Accounting for Managers: Analysis of Woolworths Non-Current Assets

This assignment analyzes the valuation of non-current assets, specifically focusing on the Woolworths Group. It begins with an introduction to non-current assets, defining them as long-term investments not fully realized within an accounting year, such as property, plant, and equipment. The discussion centers on how Woolworths classifies these assets, particularly those held for sale, and how they are measured at the lower of carrying amount and fair value less costs to sell. The company recognizes impairment losses and gains, with specific guidelines on depreciation and interest recognition. The assignment references Woolworths Group's 2018 annual report and relevant academic literature to support its analysis, concluding with a summary of Woolworths' approach to non-current asset valuation. The company's approach to intangible assets is also briefly mentioned, focusing on cost less impairment and amortization.

Running Head: ACCOUNTING FOR MANAGERS
ACCOUNTING FOR MANAGERS
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Valuation of Non-Current Assets...........................................................................................2
Conclusion..................................................................................................................................3
Reference....................................................................................................................................4

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Introduction
The company’s noncurrent assets are the long-term investments of the company for
which there is no realization of the full value with the accounting year. The examples of it
include plants, property and equipment, intellectual property and so on. The noncurrent assets
appear to be on the balance sheet of the company (Kafka, 2014). Hence, under this
assignment, discussion will be done on the valuation of the non-current assets of the
Woolworth Group. Woolworth Group is one of the major company of Australia that is in the
business of retail throughout Australia as well as New Zealand.
Discussion
Valuation of Non-Current Assets
The Woolworths Group classifies the non-current assets as held for the sale if their
carrying amount will be principally recoverable by the transaction of sale in comparison with
the continuing uses as well as sale is being considered as highly probable. These are being
measured at lower of the carrying amount and the fair values less costs to the sell that is
except for the assets such as assets that arises from the benefit of employee, deferred tax
assets as well as the financial assets that are specifically exempted from the requirement of
measurement (Woolworthsgroup.com.au. 2019).
The company recognizes the impairment loss for any of initial or the subsequent
write-down of assets to the fair value less costs to sale. The recognition is done on the gain
for increase in the fair values less costs to the sale of the assets but it is not in excess of the
cumulative losses of impairment that was recognized previously. The previously recognized
gains or losses by date of sales of the non-current assets are recognized at derecognition date
(Laing & Perrin, 2014). Moreover, there is no depreciation or recognition of the non-current
assets when they are being classified as being held for the sale. Further, the interest as well as

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other expenses is attributable to the classified liabilities that are held for the sale has to be
recognized on continuous basis. The measurement of intangible assets was at the cost less to
the impairment losses as well as amortization. The company has not assessed the amounts of
carrying of the plants, property, equipment, goodwill and intangible assets as well as no any
impairment losses during 2018 (Yao, Percy & Hu, 2015).
Conclusion
Hence, it is concluded from the analysis that Woolworths Group that they measures
the non-current assets at the lower of its fair value and carrying amount less costs to the sell,
which is except for the assets such as deferred tax assets, financial assets exempted from the
requirement of measurement, deferred tax assets and others.

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Reference
Kafka, S. (2014). The classification of non-current assets for accounting
purposes. Економічний часопис-ХХІ, (01-02 (2)), 68-71.
Laing, G., & Perrin, R. W. (2014). Deconstructing an accounting paradigm shift: AASB 116
non-current asset measurement models. International Journal of Critical
Accounting, 6(5/6), 509-519.
Woolworthsgroup.com.au. (2019). Retrieved 15 August 2019, from
https://www.woolworthsgroup.com.au/icms_docs/195396_annual-report-2018.pdf
Yao, D. F. T., Percy, M., & Hu, F. (2015). Fair value accounting for non-current assets and
audit fees: Evidence from Australian companies. Journal of Contemporary
Accounting & Economics, 11(1), 31-45.