Accounting For Managers Report 2022

ACCOUNTING FOR
MANAGERS
HARVEY NORMAN

PART A: THE COMPANY REPORT
Answer 1)
The entity is principally engaged in the activities of integrated retail, property, franchise and
digital enterprise (Harvey Norman, 2019a). The products that are sold under the various
brand names are the electrical goods, furniture, kitchen appliances, computerised
communications, small appliances, and others.
Answer 2)
For the purpose of revenue recognition, the entity follows the AASB 15. When the said
accounting standard is applicable on the franchise agreements, the amount that is expected by
the entity to be received from the operating activities of the franchise agreements when the
sale of the goods is made that is when the control over the product is obtained by the
customer (Harvey Norman, 2019b). The above policy is described on the page number 76 of
the annual report note (f).
Answer 3)
The valuation of the plant and equipment is done at the historical costs. In contrast to this, the
owner occupied land and buildings are first recognised at cost and the later valuation of such
land, leasehold land and buildings is done at the fair values (Harvey Norman, 2019c). The
determination of such fair values is done with reference to the market evidences as obtained
by the external valuers. The valuation of the property, plant and equipment is elaborated on
page number 70 and the paragraph (vi).
Answer 4)
For the financial period ending on June 30th, the auditors of the company were the Ernst &
Young. Apart from the legal mandatory requirements in the Corporations Act 2001 and
accounting guidelines, the general requirement of the auditors independence is due to the fact
that the decisions of the potential lenders, investors and the business regulators is dependent
upon the externally audited financial statements. The said reports provide the reasonable
assurance that the financial statements are devoid of the material misstatements (Delen,
Kuzey and Uyar, 2013). The external examination of the financial statements increases the
reliability of the financial information.
Answer 5)

A number of initiatives have been undertaken by the company on the lines of the sustainable
business practices in varied areas. The entity fulfils its obligations of the state and federal
environmental guidelines and accordingly the company has complied with the new legislated
requirement of a minimum of 70 microns thickness plastic bags. In addition, the company has
introduced initiatives on the lines of recycling and management of waste in conjunction with
Australian Packaging Covenant (“APC”), as stated on page 56 (Harvey Norman, 2019d).
Further, the entity continues to support Aboriginal people such as Australian Indigenous
Mentoring Experience (AIME) program.