Jb Hifi Accounting Analysis

Topics: Depreciation, Generally Accepted Accounting Principles, Asset Pages: 4 (1291 words) Published: August 28, 2011
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 Plant & Equipment Figure. To be expected that the plant and equipment accounts for more than 50% of total PPE ($106,560,000) for their main operating activity — retailing of home consumer products from stand alone destination sites and shopping centre locations, offering a wide range of leading brands with particular focus on consumer electronics, electrical goods and software including music, games and movies. In this case study there are no properties activities mentioned in the Report.

With the accounting policies relating to Property, Plant, and Equipment adopted by the company is mentioned as Plant and equipment, leasehold improvements and equipment under finance leases are stated at cost less accumulated depreciation and impairment (if any). But, In this report there are not any impairments.Cost includes expenditure that is directly attributable to the acquisition of the item. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition.Depreciation is provided on plant and equipment. Depreciation is calculated on a straight-line basis so as to write off the net cost of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method. The estimated useful lives,...
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