Detailed Financial Statement Analysis of JB Hi-Fi Limited

This report provides a financial analysis of JB Hi-Fi Limited, an Australian retailer specializing in consumer goods. The analysis covers the company's structure, including its subsidiaries in Australia and New Zealand, and the composition of its audit and remuneration committees. It examines the preparation of consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) and discusses the company's funding strategies, including mergers and acquisitions and debt financing. The report also touches on corporate governance, audit committee functions, sustainability initiatives, and the treatment of non-controlling interests. Furthermore, it addresses impairment considerations, foreign currency transactions, and provides suggestions for improved compliance with accounting standards and enhanced corporate social responsibility reporting. References to relevant academic articles and corporate reports are included to support the analysis.

Introduction
JB Hi-Fi is an Australian store of customer
goods, concentrating in video games,
DVDs, Blu-rays, Ultra HD Blu-rays, CDs.
The company is visibly listed on the ASX.
Its Head Office is located at Chadstone
Shopping Centre in Melbourne.
In the year 2006-07, the company
extended into New Zealand.

Composition of the Group
The subsidiaries of the company are:
In Australia:
 JB-HI-FI Group Pty Ltd
 Clive Anthonys Pty Ltd
Rocket Replacement Pty Ltd
M.E.W (Australia) Pty. Ltd
The Muir Finance Company Pty
In New Zealand:
JB HI-Fi Group (NZ) Limited
JB Hi-Fi NZ Limited.

Audit Committee:
The Non-Executive directors:
Beth Laughton (on going member and
chair of committee)
Wai Tang (On going member of Committee)
Mark Powell (On going member of
committee since 13th March 2017)
Remuneration Committee
Beth Laughton (on going member of
Committee)
Joint Venture- The Good Guy Stores

Preparation of Consolidated
Financial Statement
The annual report of JB HI-FI Limited has
of the financial statement of the
corporation has been complying with the
International Financial Reporting
Standards that is required by Accounting
Standards AASB 101.
It is stated in the integrated report.
(Jbhifi.com.au 2017).

Funding of the Group
Beth Laughton, is the chairperson of the
audit committee managing risk of GPT.
The company arranges fund through
merger and acquisition debt finance.
For group acquisition company
undertook pro-rata entitlement. The
company issued 0.4 million ordinary
shares according to Group`s share option
plans.

Company`s Policy
 Corporate Governance
 The annual report has not stated regarding the
corporate governance policies clearly.
 Audit Committee
 The committee basically charge in assist the board
to oversight the relevance along with the integrity
of the Group`s fiscal reporting and management
disclosure also includes non-fiscal reporting.
 Sustainability
 JB-HI-Fi business involved in the Carbon Disclosure
Project along with the Australian Packaging

Non- Controlling Interest
 The transaction regarding the alteration
in the interest of ownership is treated
with the non-controlling interest.
 The alteration of ownership interest is
seen as the outcome of adjustments
among the carrying amount regarding
the interest in subsidiary.
 The non-controlling interest is recorded in
the balance sheet under reserve.
(Bhargava Bhandari and Choudhury,

Acquisition Impairment
 JB Hi-Fi's income rose to 13.3 per cent, though
causal revenue that exposed out $22.4 million in
prices rallied to the November, 2016 acquisition of
white goods and chattels vendor.
 JB Hi-Fi stores was up to 36.5 per cent. The
impairment is recorded in the balance sheet.
 Foreign Currency Transaction
 The company had foreign currency reserve
amounted to $ 4.9 million in year 2017. The amount
present in the financial statements are presented in
the AUD that is JB-Hi-Fi functional as well as

Suggestions
The enterprises have to trailed the ethics or
necessities of AASB appropriately.
The corporations need to trail the AASB standards
appropriately.
The company’s prerequisite to display the
consolidated financial statements for minimum
last three years for the contrast can be done
appropriately.
At the equivalent time, the corporations must
public around their corporate social responsibility
actions in their annual reports.

Reference
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