Answer To: Microsoft Word - HA3032 Group Assignment T1 2018.doc 1|Page HA3032...
Pulkit answered on May 27 2020
HA3032 AuditingTRIMESTER 1 / 2018
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HA3032 AuditingTRIMESTER 1 / 2018 Name of Student: Student ID:
Billabong International
Introduction –
This report is prepared for the purpose of audit program of Billabong International Limited is a company which is engaged in the business of wholesaling and retailing of surf, skates, snow and sports apparel, accessories and hardware over three key reporting segments i.e. the Asia Pacific, Americas and Europe. This report highlights the areas which are material and required detailed analysis by auditor and procedure which should be followed for the collection of evidence
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Task -2
a) Business operations –
It is a surf company which is primarily a clothing retailer along with it is engaged in the business of wholesaling and retailing of skate, snow and sports apparel over three key areas The Asia Pacific, Americas and Europe. The Group brands of the company include Billabong, Element, RVCA, Kustom, Palmers Honolua, Xcel, Tigerly and Von Zipper. The group operates 407 Retail stores for the year ended 30 June, 2016 and it also operates online retail e-commerce for each of its key brands. It is incorporated in the year 1977 as Gordon & Rena Merchant Pvt, Ltd.
b) Investment and Investment activities –
The major investment that the company makes is the investment in consumer durables that includes provides clothing apparels of skates, snow and sports apparel. The company also earns income from third-party royalties in other than three key areas.
The company primarily makes an investment in acquiring the retail chains which are engaging himself in a similar line of business as that of Billabong limited. The company primary income includes income by sale of clothing apparels in relation to skates, snow. The companies investment include property, plant, and equipment which land and building, furniture and leased plant and equipment which are used primarily for the purpose of business.
c) Financing and Financing Activities –
The companies financing activities include borrowings for the purpose of the business which includes both short term and long term borrowing which also include lease liabilities i.e. taking property, plant, and equipment for the purpose of business which includes both financial and operating lease. The loan is taken for the operations of the business and to continue them in an effective way. This state the borrowings are raised and repaid and additional shares issued during the period are also reported here.
d) Financial reporting practices-
The financial statements of the company have been prepared on the basis of Australian accounting standards (AAS) and in compliance with corporation act, 2001. The financial statements have been prepared on the basis of historical cost convention, as modified by the revaluation of asset and liability which has been recorded at fair value through profit and loss. The management has also utilized critical accounting estimate in the preparation of financial statements. It has also into account International financial reporting practices (IFRS) for the preparation purpose. The presentation of items of financial statements should comply with the applicable standard and should be disclosed along with proper notes in relation to such items should be disclosed appropriately.
2) A Financial statement is prepared for the users of financial statement on the basis of which they are able to analyze the performance of the company. The analysis can be done on the basis of a various method which also includes ratio analysis and then the ratio is compared with the standard ratio in the industry which helps in comparison.
Sr. No.
Particular
Explanation
1.
This ratio...