1. Over the year current liability of JB Hi Fi limited has increased or decreased by how much? Under the current liability, classification the class that are recorded
The financial statement of the organisation displays the transaction and other expenses that utilized for the year. This types of information helps to identify and analysis the position of the organisation international market. In order to this, financial report of the concern organisation shows that current liability increased for the year 2013 as compare to 2012.
The total amount has been increased about $2.9 M as per the financial report of the JB Hi-Fi Ltd (jbhifi.com.au, 2013). In 2012, the amount of current asset is $439.38, whereas the liability amount to $442.38 in 2013. The financial report of the organisation stated that the Current Liability increased at high rate as compared to other organisation. As stated by Brouwer & Hoogendoorn (2017), current liability specify the amount that required to be payable to the creditors in a stipulated time period. The class of current liability of JB Hi-Fi Ltd in the financial report are accrued payroll, accounting payable, payable of income tax and other liabilities. Therefore, the financial report the firm help to analyze the data to represent the conditions to identify the current liabilities.
2. At the end of financial year, what are the major liabilities of JB Hi Fi limited?
For every organisation the major liability includes long term and short liability of the firm. This makes a large impact for the organisation on their financial statement. In this case, the concern organisation that is JB Hi-Fi Ltd shows the major liability is debit of deferred taxes, non convertible debts, accounting payable. Therefore, these are some of the major liabilities of the organisation that has been identified from the annual report of the concern organisation.
3. In balance sheet, what are the items are included in the head of Provisions of current liability? Evaluate the nature of the items and would they satisfy the definition of provision that are containing in IAS37 /AASB137?
As mentioned by Morse (2017), the “provision” refers to the expected profit of the firm that may get liable or the values may get decreased from the amount of asset. The mainly purpose of provisions liability for adjust present year accurately to provide cost records properly. The items that are included under the head of provision of current liability are Depreciation, Pension, provision for bad debt or some other Accruals and other employee benefits. The nature of provision for bad debt helps to calculate encountered parts of the accounting periods that are unexpected to pay in future. Under the law of IAS37 /AASB137, Provisions is the uncertain liability that can be differentiated from other required liability of the organisation. As per law, accrual is the part that generates accurate timing and estimates the provisions. The liabilities of the employee benefits increased for about $7309. In 2013, employees benefits is $35,111, whereas in 2012 about $27,802.
4. At what amount has been raised by the interest bearing loan in most of the financial year?
As per annual report, the cash flow statement of the organisation net inflow is $156410 from borrowings. On the other hand, cash inflow for previous year that is 2012 was $215007 as per the financial statement (jbhifi.com.au, 2013). Therefore this report state that from the past report the financial year of the organisation been substantial expensed to a large extent. Interest bearing loan provide an insight for future activities that would access the market plan and provide a rate of interest in proper way. Therefore, the concern organisation cash inflow from the balances sheet stated that amount of borrowing maintained in proper way.
5. Identify whether any non-current liabilities that are secured?
In liability all are not subjected as risk factors for every smooth and leading position firms. There are some of secured non -current liabilities like secured loans, floating securities and so on. In JB Hi Fi Ltd, all the borrowing for the firm that are show on the balance sheet is secured by floating or fixed securities. It helps to reduce risk factors and get a better financial position in the financial year. Therefore, it reduces the risk factors and makes the firm save from uncertain risk or obstacle for the upcoming years. Hence, all the borrowing is accessed are quite relevant and make available to the sources in the financial statement.
6. With 2 year, how much non-borrowing liabilities need to repaired?
Within the last two year, non -current borrowing indicators for about $149,775, need to repayable and approximately $124331due for last 2 years. Therefore, form the above study these stated that compliance provision required to be calculated along with gearing ratio of the accounting standards. The board of member reviews that capital structure required to adjusted along with the shareholders funds and develop debts that are included in the capital management funds. Therefore, it would help to borrowing funds to operate the shareholders funds.
7. Is there any Non current provisions? If so, what are terms required for representing?
Yes, in the annual report of JB Hi-Fi Ltd, non -current provision is show that states the details along with the employee benefits for amount of $ 3747 for 2013. There are two types of noncurrent provisions in the report that is lease provision and another one is employee benefits. It helps to determine the calculation that helps to generate the provisions that required fulfilling the organisational goal. Therefore, the concern organisation has been expanding to represent the benefits to the employee of the firm.
