
on Home Appliances and Consumer Electronics.
The value proposition for each
and centres around ranging
the best
ands at low prices supported by exceptional
customer service across our 315 store network, online offering
and through our commercial channels, JB Hi-Fi Solutions and
The Good Guys Commercial.
The dual
anded retail approach
Answered Same Day May 25, 2021 BUS103

Solution

Charanjeet answered on May 26 2021
153 Votes
Part – A
1. The principle activity of the business is retailing of home consumer products. The main focus of the company is on consumer electronics, software (including music, games and movies), white goods and appliances. The company provides a variety range of
ands for these commodities.
2. The revenue is recognized when the amount of revenue can be measured reliability and it is probable that the future economic benefit will flow to the entity. In case of company when sales or service performance obligation is fulfilled and control/of goods has been transfe
ed i.e. delivery of goods/services is done revenue is recognized. In case of gift cards and store credits when the customer redeem the gift card or store credits and obligation of sales is performed by the company revenue is recognized. In considering revenue recognition proper consideration is given on probability of returns on the basis of historic data.
This criterion is provided on page no. 97 and note number 29 (a) Revenue Recognition.
3. Property, plant and equipment are valued at cost less accumulated depreciation and impairment. The cost is used which is directly attributed to particular asset at the time of acquisition i.e. cost plus direct expenses.
Method of Depreciation: Straight line method of depreciation and the property, plant and equipment to its residual value by writing off the cost of asset according to its expected useful life.
Impairment Test: The impairment test is conducted on plant, property and equipments when there are circumstances and evidences that ca
ying amount may not be recoverable. Then book value is compared with recoverable value which is higher of value in use or fair value less cost to sell. The Cash Generating units are used for impairment purpose.
Calculation on sales or disposal: Asset is derecognized when it is disposed off and it is probable that no future economic benefits arise from it. The difference between sales proceeds and ca
ying value is reflected by way of either profit or loss in income statement.
This is stated at page number 78 and note no 10(a) Recognition and measurement under heading Plant and Equipment.
4. The audit of financial statements is performed by Deloitte Touche Tohmatsu Limited and the CA is Travis...
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