Accounting Business Reporting for Decision Making

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CHAPTER 3 Business structures 107

Coconut Plantations Pty Ltd
Balance sheet as at 31 December 2016
Current assets
Cash on hand
Accounts receivable
Inventories (finished goods and raw material)

$ 1 600
3 110
80 000 $ 84 710
Non-current assets
Building
Less: Accumulated depreciation — building

Equipment
Less: Accumulated depreciation — office equipment

200 000
500

40 000
10 000

199 500

30 000
Total assets 314 210
Current liabilities
Accounts payable 4 000
Non-current liabilities
Bank loan — due 2022 20 000
Total liabilities 24 000
Net assets $ 290 210
Shareholders’ equity
Share capital
Retained earnings

200 000
90 210
Total equity $ 290 210

Company reports — public company


JB Hi-Fi Ltd is an example of a public company limited by shares. JB Hi-Fi Ltd has to prepare its finan-


cial statements in accordance with the Corporations Act and accounting standards and interpretations.


Accounting standards include Australian equivalents to International Financial Reporting Standards


(IFRS). The statement of profit or loss and balance sheet in figures 3.2 and 3.3 respectively have been


prepared for JB  Hi-Fi Ltd for the period ended 30 June 2015. There are many similarities between the


reports of JB Hi-Fi Ltd and Coconut Plantations Pty Ltd as both entities are companies, but JB Hi-Fi Ltd


has additional reporting requirements because it is a listed public company.


JB Hi-Fi Ltd
consolidated statement of profit or loss
for the financial year ended 30 June 2015
Consolidated

Notes

2015
$’000

2014
$’000
Revenue
Cost of sales

3 3 652 136
(2 853 883)

3 483 775
(2 727 794)
Gross profit
Other income
Sales and marketing expenses
Occupancy expenses
Administration expenses
Other expenses
Finance costs 4

798 253
631
(374 084
(160 216
(27 711
(35 414
(5 927

)
)
)
)
)

755 981
520
(355 694
(148 969
(27 600
(32 716
(8 845

)
)
)
)
)

FIGURE 3.2 JB Hi-Fi Ltd consolidated statement of profit or loss (continued)
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