Accounting for MANAGERS Accounting for Managers Author's Note

Running head: ACCOUNTING FOR MANAGERS
Accounting for Managers
Name of the Student:
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Author’s Note

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ACCOUNTING FOR MANAGERS
Table of Contents
Part A...............................................................................................................................................2
Principle Activities of the Business.............................................................................................2
Revenue Recognition Criteria......................................................................................................3
Classification of Properties..........................................................................................................3
Audit Requirements.....................................................................................................................4
Sustainability Practices in the Business.......................................................................................5
Part B...............................................................................................................................................6
Efficiency Ratios.........................................................................................................................6
Analysis of Efficiency Ratios......................................................................................................6
Profitability Ratios.......................................................................................................................7
Analysis of Profitability Ratios of the Business..........................................................................7
Financial Leverage Ratios...........................................................................................................8
Analysis of Debt Position of the Business...................................................................................8
Reference.........................................................................................................................................9

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ACCOUNTING FOR MANAGERS
Part A
Principle Activities of the Business
The main purpose of this assessment is to analyze the financial reports of Woolworths
Ltd which is engaged in the business of retail and its operations mainly in Australia and New
Zealand. The company is regarded to be the second largest company by revenue which is
operating in Australia. The company is also known to be the largest takeover liquor retailer in the
country.
Revenue Recognition Criteria
As per the annual report of the company, the revenue recognition is shown in page 67 of
the annual report of the company for the year 2018. The revenue of the business is recognized
when the significant risks and rewards of ownership have been transferred to the customer, when
it is probable the revenue will be received and the amount of revenue can be reliably measured
(Weygandt, Kimmel and Kieso 2015). The revenue recognition criteria are covered under notes
to accounts section and the relevant note under which the same is covered under the note 1.2.2.
Classification of Properties
The notes to account section of the annual reports of the business shows that the
properties of the business are measured at cost less accumulated depreciation/amortization and
accumulated impairment losses (Woolworthsgroup.com.au. 2019). The borrowings, costs which
are included in the asset are considered to be a part of the asset until the asset is complete. Note