Answer To: ACCT20071 – Foundations in Accounting ASSIGNMENT 1- Term 1, 2019 PRACTICAL AND WRITTEN ASSIGNMENT:...
Sarabjeet answered on Apr 11 2021
IFRS
IFRS
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Contents
Introduction 3
The major issues with practical application of IFRS 3
Inventories 4
Depreciation and amortization 5
Depreciation/Amortization/Depreciation of Woolworth Group 9
Conclusion 11
References 12
Introduction
Accurate and timely provision of financial information and performance of a listed company is essential to the reliable fair price information required for the transaction. The need for and value of IFRS is growing rapidly as the economy continues to globalize and corporate activities increase across borders (Akenbor & Major, 2015). International financial reporting standards are strict standards in management; companies will have to earn profits based on capital that manages fair value. This report includes the application of the accounting standards/IFRS in reporting of non-current assets for example leased, tangible, intangibles, owned, as well as depreciation/amortisation/impairment for the Woolworth’s group, and trends in their values for the years 2014-2018 is also discussed in this report.
The major issues with practical application of IFRS
The biggest challenge is the resistance to change in the people's mindset. This resistance exists in companies, government agencies, and even stakeholders. In addition, there are various legal and reporting requirements in each country that must be addressed before these IFRSs are implemented. The adoption of IFRS will benefit on a large scale globally, and even the accounting profession will benefit from having the latest knowledge in the international accounting community. Another possible challenge that may be faced is the management of data based on old accounting standards and the management of new data prepared in accordance with the new accounting standards. The new accounting standards are only IFRS (FANG, 2017).
Woolworths' trading income does exclude the management of the concessionaire and is considered to be provided after work. The deals offered by Woolworths are considered a source of revenue for the company. Revenue from sales of goods is recognized when the customer delivers the product on the date of fulfillment of all installments and ownership of the shares, in accordance with AASB 118 - Revenue Recognition. Interest wages can be perceived using a powerful conspiracy system, as described in AASB 139. According to AASB 118, when the levy of instalment is granted, the profit is recognized as income. Woolworths provides the client with an unwavering plan for the customer to collect points for future transactions. You will see your points earned when you recycle your points.
Revenue recognition
Revenue recognition is the essential bookkeeping methods for retail organizations. Woolworths' trading income does exclude the management of the concessionaire and is considered to be provided after work. The deals offered by Woolworths are considered a source of revenue for the company. Revenue from sales of goods is recognized when the customer delivers the product on the date of fulfilment of all instalments and ownership of the shares, in accordance with AASB 118 - Revenue Recognition. Interest wages can be perceived using a powerful conspiracy system, as described in AASB 139. According to AASB 118, when the levy of instalment is granted, the profit is recognized as income. Woolworths provides the client with an unwavering plan for the customer to collect points for future transactions. You will see your points earned when you recycle your points.
Inventories
In the agreement with AASB 102, Woolworths' inventory is measured at a lower cost and achievable net worth. The weighted normal cost strategy is used to allocate expenses to personal inventory, which is selected by the organization and agrees to AASB 102. Retail inventory is essential because it determines the cost of organizing the sale of goods.
Depreciation and amortization
The organization's intangible resources include goodwill, brand and trademark, software and rental rights. Goodwill and brands with no predictable brand development dates are assessed as having an uncertain lifespan and are not amortized, and are judged annually for disability in certain years around 2015 and 2016. According to AASB 136, an entity is obliged to test intangible resources and determine their valuable lives by comparing the recoverable value and the value of the transfer each year and with evidence of weaknesses. The Group surveyed the impedance of funds related resources at the end of each reporting period. These estimates require the use of assumptions. Assessment and suspicion may have significant risks in communicating the substance to unreachable resources (Kuter, Gurskaya, Andreenkova & Bagdasaryan, 2018). The electronics area has been in excess of 5 to 12 years and the lease rights have been amortized over the past five currency years for more than 11-18 years. The clear and valuable existence of intangible resources is addressed according to AASB 138. Basic resources, the land has not deteriorated, so the land is not depreciated or amortized. The structure, equipment and accessories, and the depreciation of the plant and hardware use the straight-line method to calculate the residual value of the remaining useful life, which is consistent with paragraph 62 of AASB 116.
Woolworths clarified its current implementation in its Chairman and CEO report. Recently, Woolworths tends to be interested in resources that are not available. In other words, Woolworths is pushing the online phase to increase revenue and offers more than 45,000 items through its online store. From 2012 to...