...summary: This report is aiming to disclose how the Annual report of Woolworths for 2012 apply the accounting standard related to estimation uncertainty and accounting policy judgments. Furthermore, the potential gap between Woolworths’ current practice and the accounting standard requirements will also be discussed. Paragraphs 122- 124 of AASB101 has explained the requirements of significant accounting policy judgments and paragraphs 125-133 has detailed what need to be done for estimation uncertainty. According to these standards, Woolworths disclosed how the company determined the carrying amounts of assets and liabilities and explained the company’s policies to response the uncertainty due to foreign currency in their notes to the consolidated financial statement. Judgments about leases assets and liabilities and judgments about subsidiaries were also can be found in the notes. However, it can be indicated that some potential gaps still exist between Woolworth’s report and the accounting standard. For example, there is no assumption for how to revalue the fair value of some tangible assets in specified circumstance. What’s more, the company did not mention the sensitivities of carrying amounts of inventories and how to face these sensitivities. Therefore, further improvements need to be done in the next year’s annual report of Woolworths. Introduction: This report is an evaluation of Woolworths’ Annual Report in 2012, it will judge whether notes to Woolworth’s...
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...This report is aiming to disclose how the Annual report of Woolworths for 2012 apply the accounting standard related to estimation uncertainty and accounting policy judgments. Furthermore, the potential gap between Woolworths’ current practice and the accounting standard requirements will also be discussed. Paragraphs 122- 124 of AASB101 has explained the requirements of significant accounting policy judgments and paragraphs 125-133 has detailed what need to be done for estimation uncertainty. According to these standards, Woolworths disclosed how the company determined the carrying amounts of assets and liabilities and explained the company’s policies to response the uncertainty due to foreign currency in their notes to the consolidated financial statement. Judgments about leases assets and liabilities and judgments about subsidiaries were also can be found in the notes. However, it can be indicated that some potential gaps still exist between Woolworth’s report and the accounting standard. For example, there is no assumption for how to revalue the fair value of some tangible assets in specified circumstance. What’s more, the company did not mention the sensitivities of carrying amounts of inventories and how to face these sensitivities. Therefore, further improvements need to be done in the next year’s annual report of Woolworths. Introduction: This report is an evaluation of Woolworths’ Annual Report in 2012, it will judge whether notes to Woolworth’s...
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...Strategic & Financial Analysis Student’s name Student’s affiliation Woolworths Business Analysis Woolworths Limited operates as a retail superstore giant within and outside Australia. Its current growth plans enlist extension of leadership in food and liquor, shareholder’s wealth maximization through improved portfolio management, building new growth businesses and responding to change in new era of growth. It envisions a dynamic business, flexible enough to respond to ever changing customer needs, which can introduce innovations in products and is backed by complete customer satisfaction(Woolworths Limited, 2013). Being in the retail industry,which is one of the largest employers in Australia, employing over 1.5 million people and an overall worth of AUD 329 billion, there is plenty of opportunity for growth, and due to increasing population, the demand is not expected to fall for the products Woolworth has to offer (About.com, 2013), especially when its corporate strategy is need-specific and revolves around satisfaction of the customer. For the purpose of economy-wide and industry-wide factors which may influence future performance of Woolworths, Porter’s five forces model has been utilized. It has been concluded as an appropriate model which can adequately analyze a firm’s internal and external forces which affect its current and future strategies(CIMA, 2007). The five forces are bargaining power of customers, bargaining power of suppliers, threat of new entrants...
