Individual Assignment – David Jones Limited

1. (a) DJS is a public company that issues shares to the general public and is a separate legal entity. (b) The income statement shows tax being deducted directly from company profit. The equity section show contributed equity instead of owners or partners’ equity. Also retained earnings after dividends or allocation to another equity account.

2. (a) Net assets and total equity have the same dollar value of $775,704,000. (b) Equity is the residual interest in the assets of the entity after deducting all its liabilities.

3. The finanical statements include the assets, liabilites and results of its subsidiaries incorporated in Australia.

4. The interest bearing liabilities comprises bank overdraft and unsecured bank loans. Overdraft and bank loan expiring in 15 December are reported as current liabilitis and bank loans expiring in 15 December of 2014 and 2016 respectively are reported as non-current liabilities.

5. (a)Contributed equity, reserves and retained earnings are reported under Company’s equity’s section. Contributed equity is the amount of total purchased ordinary shares. Retained earnings are the sum of profit retained in the entity after dividends payout. The share-based payment arises on the grant of share optons to employees and executives under share option plan and the cash flow hedge reserves. (b) Total equity of 775 millions in 2012 and 785 millions in 2011 are reported. (c) The opening contributed capital was $ 525,105,000 at 31st July 2011 and $547,028,000 at the end of the reporting period. The change in contributed capital is due to issue of ordinary share through dividend reinvestment. Some of the items resulting a change in reserves are net of tax and share-based payments. The retained earnings balanced $ 185,728,000 at 31st July 2011 and had profit of