Address: Board Of Directors Of Super Retail Group Ltd

As discussed above, if indicators of impairment exist for an asset (group) to be held and used, an entity determines whether the sum of the estimated undiscounted future cash flows attributable to the asset (group) in question is less than its carrying amount. If those undiscounted cash flows are less than

According to the new standards, “Users of financial statements must be able to assess the amount, timing, and uncertainty of cash flows arising from

Gross profit margin - The gross profit margin measures the gross profit earned on sales. The gross profit margin considers the cost of goods sold, but does not include other costs.

IFRS requires that any assumptions and estimates made should be reasonable under the prevailing circumstances. The management is required to make substantial and reasonable estimates and assumptions of the amounts that should be disclosed in the financial statements. However, the extent of subjectivity is controlled by the requirements and guidelines outlined in IFRS 10. The management should ensure that the consolidated financial statements are in accordance with the IFRS 10 guidelines (Kirk, 2005).

While generally accepted accounting principles include wide guidelines of general application, the standards also include comprehensive practices and procedures that offer the standard for evaluating financial presentations. As a result, these principles in financial recording and reporting tend to imply a substantial and significant authoritative support. Notably, GAAP standards are not a series of specific tailor-made guidelines that can be easily accessible in a single convenient range of rules. This is primarily because they originate from several sources and within a developed hierarchy. Generally, the standards range from the guidelines established by the Financial Accounting Standards Board, financial reporting literature from the AIPCA, and some financial

Financial statements provide documentation of a company’s financial history for a set timeframe. One of the financial statement used by investors, creditors, and mangers is the balance sheet. The second statement used by accountant’s income statement, which is also important to shareholders. The third statement is the retained earnings statement, and the fourth financial statement is the statement of cash flows. Each financial statement has a different purpose and shows different aspects of the company’s finances. However, these financial statements are integrated and work together to

General Purpose Financial Reports can be defined as a financial report which is made with the intention to meet the need of information common to users who are unable to command the preparation of reports tailored so as to satisfy, specifically, all of their information needs (Statement of accounting concept – 2, Page – 5, paragraph – 4). In simple words, the users who do not have necessary power to demand financial statements from a company specifically depends on the information given in the general purpose financial reports. Under the Conceptual Framework released in 2010, the primary users of the financial reports are mentioned as

The first assumption need to be made when undertaking an impairment test is to make sure all assets that may be impaired are included in the test. IAS 36 has a list of external and internal indicators of impairment. If there is an indication that an asset should be impaired, the calculation of the asset's recoverable amount should be done. [IAS 36.9]

It is important to be aware that financial accounting is an area in accounting where all financial transactions of the corporation are recorded in. It is a process that through time has become the systematic way for record keeping of all off a corporation’s transactions in order to be able to report the data in an efficient manner. It is because of this that is so highly regulated by the reporting authorities. The framework laid out by the IASB. It is within these standards that all the rules and regulations relevant to all aspects of accounting are laid out. These standards are prepared and explained in a very simplified, yet comprehensive manner, in order to allow financial accountants to perform their day to day operations. Moreover, it is to ensure that there is conformity and uniformity in all aspects of

This increased disclosure is a result of the efforts of the SEC and the FASB. The pronouncements issued by these organizations include many disclosure requirements that are designed to improve the financial reporting process. Numerous reasons can be cited for this increased emphasis on disclosure requirements. Some of the more significant reasons include (a) the complexity of the business environment, (b) the necessity for timely financial information, and (c) the use of accounting as a control and monitoring device. Notes to Financial Statements 3. (S.O. 2) Notes are an integral part of the financial statements of a business enterprise. Although they are normally drafted in somewhat technical language, notes are the accountant 's means of amplifying or explaining the items presented in the main body of the statements. Many of the note disclosures which are common in financial accounting are discussed and presented throughout the text. The more common note disclosures are as follows: a. Significant Accounting Policies. This information is designed to inform the statement reader of the accounting methods used in preparing the information included in the financial statements. Accounting policies of a given entity are the specific accounting principles and methods currently employed and considered most appropriate in the circumstances to present fairly the financial statements of the

According to AASB 136 an entity should ensure that assets are carried at no more than their recoverable amount, therefore at the end of each reporting period, an entity is required to assess whether there is any indication that an asset may be impaired. An impairment loss is recognised whenever recoverable amount is below carrying amount. The recoverable amount is defined as the higher value of fair value less costs to sell and value in use. Further, paragraph 25 and 30 AASB 136 describes some elements should be considered in the calculation of fair value and value in use, including an estimate of the future cash flows.

From the Board side, new disclosure requirements were to be set and the existing requirements were to be evaluated to determine if any changes or updates are necessary. The focus of the project was to examine disclosures relating to four accounting topics: Fair Value Measurement, Defined Benefit Plans, Income Taxes, Inventory. Upon examination, it was to be determined if the disclosures as written were effective and adequate. If not, the FASB would determine necessary changes to make. The Entity side of the discussion was far simpler, being that the main objective of this side of the discussion was to promote discretion when evaluating Board requirements.

Accounting standard-setters have an expectation that the readers of general purpose financial reports have a ‘reasonable knowledge’ of accounting. Specifically, the IASB Framework states that ‘users are expected to have a reasonable knowledge of business and economic activities and accounting and a willingness to study the information with reasonable diligence’. Hence, there is an expectation that financial statements are not tailored to meet the needs of people

To discuss the accounting standards for intangible assets that are not dealt with in another IFRS.

1.1 An Analysis on the purposes of the main financial statements and discussion on the difference between them. (P4.1)