Financial Reporting of EBOS Group: Property, Plant and Equipment, Intangible Assets, Provisions, Leases and Revenue

FINANCIAL REPORTING 1
FINANCIAL REPORTING

FINANCIAL REPORTING 2
Introduction:
The company chosen is EBOS Group which deals in the healthcare, medical and the
pharmaceutical products. The company is also a very leading marketer and distributor of the
animal are products of the company of Australia.
The company has about more than 3,000 employee in about 52 different locations all across
the country of Australia (EBOS, 2018).
Plant and equipment and property:
In respect of plant, property and equipment, the amount reports its values at their recoverable
amounts. This goes on to include in the goodwill as at the date of the balance sheet. In case,
the carrying value of the asset is more than the asset, then the expense is recognised as an
impairment expense which is reported in the statement of income. The Annual report of the
company states that it has some separate cash generating units. The recoverable amounts of
these assets is the higher of the value in use or the fair value less the costs of selling. The
present values of the future cash flows have been calculated in, in the case of these assets.
The company depreciates and amortises its assets on the basis of straight line basis. But the
assets other than the freehold land are deprecated at their costs less there residual values.
In respect of the Accounting policies, the notes to the financial statements states that the
carrying values of these assets are reviewed at regular intervals for the purposes of
determining as to whether there is any indication of any impairment in the value of the asset
or not. In case, there is any such indication, then the recoverable amount of the asset is
calculated for determining the loss of impairment. The company estimates in the recoverable
amounts of the assets wherein the asset does not have any specific cash generating unit. The
recoverable amount is considered to be the higher of the fair values less the costs of selling
and the value which is in use. For the purposes of assessing in the value in use, all of the

FINANCIAL REPORTING 3
future expected cash flows are discounted at their present values on the basis of the pre-tax
discount which indicates in the market conditions and the connected time value of money and
also the various risks that are connected with that asset.
The property, plant and equipment are reported at their cost which is the original
consideration which has been paid towards the purchase of that asset and which is directly
connected with the location and the condition for its intended use. After the cost has been
recognised, it- is reported at their respective costs less the accumulated depreciation. The
amount of the depreciation charged on these assets is calculated using the straight line
method of deprecation. This method helps in the allocation of the cost or the fair value
amount of the asset less any amount of the residual value over the estimated number of the
lives of the company.
Intangible assets:
a. The company has goodwill and other indefinite life intangibles as have bene disclosed
in their annual report. The indefinite life intangibles include Terry white Chemmart
Brands, other pharmacy brands, franchisee network, animal care brands, Trademarks.
And the finite intangibles include the customer relationships and contracts.
b. The company has disclosed these intangibles in the most apt manner since it has
disclosed these ta their net values on the face of the Balance sheet and in the notes to
the financial statements, it has shown its values, the impairment loss that has been
calculated on these and the net values. And the method through which the impairment
has been calculated on these. The notes also states in the different calculations.
Provisions and contingent liabilities:
a. The company has provided a provision for the employee expense. The provision has
been made for the benefits which pertains to the employees and are owed by the