Financial Accounting for Woolworths

Question: Discuss about the Financial Accounting for Woolworths. Answer: The consolidated and distinct annual financial statement for Woolworths is prepared because of the historical cost unless otherwise indicated. The accounting policies set out by the company is constantly applied to all the years in the consolidated and separate annual financial statement. The consolidated financial statements of the group include the assets, liabilities and outcomes of all companies over which it has control (Deegan 2013). It is noteworthy to denote that group has controls over the unit when they are exposed to the rights of inconstant revenues from its engagement with the unit and having the capability to create an impact those revenues with the help of its influence to direct the functions of the organisation. The property plant and equipment are measured based on the cost after deducting the amount of accumulated depreciation and impairment losses. Property, plant and equipment are tested for purpose of impairment based on the policies of impairment of non-financi al assets. The company aligns its accounting strategy for impairment of property, plant and equipment from its continuing operations. The accounting approximations of valuable lives demands noteworthy judgement of the management and it is reviewed yearly. Wherever the useful life is identified, the net amount of written value of the assets is depreciated commencing from the day of alteration in agreement with the reviewed useful life (Nobes 2014). Upon assessing the freehold properties of Woolworths, it was based on the combination of external and internal market value. Woolworths reclassifies its comparative amount to be in conformity with the current period presentation so that it reflects a better financial position and performance. References Deegan, C., 2013.Financial accounting theory. McGraw-Hill Education Australia. Nobes, C., 2014.International Classification of Financial Reporting 3e. Routledge. References