ACCOUNTING QUESTIONS

Assessment

3 Assessment Type: Individual research assessment Purpose:

To allow students to apply the technical knowledge of relevant accounting standards to financial
reporting settings. This assessment relates to learning outcomes c, d.

Value: 30% Due Date: Week 9 - 8:00 pm Wednesday of Week 9

Submission: Submission must be made via the Moodle assignment link on the KOI Moodle ACC701 home
page by 8.00 pm AEST time on Wednesday of Week 9.

Topic: Reporting and Disclosure of Intangible Assets

Task Details: Each student is required to choose one ASX listed firm and analyse its financial statement
of the financial year ending in 2021. The analysis must focus on discussing the firm’s reporting and
disclosure practices on revenue. In the discussion, detail the accounting policy that the firm follows in
reporting, measuring and disclosing its revenue, and provide an analysis of accounting policies. The
discussion must evaluate the current accounting treatment for the recognition and measurement of
revenue under AASB15.

#Note that the chosen firm must NOT be in the mining or the banking industry.

Research requirements: Students need to support their analysis with reference to relevant material
from the textbook and minimum of eight (8) suitable, reliable, current and academically acceptable
sources - this should include at least 2 peer-reviewed academic journal articles.

Presentation: 2000 words (+/- 10%) short report format. Title page, executive summary, table of
contents, appropriate headings and sub-headings, recommendations/findings/conclusions, in-text
referencing and reference list (Harvard - Anglia style), attachments if relevant (as screenshots). Lines
should be single spaced, use either Times New Roman 12pt, Calibri 11pt or Arial 10pt font. .

Marking Guide:

Interpretation and representation 20%

Calculations 20%

Analysis 20%

Assumptions 20%

Communication 20% Total mark will be scaled to a mark out of 30 subject marks.
SUMMARY
The goal of this research is to evaluate the financial statements of an ASX-listed company, in this
instance Woolworths. In addition, the article investigates a case study relied on a coal mine and
discusses the measurement basis for asset retirement. The income reports of an ASX-listed company will
be studied first, with a full explanation of property and debt classifications, as well as the measurement
method used to group both. After that, there's a quick look at the company's Other Consolidated Income
and the significance of its classification on the Australian Stock Exchange.

Woolworths is owned by Woolworths Limited, Australia's largest supermarket food retailer. Woolworths is
a well-known Australian listed company with a stock exchange listing. Through its investors, this
organization, that works in the key commercial and industrial industries, has some permitted duties.
Because of its independent managerial strategies and processes, Woolworths has been able to give its
1.3 million customers with an uniform level of service, expenditure, and output across its franchised
locations across Australia Woolworths' leadership approach reflects its status as one of the world's largest
corporations. This study will discuss the scope and responsibilities of management in the context of
Woolworths. On December 5, 1924, the first Woolworths shop opened in Pitt Street, Sydney. In 1993,
Woolworths Ltd was made accessible to the public in the largest share float in Australian history,
prompting a 2.65 billion request from venture capitalist. Woolworths opened first ever "Green" store in
2007, using technology that reduced energy use, watering, and waste generation, and also the usage of
environmentally damaging products. In 2008, Woolworths began rebranding its grocery goods and stores
in Victoria as Woolworths. Finally, in 2022, Woolworths will celebrate their 98th birthday in the retail
business.

INTODUCTION

Ownership or management over a capital gain is what identifies it as a firm investment. Off-balance sheet
assets and liabilities are not recognized if they do not match the requirements for recognition. This
conservative concept states that if the fund's future financial value is questionable, this should not be
acknowledged. Assets are the things that a company owns or controls. The productive resale of products
is only one example of how it will pay out financially in the long run. Property would need to be moved in
the future due to a past occurrence. When a consumer owes an item or service for which they've
originally paid, a non-cash discharge of a responsibility occurs. If an investment is expected to deliver
future cash flow to its owner and its value can be accurately assessed, that is included in the income
statement. The three main characteristics of a duty are the transmission or use of property, as well as the
obligation or responsibility to the next party, if another event happens, such as a lost profits or a claim is
filed. When an asset or liability fails to fulfill the recognition requirements, it is classed as "off balance
sheet" and not disclosed. Unlike capital like stocks, the availability of a prospective stream of benefits
from marketing costs (for brand growth) is unknown. When the associated assets are not handled (for
example, leasing agreement assets, which will be discussed in a later episode) or when the status of the
debt is disputed, obligations are commonly neglected (such as a lawsuit legal action).

MAIN BODY
Woolworth Group Limited is a major Australian retailer with a wide variety of business operations in
Australia and New Zealand. It is Australia's largest income company and New Zealand's second-largest.
The corporation declared a loss of $1.235 billion for the 2015 fiscal year, the largest deficit in the
company's history, after more than two decades of being publicly traded on the ASX. This was a largely
owing to losses from the Big W organization and more over $2 billion in try borrowing from the defunct
Masterpiece Home Renovation firm When Endurance Group went public on the Australian Securities
Exchange in 2021, it divided its liquor and hotel operations. On December 5, 1924, Woolworths
Stupendous opened its doors. The first Woolworths store to open on Sydney's Pitt Street, which is
currently home to Westfield Sydney, was Bargain Basement. Preston Lanchester Gowing, the previous
head of Gowings, donated money to the organization Cecil Scott Waine's first booklet, F.W. Woolworth,
was indeed a play on his surname, which he used to acquire Woolworth's [CITATION Jan34 l 1033].

Woolworths was available in New South Wales, thus Percy Christmas urged Ernest Robert Williams to
trademark it instead, which he accomplished, according to Williams. They have no link to Woolworths Ltd
in Australia since the death of the F.W. Woolworth Company in the United States and the Woolworths
Group in the United Kingdom. It's also unconnected to South Africa's Woolworths Group.