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...Financial Accounting & Key Financial Statements Define Accounting Accounting is the process of identifying, measuring, recording and communicating economic information to assist users to make decisions. “Accounting is the language of business” – Warren Buffett Users are able to make better, well-informed decisions with the correct and sufficient information provided * The CEO salary is regarded as an expense on the financial statement as it is a deduction and it reduces the company’s overall profit. (Salary is >$5 million) To find information about a company, we rely on: 1. Information asymmetry, voluntary disclosures 2. Annual reports - contains information about company and general purpose financial statements *Information asymmetry: a situation in which one party in a transaction has more or superior information compared to another (such as the seller knowing more than buyer) Woolworths Example: To find the annual report of Woolworths: 1. Search for the company website 2. Find the category – ‘Woolworths Limited’ 3. Locate ‘Invest in us’ – find all the history of annual reports Most of this information in annual reports is based on accounting. Woolworths Example: To check/reference the validity of CEO’s salary, we view 1. Company’s overall performance 2. Company’s competitors, in this case, Wesfarmers (including Coles): Richard Goyder (CEO with salary of $8.6 million in 2013) 1|Page Financial Accounting System and Managerial Accounting System Woolworths Example: Woolworths...
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...the changing face of traditional retailing into online in the trend to globalize the retailing sector. B. Strengthening Core Business David Jones strive to strengthen its core business via investments into better customer services and engagement. This was noted by better inventory management and investment in technology through the roll out of new POS (point of sales) systems to its store network in April 2014. C. Growing the store network DAVID Jones is working into a prototype to introduce a ‘Next Generation Store’ that would enable the company to have better category mix with introduction of Wi-Fi and mobile device charging facilities in store enabling customers to photograph and share images socially. 3. Key accounting policies relevant to the company’s...
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...Executive summary This report presents a detailed financial performance analysis of Woolworths Limited for Financial Years (FY) 2013 and 2014. The report takes an approach that aims to highlight industry trends before commenting on the financial performance of the company. This critical analysis is carried out through the examination of important financial ratios to assess the short-term solvency (liquidity), long-term solvency, profitability, management’s efficiency, and market based ratios of Woolworths. Finally, the report ends with a concluding comment offering input on the managerial directions that are currently taken by Woolworths and how market value will continue to increase based on sound decisions and management. Table of contents 1. Introduction............................................................................................................... 7 2. Economic Outlooks…............................................................................................... 7 3. Industry Profile………………….............................................................................. 7 4. Ratio Analyses…………………………………………………….......................... 8 4.1 Liquidity Analysis................................................................................................... 8 4.2 Long-Term Solvency Analysis.................................................................................9 4.3 Profitability Analysis......................................
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...Assessment 2: Mini Case Analysis Introduction The Supermarkets and Grocery Stores industry in Australia is under fierce competition, and the industry revenue is expected to grow at an annualized 2.2% in the next few years, to reach $98.1 billion (IBIS 2016). A growing number of discounters have infiltrated the industry, such as ALDI, which has forced two dominated companies, Woolworths and Coles, to lower prices and increase the number of private-label products (IBIS 2016). Malaysia hypermarket retail chain Giant is also eyeing the Australian market. Given the business context in Australia, political, economic and technological are the most relevant macro environmental factors that Giant should consider. Political factor The export tariff is an important issue in trading as Australia was Malaysia’s 10th largest export destination, accounting for 3.6 percent of Malaysia’s exports (Department of the Prime Minister and Cabinet 2012). The Malaysia-Australia Free Trade Agreement (MAFTA), was signed in May 2012 and came into force on 1 January 2013, provided a high level of market access liberalization for goods into the Australian market (Department of the Prime Minister and Cabinet 2012). The implement of MAFTA is likely to lower the cost of Malaysian products, enhance the relationship between trading partners and create investment opportunities and jobs in Australia market. Furthermore, according to the report of the Economist Intelligence Unit, Australia achieved one of the...
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...Contents Executive Summary 1 Introduction 2 Defining Sustainability 2 What Sustainability means to Woolworths 3 Corporate Stakeholders of Woolworths 3 Woolworths Drive for Change 5 Integrated Reporting 6 Why Integrated Reporting? 6 Woolworths Integrated Reporting 7 The Future of Integrated Reporting 7 Conclusion 8 Word Count: 1995 Executive Summary This report examines the new world of sustainability reporting, and the complex web of stakeholders. It focuses particularly on the demands for new kinds of transparency which serve the interests of the environment and society. In this report, Woolworths, one of our major competitors has been analyzed in order to understand how they have evolved the concept of sustainability and how they have applied it to their organizational level. As a result, Woolworths has placed our organization at a competitive disadvantage. The report finds Woolworths future prospects as a positive template in managing our organization. Their engagement on sustainability issues with their stakeholders, customers, suppliers, investors and employees through their Sustainability Strategy have placed them in the lead. This report provides an opportunity on sustainability and integrated reporting for our organization. Introduction Over the years there has been an increase in pressure and concern over the impact that organizations have had on the environment and the society. As a result, organizations are being challenged...
