Accounting Analysis : Accounting And Accounting

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Accounting Analysis In the accounting analysis part, we will discuss and analyse SUL’s accounting policy by identifying its key accounting policies, assessing the accounting flexibility, evaluating the accounting strategy, evaluating the quality of disclosure, identifying red flags and undoing accounting distortions to evaluate that if SUL’s financial statement is transparent and not misleading. Also, we will compare these elements to its competitors in order to give investors a clearer vision of its accounting quality. Step 1: Identify Key Accounting Policies The company’s fiscal year is comprised 52 or 53 calendar weeks and financial year 2014 ends at the end of June. Following the regulation of Australian Accounting Standard Board (AASB) and International Financial Reporting Standards (IFRS), SUL prepare its financial statement which requires management to make assumptions and estimates and explains in the footnotes. SUL considers any original maturity is 3 months or less highly liquid investment as cash and cash equivalents. SUL is also a consolidated company who has subsidiaries so the financial report is a consolidated one. The key accounting policies in Super Retail Group are the policies that govern the inventory value, revenue/expense recognitions and depreciation. On the other hand, the policies that govern the inventory value are essential to all retail business. SUL recognizes retail and interest income as its revenue. Sale of goods is recognized when the time of

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