Other Comprehensive Income and Classification

Aside from payouts from share capital, each input, asset upgrade, or net loss on the income statement
raises profit. These charges comprise all costs that result in a loss in equity that are not specifically linked
to equity participant distributions. At the moment of first measurement, the Group may make an
irrevocable decision to designate the asset as allocated at fair-value income. Each component is
responsible for establishing a powerful presence. When these goods are revalued, their gains and losses
are not translated into profits and losses. Gains and losses is not recorded until the corporation gets
returns in the form of a repayment of the cost of the economic asset. Liabilities, like released notes, are
component of the Firm's business strategy for gathering money that is owed and trading funds in order to
meet the Firm's strategic goals for these assets.

Profits and losses on the instrument are reflected in the other income statement, apart from depreciable
or losses and foreign cash gains and losses. The fact that the item earns interest is taken to calculate
profit and loss. Loans that have been amortized are a good indicator. The marketing strategy of the firm is
to collect cash flows from capital instruments, primarily concept and interests, In order to rate them at
amortized. The amortization cost of loan instruments such as trade receivables, bank balances, and cash
can be calculated using the interest paid method. The amortization takes into account the real interest,
the purchase discount or premium, and any taxes or fines. Accumulated depreciation is reported as
investment income on the income statement. The expenses of credit and receivables impairments losses
are included in the statement of income.

Reporting & Disclosure practices of Woolworth Australia

Woolworths Group honors Australia's Indigenous Guardians of Nation and their ongoing
relationship to soil, rivers, and communities. We show more respect to them and their traditions,
as well as ancient and modern seniors.
We wholeheartedly support the Uluru Statement and the Australian Constitution's recognition of
Aboriginal and Torres Strait Islander people. We commit to continue to listen to First Nations voices and
learn from them, and to also work together just to affect change. We acknowledge that we all have a
responsibility to do more to appropriately exemplify our purpose of working together to create wonderful
feelings for a better future.

Woolworths Group is a broad collection of enterprises with a mission to become a purpose-

driven company. The foundation for how we aim to function, to be greater; both our consumers,
our staff, the areas we service, and our stockholders, is created by our Programs conducted,
We build good moments together for a better future.
Financial Achievements

F21 was a critical year for the Woolworths Firm's history, with the full separation of Endurance Group as a
result of June. We also achieved considerable progress in laying the foundation for the Woolworths
Group's future, a more concentrated foodstuff and daily needs ecology powered by technology
and data, with a customer-first, team-first culture at its core. Despite H2 EBIT growth in several
companies being hampered by cycling COVID from late February the previous year, the
Group's F21 trade performance was outstanding, with sales growth of 5.7 percent and EBIT
growth of 13.7 percent
 Sales
$67,278M in sales
 Sales from continuing operations increased by 4.9 percent, owing to strong growth in Australian
Food and BIG W, particularly in H1, which was somewhat offset by lower sales in New Zealand
Food. The Endeavour Group's 9.3 percent increase boosted total group revenues by 5.7 percent.

 Gross profit
29.3%
Inventory losses reductions, favorable product mix adjustments, less markdowns, and
reduced clearance activity all contributed to increased gross profit across the Group.

 Finance expenses
$613M
As a result of the low non-lease operating expenditures and cheap borrowing rates, finance
expenses dropped over the past year.

 Online sales
$5,602M
Corporate e-commerce sales increased by 58.1 percent. E-commerce sales increased 63.3
percent as a result of the campaign, with concentration rising 3 percentage points to 9.4 percent
of sales on the same basis. During F21, average weekly traffic to ongoing operations' digital
assets increased dramatically, reaching 18.2 million hits per week.

Disclosure policy of Woolworths company

1. The goal
This Policy outlines the processes utilized by Woolworths Group Limited (Woolworths) to satisfy
its continuing disclosure commitments.

2. Purpose
This Rule applies to all Woolworths Group directors, employees, consultants, and
contractors (Team Members) who come into contact with data while doing their tasks.
The Corporations Act and the ASX Listing Rules impose ongoing disclosure duties on
Woolworths, which have legal force. Team Members who are found to be in violation of
these commitments may face serious criminal and civil consequences.

3. Market sensitive Information

Information that a sensible person would expect to have a meaningful impact on the
price or value of Woolworths shares is known as trade sensitive information.
 4. The Board of Directors role
Any major announcements or requests for trading halts must be communicated to the Council
(via the chairman or, if he or she is unavailable, the Chair of the ARMCC). Half-year and
comprehensive annual reports, monthly income updated releases, periodic disclosure documents
such as proposals, and any other releases required by the ARMCC President or Chair shall be
examined and, if relevant, authorized by the Committee.

CONCLUSION
When determining to choose whether or not purchase Woolworths, consider the impact of investor
opinion on the stock's price growth or drop. Over a one-year trading horizon, investor sentiment often
depends on the direction of a stock's movements. As a result, these expenses are typically viewed as
liabilities rather than assets. The existence and worth of brands (which are the result of years of
marketing and promotional investment) are commonly overlooked since copyrights are "off balance sheet"
in many firms. demarks may only be listed on a firm's balance sheet if they are bought from
another company as part of an M&A transaction Major analysts and market researchers, on the
other hand, do not believe that investor sentiment has an impact on the entire stock market .
Differences in market sentiment are used by some investors to determine whether the stock is
bearish or not. Investor sentiment, as opposed to the old methodologies like technical research,
refers to the overall investing community's perception of Woolworths. Traders, from the other hand,
may be able to forecast market mood precisely. If this is the case, they may be able to take advantage of
it. Examine at Woolworths' open interest history or fluctuation defined by Woolworths options activity to
get a sense of the market sentiment.