Acccounting Analysis

Key Accounting Policies

Inventory is measured at value of selling price less cost of sell Plant and equipment are stated at cost less accumulated depreciation and impairment indicate that the carrying amount may not be recoverable. Provision is present value expected future cash flows, at a pre-tax rate of risks and uncertainties surrounding the present obligation at reporting date. Revenue is recognised when a reliable amount of revenue measured at the fair value of the consideration received or receivable. Goodwill life are not subject to amortisation and are tested annually for impairment. Impairment losses recognised for goodwill are not subsequently reversed Trade receivables recognised at amortised cost less provision for impairment

Accounting Analysis
Accounting Strategy
Flexibility accounting policies according to Australian Accounting Standard compliance with International Financial Reporting Standard

Accounting Disclosure
Following the international standards which is currently issued and will be adopted in following years.

Acccounting Analysis
Comparison of key accounting to Harvey Norman
Both companies have overall similarities in key accounting policies because they comply with the international accounting standard Because there are some differences in the business model, scale and the products they implied the policies differently in some categories:
Harvey Norman mentioned that building and plant & equipment owned and leased can be depreciated except land while JB Hifi did not saparate type of plan & equipment. JB Hifi recognised Sales Revenues as a risk transferred to the buyers (at point of sales) while Harvey Norman considered Sales as a payment transferred. Besides, Rental and Lease income is also recognised by Harvey Norman as Revenues.