Inventory Accounting Policies of JB Hi-Fi Limited

ACCOUNTING AND GOVERNANCE
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Executive Summary
The report aims to present the accounting policies of JB Hi-FI in regards to inventory as
reported in the annual report for FY2018. In relation to reporting inventory, it has been
reported that the company reports the lower value from the cost and the realisable value from
inventory after adjustment of selling costs. Cost of goods used is computed considering
weighted average cost. Also, it has been highlighted that any changes in this regards can
potentially significantly alter the income statement by altering the cost of sales and
profitability. In relation to determine the inventory related accounting rules, the accountant
needs to consider host of factors including the accounting standard norms, business type and
inventory nature.
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Table of Contents
Executive Summary...................................................................................................................1
Table of Contents.......................................................................................................................2
Introduction................................................................................................................................2
Inventory Accounting Policies – JB Hi-Fi Limited...................................................................3
Consideration of Factors............................................................................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6
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