Acct102 Managerial Accounting Oz Assignment

Acct102 Managerial Accounting Oz Assignment

Acct102 Managerial Accounting Oz Assignment

Part 1 

1. Over the last few years does JB Hi-Fi Limited current liability have increased or decreased? State the classes that are recorded under the liability under the classification of “Current Liability”?

 There are some key factors of the financial statement that helps to identify the position and ability to generate profit or loss of the organisation. This type of financial statement displays all the transaction and other expenses that used for the financial year. In this regards, every organisation would analysis the financial position in the international market of the financial year. However, the financial report of JB Hi-Fi limited shows that current liability has increased for 2013 as compared to the year 2012. About $2.9 M has been increased in 2013, improve the financial position in the international market (jbhifi.com.au, 2013).

In the financial year 2012, the total amount of current asset was $ 439.39, while the liability in 2013 was $442.38. After analyzing the financial statement of the company, at high rate current liability have increased as compared to another firm in the market. Accrued payroll, accounting payable, income tax and other types of flexibility are some of the class related to current liability. Hence, with the help of the report, the condition of the financial report would identify the current liability of the firm.

2. State the major liability of the organisation at the end of the financial year?

From the viewpoint ofCarslaw & Mills(2014), long term and short term liability are some of the major liabilities of the concern organisation. These terms put the impact on the organization financial report to a large extent. For this reason, it required to manage and corporate the liability and operate the financial statement of the organisation according to the requirement. In this regards, JB Hi-Fi Ltd liability was accounting payable, debit deferred taxes and non-convertible debts that show in a financial statement. These are some of the major liabilities that are shown in the financial statement of the company. Therefore, identification of the major liability would deal with to operate the business in proper form.      

3. under the heading of “Provisions” in “Current liability “what are sections that are mentioned in balances sheet? Describe the nature that is mentioned under the items? Does this items satisfy under the provision of IAS 37/AASB 137? By what amount liabilities for employee benefits increased by the year

According toBerg & Kaserer(2015), provision is an expected profit that may get liable or the amount gets decreases from the valuation of the asset. It mainly helps to adjust the present year liability of provision with the cost record to determine the ultimate result for the current financial year.  Under the head of “Provision” depreciation, provision for bad debt, pension, employee benefits and other accrual provisions are included in it. Therefore, JB Hi-Fi Ltd, liability on employees benefits have increased from $35,111 in 2013 to $ 27, 802 (jbhifi.com.au, 2013). Standards IAS 37/AASB 137 mainly treated as the provision or contingent assets or liabilities of the organisation. This help to understand the items and provision for better measurement. Therefore, these items satisfy the provision related to employees’ benefits for the year-end.

4. At what amount does interest bearing loss have been raised in the financial year? How much does it can recover? How would the amount be compared with the previous year?

As perBrouwer & Hoogendoorn(2017), interest-bearing loss provides an extraordinary operating expense that constitutes the capital gain for bearing the loss for a firm. It refers to the loan that provides insight for delivery the future activities for managing the market plan and rate of interest as per the formulation goal.    As the financial report of JB Hi-Fi Ltd, a net flow of the cash is $ 156410 that related to the borrowing of the organisation. On the other hand, the previous year 2012, $215007 cash for the net transaction was generated for a year as per the plan. Therefore, concern firm quite to maintain the expenses as well as cash flow statement that required maintaining the borrowing that related to rate of interest of the firm. Hence, this required to manage the rate of interest in borrowing a loan and other factors that recover the amount of loan in proper form. 

5. Is any non-current liability secured or not?

For every organisation, noncurrent liabilities are subject to risk for the renowned organisation in the international market. As stated by Christoffersen, Evans & Musto(2013), there are some secured non- current liabilities that include floating securities, secured loans and some other factors related to a secured loan. In concern firm, all the borrowing related to balances sheet of the financial year were floating or fixed securities. In this order to this, it requires to manage and operate the risk factors to generate the factors for generating financial position in the international market. Therefore, current liabilities require managing the risk factors and controlling the liability for generating the plan.  