1. In the Country Road Limited, income statement shows negative income expense. Will this expense item seem in the income statement of partnership? Explain
As stated by Harris (2016), income statement showing negative income of the organisation means loss incurred when firm fixed cost or cost of goods sold are increasing for the time periods. In this regards, the statement of partnership accounts of the organisation effect to large extent. Therefore, most of firms deal with different type of agreements related to expense beard by them according to capital sharing profit sharing ratio or mutual decision within them. Therefore, agreement must be before consulting other partner, which would reduce conflicts with the partners of firm. In concern organisation, there is no such type of income expense will not be included on the partnership account.
Hence, income tax expense are stated and included in sole proprietorship. Since, tax expenses are not included in the income statements; it would be liability for individual tax payment for the organisation. If these type of expenses are related to the some other factor for generating the management plan for maintaining income statement of partnership firm. Therefore, income statement of partnership would provide the incurred plan that would agreed according to mutual understanding of the partnership firm. County Road Limited financial report helps to provide detail information for maintaining the expenses to calculate the cash inflow and outflow for the getting details information (countryroad.com.au, 2013). Therefore, the concern organisation will not include any income tax expense for partnership firm accordingly.
2. In the give statement, changes in equity related to retained earnings, what are the total profit that are available for partners in the concern organisation?
Accumulated earnings mainly generate profit that is available by deducting divided and net loss for the year. In this regards, it is the responsibility of the partners in partnership firm to invest capital for business or trade. This contribution of capital would be secured still the business get wind up or as per mutual agreement between the partners. These type of transaction would be report in the both the account of profit and loss account as well as appropriation account. The main differences between two accounts is profit and loss shows quantum of surplus at end of the financial year, whereas profit and loss appropriation account is prepared for only partnership firm for generating the proper transactions. Profit and loss account is compulsory at end of financial year. Therefore, for generating the partnership firm, profit and loss appropriation account will help to provide relevant records for the year ended.
As per income statement of the Country Road Limited allocation of profit is done on the profit and loss appropriation account instead of profit and loss account (countryroad.com.au, 2013). The use of profit and loss appropriation account is been done according mutual agreement within the partners while doing the partnership agreement. Therefore, this required to done before starting the partnership to avoid conflicts with other partners during accounting process. Hence, profit and loss appropriation account will help to develop and utilize the concern organisation to deliver the plan accordingly.
3. Refer to financial statement of the Country Road Limited and note the issued capital? Identify the differences and explain it properly?
As per the financial statement, the concern organisation required to management the capital management for providing the accounting process for the concern organisation. Issue capital is mainly the amount that represent in the form of selling stock for public investment funds. The organisation realise the amount to invest the amount in share capital ratio. In this regards, it is the part of the firm as authorised capital in the financial statement. These types of funds rise of the funds mainly done by the partner in partners firm. Therefore, the issue capital required to generate the funds to invest in the capital funds that required developing the financial statement of the organisation. The issued capital would stated or replaced by the name of existing partners of the firm and along the funds raised for generating the accounting process for the firm.
As mentioned by Christoffersen, Evans & Musto (2013), issued capital raised by the partner of the firm to sell for public interest and operate the plan in different way. This required generating the accounting pattern to operate the partnership system in different way. Hence, the provide funds help the organisation to operate the required to be fulfilled to operate the management for raising the fund for selling the stocks. As a result, the concern organisation maintaining the funds that are required for raising the amount to operated the funds in proper way. This stated that capital of the partners required for developing the financial statement in the financial year.
4. The concern organisation required to produce a statement of cash flow and would help to produce the financial statement. Why or why not? Other hand would partnership would typical statement for firm? Explain.
As mentioned by Florysiak & Goyal (2016), preparing of cash flow statements is an essential as present the indicators for operating the cash outflow and inflow for business transactions. Operating activities, financing activities and investing activities are some of the parts important parts of the cash flow statement. It helps to identify and analysis the fund that spend for transaction purpose. In this regards, if the inventory amount is increasing then it indicates the amount of cash that have been used. This help to expand the business that results to more cash used. Hence, these are some of the factors that are not income statement of the firm. Cash flow statements to identify and focus to cash that have been used and spend for the firm. This statement required to dome accurately and wisely to make the partner to take appropriate decisions for investing and taking loan from different sources. However, this cash flow statement would help to operate different transactions and the amount of current assets and liabilities that are deceasing to large extent.
As mentioned by Carslaw & Mills (2014), operating activities, financing activities and investing activities required to maintain properly to get actuates result for the financial year. It required providing the details information for the financial year as per the required process to generating the detailed information. Therefore, income statement does not provide the accurate or wise details related to records for investing activities of the firm. Hence, the importance for making the transaction details related to funds transaction would generate accurately by preparing cash flow statement for the firm.
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