Financial Reporting of JB Hi-Fi: Examining the Six Capitals

Advanced Financial Reporting

Table of Contents
Introduction...........................................................................................................................................2
Main Context.........................................................................................................................................2
Identifying the problem.....................................................................................................................2
Determining relevant information......................................................................................................3
Enumerating options..........................................................................................................................4
Assessing and making preliminary decisions.....................................................................................4
Listing reasons explicitly...................................................................................................................6
Self-correcting...................................................................................................................................7
Conclusion.............................................................................................................................................7
References.............................................................................................................................................8
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Introduction
JB Hi-Fi was founded in the year 1974 which offers leading brands consisting of Television,
Tablets, Computers, Car Sound, Speakers, Hi-Fi, Cameras, Home Theatre and Portable
Audio. The company also offers a wide range of games, Blu-Ray and DVD music, recorded
music, television shows and DVD movies. The company has managed to establish its brand
in the market by offering its products at the cheapest prices to the customers (JB Hi-Fi, 2018).
The financial report is being prepared by the organization for providing important
information to the stakeholders. The true and fair value depiction of the financial items is
considered to be crucial for any organization. The main focus of the paper is to determine and
examine the financial reporting of JB Hi-Fi. The business model has been developed and
adopted by keeping in mind the operational activities of the organization.
Main Context
Identifying the problem
The most “material” capitals are to be determined included in the Integrated Report for JB
Hi-Fi. It is being argued that financial reporting does not disclose all the information needed
by investors and other stakeholders. The financial information is to be recognized in the
operating and financial review and comply with the ASX corporate governance
recommendations and principles (Bontis, Bart & Wakefield, 2007). However, there is
additional reporting which is based on the International Integrated Reporting Framework
(IIRF). The business model as per IIRF is based on six capitals that are manufactured,
financials, the human, the intellectual, natural, social and relational capital.
Materiality is referred to providing incorrect or missing information in the financial
statements which are considered to be imposing a significant impact on the decision-making
process of the users. A business model is referred to the framework of a company which
assists in generating sales revenues and profits. It provides direction to the organization of
what products or services are to be manufactured and how to be supplied in the market. The
integrated reporting was introduced for improving the usefulness of corporate reporting. The
main aim of integrated reporting is to provide a holistic form and appropriate corporate
reporting (Britton & Waterston, 2013).
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