6. within 2 years, how much non -current borrowing are due, that required to be recovered within 2 years? Is it between 2 to 5 years or beyond 5 years?  

Within last two year, noncurrent borrowing the concerned firm required to manage the borrowing to reveal the financial situation of the market. In this regards, the amount that required to be paid $9.42 amount and remaining amount that would be payable within 2-5 years $ 23.35. This required recovering the management for getting noncurrent borrowing financial marketing plan. Therefore, the current borrowing required to plan and recovers the amount for planning the amount for an organisation plan. It analysis the financial data and manage the plan as per management plan accordingly.  

7. In the financial year are there any non current provisions? If yes, what are the general terms that represent in it?

As per the data provided, yes annual report of JB Hi-Fi Ltd shows details along with employees benefits shown for the amount $3747. There are two types non-current provisions like lease provision and employee benefits respectively. This helps the firm to achieve the goal by providing the detail information to generate the current provision in market plan. Noncurrent provision manages the provisions and presents the management plan for getting the financial marketing plan in a proper way. Therefore, concern firm quite to maintain the expenses as well as cash flow statement that required maintaining the borrowing that related to rate of interest of the firm.

Part B

1. In the income statement of Country Road Limited, the income tax expense are shows within the bracket. These types of expense are seen in the income statement of partnership or not? Briefly explain.

In partnership income statement, expenses items are not records in the accounting standards. This type of transaction or tax expenses is recorded in sole proprietorship firm. Hence, all the expenses related to tax and other factors are not placed in the income statement. As mentioned by Lowe & McInnes (2015), negative income statement of the organisation that is incurred with loss required to fixed cost or COGS for the financial year of the organisation. Therefore, this type of assessment would help to bear the expenses according to capital sharing profit and determine the decision related to the market share of the organisation. As mentioned by Morse (2017), the agreement before consulting and operating the expenses related to managing the capital share of an organisation. On the other consulting with other partners and communicating related to partnership accounting and managing for delivery the partnership account for the organisation. As per the report, County Road Limited that provide detail information for maintaining the transactions related to a partnership for calculating cash inflow and another outflow of cash that do not include partnership firm.

2. In the statement, equity related to retained earnings, what are the total profit available appropriation in partnership firm?  How would the allocation of total profit that is available in partnership for showing country road limited? Describe briefly the reason for differences?

After deducting dividend and net loss from accumulated earnings that helps to identify the profit available managing the partnership firm. As mentioned by Harris (2016 (2016), in a partnership firm partners are responsible for investing a part of capital in a business. In this regards, profit and loss accounts and profit and loss appropriation account are used for recording all the transaction of the partner. This mainly decided by the mutual understanding of the partners at what rate profit would distribute among each for them. In Country Road Ltd, allocation of profit mainly done on profit and loss appropriation account instead of profit and loss account (countryroad.com.au, 2013).

These types of a decision were taken by each partner and agreed with the condition for using profit and loss appropriation account for managing the profit of the firm. Profit and loss accounts show quantum surplus of the firm at the year-end, whereas profit and loss appropriation account generate the accurate transaction related of partnership firm only. However, the organisation required to manage the financial data and other detail information for managing the goal and maintain in a proper way. Partner of the organisation mutual takes decisions for understanding the plan and manage the financial statement of the firm. Therefore, the organisation has been maintaining the financial statement and records all the transactions in profit and loss appropriation account.

3. Using the balances sheet of the company “Country Road Limited” and refer the title “Issued capital”? State the differences that are quite typical in partnership? Explain?  

According to Florysiak & Goyal (2016), issues capital refers to the selling of stocks and investing the public stock for getting the asset to get the achieving the financial position in a proper way. It mainly states as the issued share capital as a part of the authorized capital that required to be maintained as per the requirement plan.  Hence, the issued capital has been replaced by the name of each partner's of the organisation. The amount mainly realized by the investing share capital for financial statement plan for developing the financial statement of the authorized capital funds. In this regards, issue capital required to identify the financial statement that required managing the existing partner financial statement plan. 

