Accounting Policy Report 2022

Running head: ACCOUNTING POLICY AND EARNINGS QUALITY
Accounting Policy
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ACCOUNTING POLICY AND EARNINGS QUALITY1
Table of Contents
Part A...............................................................................................................................................2
Part B...............................................................................................................................................3
Part C...............................................................................................................................................4
Part D...............................................................................................................................................6
References........................................................................................................................................8

ACCOUNTING POLICY AND EARNINGS QUALITY2
Part A
a) The accounting policy that has been used by the Myer Holding has been done in
accordance with the AASB 118 where relevant accounting standards and classification
were made by the company for the purpose of recognizing the revenue of the company
for the stated time period. The classification of the revenue on a group basis whereby the
company has made critical accounting estimates in the case of loyalty program where
customers accumulate award points for the purpose of purchases made that would be
entitling them to discounts for the future purchases that would be made. The recognition
of the award points are done separately by the company as an individual component of
the initial sales transaction thereby allocating the fair value of the considerations that
would be received between the award points that are ultimately recognised at the fair
value. After the redemption of the award points the company recognizes the associated
revenue for the group revenue that are done (Dunbar & Laing, 2017).
b) There were relevant disclosures and that were made by the company in relation with the
accounting policy of the company and the same were well done by the company to reflect
economic reality in the same correspondence. The accounting choices that were made by
the Myer Holdings Ltd were well in line or consistent with the Australian Accounting
Standard Board with the help of which the accounting policy of the company were made.
The accounting policy of the company should be such that it would be helping the overall
business statement and policy preparation of the company (Komninos & Cameron, 2017).
The strategies undertaken by the group company is taken in such a way that the operated
expected earnings and retail market conditions are well taken into account for the purpose

ACCOUNTING POLICY AND EARNINGS QUALITY3
of analysis along with the prevailing economic conditions. The company views the
material benefits and well into account various benefits and associated judgements that
would be essential for the company for the purpose of correctly classifying and analysing
it in the balance sheet of the company. Myers analyses and well monitors the various
economic and other benefits that would be flowing to the company. There are various
financial disclosures for which accounting choices have been well made by the company
after assessing the nature and characteristics of the expenses and the relevant accounting
choices that would be appropriate for the company given the nature of expenses.
Part B
a) The Board of Directors of Myers Industries Inc has appointed the Audit Committee (AC)
that comprises of minimum of three members. Each of the Committee member would
serve till the earliest of their removal by the Board or his or her successor having been
appointed duly (Cohen & Simnett, 2014). Each of the committee member is independent
based on the legislative provision of Section 303A-02 of the ASX Listed Company
Manual. The Audit Committee meets the criteria for the independence that is set forth in
the Rule 10A-3 under the Corporation Act Act of 2001, subject to the exemptions
explained under the Rule 10A-3(c) of the Exchange Act. The audit member of the Audit
Committee holds expertise in the finance.
The Independent Auditors report states that the financial reports of the Myer
Holdings Ltd are in accordance with the Corporation Act 2001 (Knechel & Salterio,
2016). On the page number 87 of the annual report the company states that its Audit
Committee is an independent in agreement with the independence requirement auditor in