Accounting for Tangible Assets: A Case Study of Woolworths Group

Introductory Accounting

Contents
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................4
Question 1........................................................................................................................................5
Question 2........................................................................................................................................8
Question 3......................................................................................................................................11
References......................................................................................................................................14
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Executive Summary
The aim of the assignment is to make understand the measurement of depreciable assets on
the balance sheet which is very important from company’s point of view. Not only this it
includes the measurement of initial cost and the subsequent cost, which will enable a person
to determine the outlay that could be incorporated in the cost of a tangible asset .i.e. property,
plant and equipment and also inform the depreciation that needs to be deferred every year
based on the calculation of the useful life of said piece of tangible asset. It suggests the
disclosure of initial and substantial cost, estimation of functional life of the asset based on the
market standards, and the reduction to be charged for an item tangible asset. It covers the
aspect of AASB 116 Property, plant and Equipment.
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Introduction
Tangible assets are any physical asset owned by the company that are used to carry out the
business and has finite monetary value which depreciates over the period of time. For
Example, land, furniture, building, machinery or equipment, etc. This assignment aims to
make understand the measurement of depreciable assets on the balance sheet. It involves
measurement of various assets in decisive financial amount at which assets are recognized
and conceded in balance sheet. It reflects the basis for measuring the tangible assets on the
balance sheet, initial recognition and subsequent by the company and the disclosure
requirements for usefulness of the decision makers. For this purpose WOODWORTH
GROUP has been selected to showcase the examples of the same.
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