Corporate Accounting Presentation

CORPORATE
ACCOUNTIN
G
R A I S I N G F U N D S F O R C O R P O R A T E O P E R A T I O N S A N D
L I A B I L I T I E S , P R O V I S I O N S , C O N T I N G E N T L I A B I L I T I E S A N D
C O N T I N G E N T A S S E T S . M E A S U R E M E N T B A S I S F O R A S S E T S
( W E S F A R M E R S L I M I T E D A N D J B H I - F I L I M I T E D )

DIFFERENT SOURCES OF FUND
Wesfarmers
Interest bearing loans and borrowings, issued capital, reserves, retained
earnings and current liabilities (wesfarmers.com.au 2019).
JB Hi Fi
Borrowings, contributed equity, reserves, retained earnings and current
liabilities (investors.jbhifi.com.au 2019).

EVOLUTION OF FUNDS
WESFARMERS: Interest bearing loans and borrowings under current liabilities have decreased from 2017 to 2019; that
is $1347 million in 2017, $1159 million in 2018 and $356 million in 2019. The same trend can be seen in case of interest
bearing loans and borrowings under non-current liabilities. The main reason for this decrease is the large repayment of
borrowings. Issued capital has decreased over the years that is $22268 million in 2017, $22277 million in 2018 and
$15809 million in 2019 (wesfarmers.com.au 2019). The reserves have also decreased over the years and 2019 has
registered negative reserve and this is because of accumulated losses due to poor business performance. Wesfarmers
has also reported accumulated losses in 2019 after the reduction of retained earnings from 2017 to 2018
(wesfarmers.com.au 2019).
JB HI-FI: In JB Hi-Fi, the borrowings have decreased over the last three years that is $558.8 million in 2017, $469.4
million in 2018 and $439.1 million in 2019: and continuous repayment of borrowings is the main reason for this reduction
in the source of fund (investors.jbhifi.com.au 2019). Contributed equity has increased from $438.7 million in 2017 to
$441.7 million in 2018 and then decreased in 2018 that is $434.8 million. This is due to the deviation in the issue of
shares and share prices. JB Hi-Fi has increased its reserve from 2017 to 2019 continuously that is $33.2 million in 2017,
$42.7 million in 2018 and $53.7 million in 2019. Like reserves, retained earnings of the company has also increased
continuously from 2017 to 2019; that is $381.6 million in 2017, $463.2 million in 2018 and $555.6 million in 2019
(investors.jbhifi.com.au 2019).

PERCENTAGE OF INTERNALLY
GENERATED AND EXTERNALLY
GENERATED FUNDSWesfarmers
Particulars 2019 ($m) % 2018 ($m) % 2017 ($m) %
Externally Generated
Funds
Interest bearing loans and
borrowings (Current and
non-current) 3029 23.16% 4124 15.32% 5413 18.42%
Issued capital 15809 120.85% 22277 82.75% 22268 75.79%
Total 18838 144.01% 26401 98.07% 27681 94.22%
Internally Generated
Funds
Reserves -5549 -42.42% 344 1.28% 190 0.65%
Retained Earnings -208 -1.59% 176 0.65% 1509 5.14%
Total -5757 -44.01% 520 1.93% 1699 5.78%
Total Funds 13081 100.00% 26921 100.00% 29380 100.00%JB Hi-Fi
Particulars 2019 ($m) 2018 ($m) 2017 ($m) %
Externally Generated
Funds
Borrowings 439.1 29.60% 469.4 33.13% 558.8 39.57%
Contributed Equity 434.8 29.31% 441.7 31.17% 438.7 31.06%
Total 873.9 58.92% 911.1 64.30% 997.5 70.63%
Internally Generated
Funds
Reserves 53.7 3.62% 42.7 3.01% 33.2 2.35%
Retained Earnings 555.6 37.46% 463.2 32.69% 381.6 27.02%
Total 609.3 41.08% 505.9 35.70% 414.8 29.37%
Total Funds 1483.2 100.00% 1417 100.00% 1412.3 100.00%