This required operating the management for raising the funds and selling the stocks to maintain the selling stock in the financial funds of the organisation. Hence, this provides funds and manages the existing partners that required to maintaining the funds and operate the funds in a different form. The concern organisation raised the funds for managing the financial year of the company. Hence, this would provide development based selling stocks to get a proper management plan for managing the funds of the firm. Therefore, the capital required to develop the balances sheet of the organisation in a different form.

4. Country Road Limited required drafting the cash flow statement including the annual financial statement? What is the typical partnership that required to prepare such type of statement? Is typical partnership for doing such statement with proper explanation?

Cash flow statement preparation for the partners as it helps to show the key indicators in managing the business operation like investing activities, operating activities in the statement. This help to determine the correct figure related to inflow and outflow of cash transaction within the firm. Therefore, the funds that have been increased in investor would excess to generate the profit plan in the different form of every transaction. If cash transaction for present income statement help to determine and investing and financial decision making of the firm. It helps to provide detail information as well each transaction related values for the organisation. Therefore, for generating a number of profit partners for the firm required to manage them and make a decision related to investing and financial decision making of the firm. Therefore, income statement does not provide accurate information related to the transaction for preparing the cash flow statement to a large extent. Therefore, each and every transaction required to generate the all the transaction for managing the detail information of the Country Road Limited. Hence, there are some importance of funding and maintaining the each and every transaction of the organisation in a proper and correct way.

References list
1. Berg, T., & Kaserer, C. (2015). Does contingent capital induce excessive risk-taking?. Journal of Financial intermediation, 24(3), 356-385.
2. Brouwer, A., & Hoogendoorn, M. (2017). The role and current status of IFRS in the completion of national accounting rules–Evidence from the Netherlands. Accounting in Europe, 1-13.
3. Carslaw, C. A., & Mills, J. R. (2014). Developing ratios for effective cash flow statement analysis. Journal of Accountancy, 172(5), 63-70.
4. Christoffersen, S. E., Evans, R., & Musto, D. K. (2013). What do consumers’ fund flows maximize? Evidence from their brokers’ incentives. The Journal of Finance68(1), 201-235.
5. Countryroad.com  (2017).Country Road | Women's, Men's & Kid's Clothing & Homewares. Retrieved 3rdNovember 2017, from :https://www.countryroad.com/?popupwsid=1 [Accesed on 3rd November 2017]
6. countryroad.com.au (2013). Annual_Report_2013.  Retrieved 3rdNovember 2017, from:  https://www.countryroad.com.au/images/assetimages/ASX/CRG_Annual_Report_2013.pdf [Accesed on 3rd November 2017]
7. Florysiak, D., & Goyal, V. K. (2016). Capital Market Access and Cash Flow Allocation during the Financial Crisis. 88-90.
8. Harris, D. (2016). Redeemable shares issued by hedge funds: a wrong turn in Cayman?. Law and Financial Markets Review10(3), 150-155.
9. jbhifi.com.au  (2013) annual report 2013.Retrieved 3rdNovember 2017, from:  https://www.jbhifi.com.au/Documents/Annual%20Reports/128_2013-09-13_5-05-43.pdf [Accesed on 3rd November 2017]
10. Jbhifi.com.au. (2017) JB Hi-Fi - Australia's Largest Home Entertainment Retailer. (2017).  Retrieved 3rdNovember 2017, from: https://www.jbhifi.com.au/ [Accesed on 3rd November 2017]
11. Lowe, E. A., & McInnes, J. M. (2015). Control in socio-economic organisations: a rationale for the design of management control systems (Section II). International Journal of Critical managerial Accounting7(5-6), 411-426.
12. Morse, J. (2017). Investigating financial sustainability and resilience factors in a non-profit organisation within an emerging market economy: A public accounting case study (Doctoral dissertation, University of Cape Town). 23-32.