jb hifi accounting policy essay

JB Hi Fi Ltd Company Analysis Report Executive Summary 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. JB Hi-Fi Limited (JBH) is a specialty discount retailer of branded home entertainment products. The group's

Property Plant and Equipment Carrying amount of the Property, Plant and Equipment at reporting date of JB-HiFi According to AASB 116 Property, plant and equipment held beyond the normal operating cycle of entity are deemed to be non-current assets. Here’s the extract from the report. [pic] Descriptions: Carrying Amount of PPE is $163,982, 000, which is made up of the figure of plant &equipment which is $106,560,000 add to the Leasehold improvements which is $57,422,000 come out as the total

Key Reasons why Dick Smith failed when others survived? Role of Anchorage on Inventory and CashFlows: Anchorage bought DSH for $115million from Woolworths but according to an analysis by Matt Ryan from Forager Funds Management, they only forked out $7.4million from their pockets and settled the rest of the payments manoeuvring DSH’s balance sheet. Anchorage wrote down $121million worth inventory and plant & machinery using fair-value adjustments. These write down’s allowed them to reduce the COGS

performance 5 Highlight of operational performance 5 Change in accounting policies 6 Assets – PPE and Intangibles 6 leased assets and liabilities 9 Auditor and auditor report 11 Reference 13

Financial Analysis 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. 1. Liquidity ratios are a class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations

Contents Executive Summary 3 Introduction 4 Current Strategic Position 4 Figure One: Financial Analysis for Harvey Norman 5 External Factors 6 PESTLE Analysis 6 Economic Forces 6 Technological Forces 6 Political-Legal Forces 6 Ecological/Environmental forces 7 Socio-cultural forces 7 Porters Five Forces 7 Figure Two: Porters Five Forces 7 Figure Three: External Factor Analysis Summary 8 Internal Analysis 8 Figure Four: Internal Factor Analysis Summary 9 Recommendations 10