Individual Project Part B

a) Answer the follow questions using the financial statement of JB Hi FI:

(i) What items were included as “other current assets” and in which statement are they reported?

The “other current assets” included Prepayments ($4,191,000) and Deposits ($4,443,000), total of the other current assets is $8,634,000. And they are reported in the statement of financial position (firm balance sheet).

(ii) How much plant and equipment did the company dispose of during the most recent reporting year?

Disposal of the company at the year ended 30 June 2010: Plant and equipment ($2,085,000) and Leasehold improvement ($1,291,000). Total disposal $3,376,000.

Disposal of the company at the year ended 30 June 2011: Plant and equipment ($1,608,000) and Leasehold improvement ($261,000). Total disposals $1,869,000.

(iii) What portion of trade and other payable were “other creditors and accruals” during the current year?

The “trade and other payables” in 2011 was $301,602,000 and “the other creditors and accruals” was $8,284,000.

Portion=(other creditors and accruals / the trade and other payables)x 100

=(8,284,000 / 301,602,000)x 100

=2.75%

Therefore, the portion was 2.75%

(iv) At what point were sales of goods recognized as revenue?

Revenue from sale of goods is recognized when the Group has transferred to the buyer the significant risks and rewards of ownership of the goods. Risks and rewards are considered passed to the buyer at the point of sale if the goods are taken by the customer at that time, or on delivery of the goods to the customer.