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.
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, residual values and depreciation method are reviewed at the end of each annual reporting period, with the effect of any changes recognised on a prospective basis. The following estimated useful lives are used in the calculation of depreciation: – Leasehold improvements 1 to 15 years
The Essay on Plant Cells Cell Life Animal
Cells were discovered in 1665 by Robert Hooke when he took a piece of cork and looked at it under a microscope. Cork is made up of dead cells but you are still able to see the cells which proved to be interesting to him. He described it as being made up like bricks in a wall and these bricks he then called cells. Due to the size of cells it is nearly impossible to see them without the aid of a ...
– Plant and equipment 1.5 to 15 years
Intangible Assets
Composition and Relevance of the Intangible Assets
Below is an extract from the JB-HiFi 2010 Report
Discription: The Carrying value of the Intangible Assets: The carrying amount for goodwill is $34,837, 000(41.54%);Brand names are $43,094,000(51.39%);Location premiums are $2,388,000(2.8%);and the rights to profit share is $3,542,000(4.2%).Then, add these figures together which comes out with the total Intangible assets $83,861,000. As we know, JB HiFi is a retailing store 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. There is a lot of stores in Australia national wide. One of the roles of brand names is that it can contribute to stabilize product price, reduce price elasticity, enhance the adaptability of dynamic market, and reduce future business risk.
Brand names, location premiums and rights to profit share are assessed as having indefinite useful lives and relate to the Australian cash generating unit. This assessment reflects management’s intention to continue to utilise these intangible assets into the foreseeable future.The recoverable amount of other intangible assets has been determined based on value in use calculations using the same methodology .
The Term Paper on Group Decision Making
Abstract Group decision making is imperative for deciding what action a group should take. This paper aims to define the process of group decision making and examine the discipline, theory, paradigm, and methodology that dominate approaches to group decision-making research. Furthermore, it provides an outline of the research’s perceptual process and endeavors to address an appropriate alternative ...
The Accounting policies for the intangible assets are
(i) Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Company’s share of the net identifiable assets of the acquired business/associate at the date of acquisition. Goodwill on acquisitions of businesses is included in intangible assets. Goodwill on acquisitions of associates is included in investments in associates. Goodwill is not amortised. Instead, goodwill is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units (CGUs), or groups of CGUs, expected to benefit from the synergies of the business combination.
CGUs (or groups of CGUs) to which goodwill has been allocated are tested for impairment annually, or more frequently if events or changes in circumstances indicate that goodwill might be impaired.If the recoverable amount of the CGU (or groups of CGUs) is less than the carrying amount of the CGU (or groups of CGUs), the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the CGU (or groups of CGUs) and then to the other assets in the CGU (or groups of CGUs) pro-rata on the basis of the carrying amount of each asset in the CGU (or groups of CGUs).
An impairment loss recognised for goodwill is recognised immediately in profit or loss and is not reversed in a subsequent period.On disposal of an operation within a CGU, the attributable amount of goodwill is included in the determination of the profit or loss on disposal of the operation.
(ii) Brand names and trademarks
Brand names recognised by the Group have an indefinite life and are not amortised. Each period, the useful life of this asset is reviewed to determine whether events and circumstances continue to support an indefinite useful life assessment for the asset. Such assets are tested for impairment in accordance with the policy stated in note 1(n).
The Business plan on Tangible Assets Intangible Goodwill Aasb
The Australian Accounting Standards Board (AASB) is currently deliberating over the recent US accounting standards requiring that internally generated intangible assets and goodwill be valued and placed on the Balance Sheet. This will require the Valuation of Patents, Trademarks, Customer Lists, R&D (Commercialisation phase) and any other Intangible Asset deemed separable or legal / ...
(iii) Rights to profit share
Management rights in relation to the profit share agreement of the Highpoint store have been recorded at the cost of acquisition. The directors gave due consideration to the technical and commercial life of the rights to determine their useful life and have assessed them to have an indefinite life. The profit share is not amortised and the carrying value is tested for impairment as part of the annual testing of cash generating units.
(iv) Location premiums
Location premiums represent the amounts paid to secure the rights to prime retail lease space. The location premiums recognised have an indefinite life and are not amortised. Each period, the useful lives of the assets are reviewed to determine whether events and circumstances continue to support an indefinite useful life assessment for the assets. Such assets are tested for impairment in accordance with the policy stated in note 1(n).
Impairment of assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).
Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
