Accounting for Managers: Insights into Company Operations, Revenue Recognition, and Asset Valuation

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

1ACCOUNTING FOR MANAGERS
Table of Contents
PART A – THE COMPANY..........................................................................................................2
Answer to Question 1..................................................................................................................2
Answer to Question 2..................................................................................................................2
Answer to Question 3..................................................................................................................2
Answer to Question 4..................................................................................................................3
Answer to Question 5..................................................................................................................3
PART B – ANALYSIS OF COMPANY’S FINANCIAL INFORMATION.................................4
Answer to Question 1..................................................................................................................4
Requirement A.........................................................................................................................4
Requirement B.........................................................................................................................4
Requirement C.........................................................................................................................5
Requirement D.........................................................................................................................5
Requirement E.........................................................................................................................5
Requirement F.........................................................................................................................6
References........................................................................................................................................7

2ACCOUNTING FOR MANAGERS
PART A – THE COMPANY
Answer to Question 1
Metcash is regarded as the leading wholesale distribution and marketing company of
Australia. The principal business operations of the company can be seen in three segments of the
retail industry; they are Food, Liquor and Hardware. Metcash provides merchandising,
operational as well as marketing support to these three pillars of business (metcash.com 2019).
Answer to Question 2
Metcash recognizes their revenue to the degree when it is likely that the company will get
the economic benefits and they can measure the revenue on reliable basis. In case of Sale of
Goods, Metcash recognizes the revenue when the buyer receives the risk and rewards. For Rental
Income, the recognition is done on straight-line basis over the term of lease. Revenue from
Supplier Income is recognized based on purchase volume, promotional and marketing activities.
This information can be obtained from Page no. 92, Note 17 of 2018 Annual Report of Metcash
(mars-metcdn-com.global.ssl.fastly.net 2019).
Answer to Question 3
Metcash measures their all classes of property, plant and equipment at cost value after
deducting accumulated depreciation and accumulated impairment losses. The company charges
depreciation on these assets on straight-line basis except freehold land and assets. major
depreciation period for freehold buildings are 25 to 50 years where the same for plant and
equipment are 2 to 20 years. De-recognition of these assets is done at the time of disposal and
when there is no possibility of economic benefits from these assets. This information can be