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...ITALIAN RESTAURANT BUSINESS PLAN HISTORY The location is only 1/4 of a mile away from Gravois Bluff's, the largest land moving project to put in a major shopping complex in the state of Missouri. The rent is half the retail shops in Gravois Bluff's, yet the location offers the same opportunity for sales. The recently completed highway 141 offers hundreds of thousands of local residents, shoppers from outside the area, and travelers that use this new highway. With this high concentration of customers there are no Italian restaurants in Fenton and a tremendous need for an upscale family restaurant that offers items for both the children and adults. This turnkey operation seats 170 customers and is the perfect size for a PHC family operation. With the current leasehold improvements and quality kitchen equipment it would take very little to upgrade this operation to the legendary PHC winning formula. The growth in numbers of high income families in the Fenton area is projected at over 30%. There is a need for a family fine dining restaurant in the Fenton area. PHC would be the perfect neighborhood restaurant in the perfect neighbourhood. The Pasta House Co. in Fenton will be the second location for Dennis Boldt, who has operated a successful franchise unit in High Ridge, Missouri for 20 years. The Pasta House Co. based out of St. Louis, and now has over 34 successful company and franchise locations in the United States and Mexico. PHC Fenton will have a prime location, great...
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...growww.businessmonitor.com Q4 2010 AUStrALiA food & drink report INCLUDES 5-YEAR FORECASTS TO 2014 iSSn 1749-2580 published by Business Monitor international Ltd. AUSTRALIA FOOD & DRINK REPORT Q4 2010 INCLUDING 5-YEAR INDUSTRY FORECASTS BY BMI Part of BMI’s Industry Report & Forecasts Series Published by: Business Monitor International Copy deadline: July 2010 Business Monitor International Mermaid House, 2 Puddle Dock, London, EC4V 3DS, UK Tel: +44 (0) 20 7248 0468 Fax: +44 (0) 20 7248 0467 Email: subs@businessmonitor.com Web: http://www.businessmonitor.com © 2010 Business Monitor International. All rights reserved. All information contained in this publication is copyrighted in the name of Business Monitor International, and as such no part of this publication may be reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means graphic, electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other means, without the express written consent of the publisher. DISCLAIMER All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Business Monitor International accepts no liability whatsoever for any loss or damage resulting from errors...
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...Executive Summary 7-Eleven is a famous brand and provide more than 40 thousands convenience stores for the customers in the worldwide and the most important factor is successful performance in Supply Chain Management (SCM). However, 7-Eleven still has been facing a lot of problems which should be sorting them out in order to get more business opportunities. This report focuses on the supply chain management of 7-Eleven and suggests the improvement for potential problem of its whole supply chain system. At first, will introduce the company’s background by collecting data about its current situation and identifies the issues which are supported by SWOT analysis. And through the GAP analyses of the business the key existent issues faced by 7-Eleven. According to those above, the report will finalize the recommendations and implementation methods in order to improve the business and set a benchmark for future development. In the end, although 7-Eleven’s trend is led more convenience stores to satisfy the need of customers, but it still needs to improve its supply chain and operation mode to Commercial global optimization to continue keeping its leading position in the retail market. 7-Eleven Background 7-Eleven is the largest convenience store chain in the world, which has approximately 47,500 stores in 16 countries. The first Australian store was opened in 1977 owned by the Withers/Barlow family which has the license to operate and franchise 7-Eleven stores in Australia from...
