Jb Hi Fi Ltd Essay

An accounting entity is an organization for which financial data are to be collected (separate and distinct from its owners).

In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial

The impact of a company’s financial statement depends mainly on the company’s business strategy; both transactional and operational, its industry profile and the nature of its competitive environment. This report analyses 15 ratios of JB Hi-Fi’s financial performance and suggests a recommendation for investors.

The question asks us to compare and evaluate JB Hi-Fi’s calculated ratio report, with that of the retail industry ratio report (Potter, Libby, Libby, Short p. 1133). The retail ratio report is comprised of a basket of listed companies which operate under the retail banner, which makes it relevant to use as a comparison to JB Hi-Fi.

This report is looking into the organization JB Hi-Fi the vision, mission, values and challenges facing the organization, while identifying and analyzing the business. It will also feature a SWOT report followed by and over view of the organizations issues. Lastly the report will look into current and ongoing HR issues within the organization.

JB Hi-Fi limited is a company that is based in Australia. It usually engages in the selling of the home consumer electronic products which include the televisions, video cameras, mobile phones, home theatres, digital still and other electrical accessories like the kitchen equipment, computing equipment, the air conditioners, small electrical appliances like the car sound systems; both visual and audio and other things like the movies and games. It continues to stock exclusive specialist range of Hi-Fi products. JB Hi-Fi has its subsidiaries that include JB Hi-Fi (A) Pty Ltd, JB Hi-Fi Group Pty Ltd, Rocket Replacements Pty Ltd and JB Hi-Fi NZ Limited.

As the business environment grows and companies find new ways to expand into their respective - or even new – markets, it is important that reporting standards stay up to date with changes and continue to assist companies in providing their users with useful accounting information. Information is labelled as being useful when it meets the

JB Hi-fi was established by John Barbuto (JB) in 1974 and opened its first shop in Melbourne. In 1983, it was sold to Bouris and Rodd who expanded the company and, later on, sold the majority of their holding to a private equity, Next Capital Pty Limited. The company’s share was floated in Australian Stock Exchange in 2003 at IPO price of $1.55.

In this report, we are going to analyse the financial performance of JB Hi-Fi Limited (JBH), over the past three years (2012 to 2014), by calculating a series of ratios, using different historical data provided by audited financial reports. A period of three years has been selected for the financial analysis of the company as trend results generated over several periods are much more meaningful than that from a single year balance sheet and income statements. Moreover, after having calculated the ratios, we will then draw conclusions on the past performance of the company and finally benchmark with of one its main competitors, Harvey Norman.

IASB. 2010, "The Conceptual Framework for Financial Reporting" IFRS, pp. A21- A38, viewed 23 April 2014,

Financial statements of the company are significant for the investors who would like to venture into the business operation. It gives them the insight whether the business is making profits or it is doomed to fail;

Overall, SAC 1 adopts a concept of reporting entity which is tied to the information needs of the users and the nature of general purpose financial reports. In other words, the class of entity defined under these concepts may include some entities by virtue of the existence of users dependent on general purpose financial reports, whether they are identified as reporting or non-reporting.

General purpose financial statements provides information on the financial position of an entity. Thus it includes information on economic resources and claims against them.

That engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity);

“EXECUTIVE” MEANS THE BODY, BY WHATEVER NAME CALLED, TO WHICH THE MANAGEMENT OF THE AFFAIRS OF A TRADE UNION IS ENTRUSTED.