Property Plant and Equipment Valuation

This presentation discusses the importance of valuing physical and tangible assets, specifically Property, Plant and Equipment (PPE), in order to report fair values to stakeholders. It analyzes the complexities and key issues involved in accounting for PPE, provides a detailed explanation of the PPE disclosures made by the company, and critically analyzes to what extent the latest annual report of the company meets the disclosure requirements of accounting for PPE as per AASB 116. The presentation concludes that the company has an efficient valuation and reporting system and recommends that the company follows the same in the future valuation and reporting activities.

Property Plant and
Equipment Valuation

Introduction
Valuation of physical and tangible asset is
very crucial for a company to conduct in
order to fairly report these value to the
stakeholder showing the financial position of
the firm. Property, Plant and Equipment is
also tangibles asset valuation of which is very
necessary in order to report fair values of the
following the financial reports of the firm.

Introduction
Current asset are very crucial to value at fair
measurement
It can be said that valuation PPE is to done
under AASB 116
The Disclosures are to be made in
accordance to IFRS as Woolworths the
selected company follows IFRS guidelines

Critical analysis of some of the complexities
and key issues involved in accounting for PPE
PPE valuation is a complex process
Involvements of Depreciation, amortization,
impairment and carrying value make the
valuation complex (Xu et al. 2017)
Two methods of valuing one at cost and other
at revaluation

Providing a detailed explanation of the PPE
disclosures made by the company
Valuation is done via Cost – Deprecation and
amortization – Impairment expense (Perera
and Chand, 2015)
Woolworths follows straight Line
depreciation method
The life of all PPE are defined and
categorized according to there useable
potentials

Critically analyzing of to what extent the latest annual
report of your company meets the disclosure
requirements of accounting for PPE as per AASB 116
The company comply to AASB 116 in
valuation of there PPE.
The firm values the PPE at Cost –
Deprecation and amortization – Impairment
expense (Abbott and Tan‐Kantor, 2018)
In valuing leasehold properties the company
also followed the AASB standards

Critically discussing to what extent the disclosures of PPE align with the
objective of general purpose financial reporting
The company has fulfilled the object set
under the general purpose financial reporting
The company has provided in-depth analysis
over the valuation of PPE giving a proper
overview of the methods undertaken (Yao et
al. 2015)
The company has followed the IFRS for
fulfilling the objectives

Conclusion and Recommendations
It is concluded that the company has a
efficient valuation and reporting system
It is recommended that the company follows
the same in the future valuation and
reporting activities.

References
Abbott, M. and Tan‐Kantor, A., 2018. Fair Value Measurement and
Mandated Accounting Changes: The Case of the Victorian Rail Track
Corporation. Australian Accounting Review, 28(2), pp.266-278.
Perera, D. and Chand, P., 2015. Issues in the adoption of international
financial reporting standards (IFRS) for small and medium-sized
enterprises (SMES). Advances in accounting, 31(1), pp.165-178.
Tan‐Kantor, A., Abbott, M. and Jubb, C., 2017. Accounting Choice and
Theory in Crisis: The Case of the Victorian Desalination Plant.
Australian Accounting Review, 27(3), pp.273-284.
Xu, W., Davidson, R.A. and Cheong, C.S., 2017. Converting financial
statements: operating to capitalised leases. Pacific Accounting
Review, 29(1), pp.34-54.
Yao, D.F.T., Percy, M. and Hu, F., 2015. Fair value accounting for non-
current assets and audit fees: Evidence from Australian companies.
Journal of Contemporary Accounting & Economics, 11(1), pp.31-45.

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