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...Direct Investment (FDI) is the flow of funds between countries wherein one country reaps benefits from the investments and the other can make the most of the opportunity to improve the productivity and stabilize their position through performance. The Dictionary of Economics has defined FDI as investment in an overseas country through the acquisition of a company there of an operation on a new site. In other words, the capital inflows from abroad that is invested in to improve the production capability of the economy. Two forms of FDI: * Inward FDI * Outward FDI FDI is an important factor for growth and development in both developed and developing countries. FDI has seen a spectacular growth in the last two decades globally. Policies are formulated in order to accelerate inward flows. FDI provides good opportunities and benefits for both the host and home countries in terms of investments. The “home” countries benefit from the markets opened by industrial growth and the “host” countries obtain managerial and technological skills along with domestic savings and foreign exchange. Moreover, the lack of capital, financial, technology, entrepreneurship, access to markets skills and practices have prompted developing nations to accept FDI as a viable option. The Government of India (GOI) with...
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...Strategic Risk Analysis The current strategic objective of FreshMade Cheese Farms is to further new market opportunities by including international subsidiaries as part of the business strategic plans. The mission of FreshMade Cheese is to be a global leader in the cheese industry. The first step in realizing that mission is to capture 75% market share of the cheese industry in New Zealand. The subject of this analysis examines the New Zealand market expansion risks and opportunities supporting the business mission and objectives. External Influences and Risks External influences beyond the control of the business add risk but are a part of the competitive environment and risk analysis (Pearce & Robinson Jr., 2009). This section presents the significant external forces and risks in the New Zealand subsidiary expansion. Legal and Regulatory Legal and regulatory environments influence businesses and FreshMade Cheese Farms is no different. The Foreign Corrupt Practices Act (FCPA) enacted in 1977 makes bribes of foreign officials, agents, employees, or other similar foreign representatives illegal (Cheeseman, 2010). Many foreign countries have standard practices of accepting bribes or using similar influences to do business in the country. U.S. businesses are not allowed to operate in this fashion under the FCPA (Cheeseman, 2010). One of the main New Zealand laws that FreshMade Cheese must consider is the Overseas Investment Act of 2005. This legislation outlines...
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...CHAPTER 8 Accounting for Receivables ASSIGNMENT CLASSIFICATION TABLE | | | | |Brief | | | |Learning | |Questions | |Exercises | |Do It! | |Objectives | | | | | | | | | | | | | | | |1A | |Prepare journal entries related to bad debt expense. | |Simple | |15–20 | | | | | | | | | |2A | |Compute bad debt amounts. | |Moderate | |20–25 | | | | | | | | | |3A | |Journalize entries to record transactions related to bad debts. | |Moderate | |20–30 | | | | ...
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...Trading and Liquidity 9 4.2.1 Stock Liquidity 9 4.2.2 Bid-Ask Spread 10 4.3 52 Weeks High and Low 12 4.4 News and Disclosure Analysis 14 4.5 Analyst Coverage 17 5. Business Analysis 26 5.1 Macroeconomic Analysis 26 5.1.1 Economic Factors 26 5.1.1.1 GDP Growth 26 5.1.1.2 Exchange Rate 27 5.1.1.3 Interest Rate 28 5.1.2 Legal Factors 28 5.1.2 Market Factors 29 5.2 Industry Analysis 29 5.2.1 Rivalry Among Existing Companies 29 5.2.2 Threat of Substitutes or Services 30 5.2.2.1 Shale Gas 31 5.2.2.2 Biofuels and Renewable Resource 31 5.2.3 Threat of New Entrants 31 5.2.4 Bargaining Power of Buyers 32 5.2.5 Bargaining Power of Suppliers 33 5.3 Business Strategy Analysis 33 5.3.1 Cooperating With Woolworth 33 5.3.2 Domestic Market 34 5.3.3 Packaging Changing Plan 34 6. Management Quality and Corporate Governance Analysis 35 6.1 Management Quality 35 6.2 Internal Corporate Governance 37 6.3 External Governance 40...
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