Accounting and Financial Analysis of Westfarmers Limited Report

This report provides an in-depth accounting and financial analysis of Westfarmers Limited, a major retail company operating in Australia and New Zealand. It examines the company's key goods and services, including agrochemicals, coal, and retail units like Coles and Bunnings. The analysis explores both financial and non-financial interests, assessing how the company's organizational structure impacts its accounting, financial decisions, and business outcomes. The report also reviews applicable accounting standards, including adherence to Generally Accepted Accounting Standards (GAAP) and sustainability reporting practices, which are crucial for stakeholder accountability. The financial performance is evaluated using data from 2017 and 2018, considering the competitive business environment and market dynamics. The report references key financial reports and research articles to support its findings, highlighting the importance of sustainability reporting in modern financial disclosure.

Running head: ACCOUNTING AND FINANCIAL ANALYSIS OF WESTFARMERS 1
Accounting & Financial Analysis of West farmers Limited
Your Name
Institutional Affiliation

ACCOUNTING AND FINANCIAL ANALYSIS OF WESTFARMERS LIMITED 2
Accounting & Financial Analysis of West Farmers Limited
Wesfarmers is a retail company that operates in Australia and New Zealand. The
company deals with products such as agrochemicals, coal, fertilizers, industrial and other
mining and safety products. With its headquarters in Perth- West of Australia, Wesfarmers
has its origins dating back to 1914. The company has four retail business units namely Coles,
Home Improvements, Department Stores and Office Works. This paper seeks to discuss the
key goods and services for West farmers, identify financial & non-financial interests of the
company, and assess how the organization of the company is affecting the accounting,
financial and subsequent business decisions of the company. Applicable Accounting
standards and Sustainability reporting for each of the retail sections is also reviewed and rated
Company Selection
West Farmers is my favourable company for study because it has many retail sections
which can be explored. The retail stores include; Coles, Office Works, Department Stores,
and Home Improvements. Moreover, the company has been doing well in terms of
sustainability reporting which is an emerging trend when it comes disclosure in financial
reporting. Financial reporting is my professional interest and therefore, the study will enable
me to gain more insights into the role of sustainability as part of disclosure in financial
reporting.
Key Goods and Services of the Company
The main products for the company include goods such as agrochemicals, coal,
fertilizers, industrial and other mining and safety products.

ACCOUNTING AND FINANCIAL ANALYSIS OF WESTFARMERS LIMITED 3
Financial Interests and Non-Financial Interests of the Company
In a nutshell, the company is interested in both financial and non-financial matters.
For the purpose of this study, for me, I am interested to explore both the financial and non-
financial information of the company. Financial information helps to assess the financial
strength and viability of the company in terms of return on investment. Non-financial
information helps to understand the environment and the organizational set up that the
company is operating in and its effects on accounting financial information that adversely
affects subsequent business decisions.
Financial Context of West Farmers Limited
With its various business lines, the financial performance of West farmers can be
evaluated by looking at the 2017 and 2018 financial reports. The financial performance of
each retail section gives us an insight into the overall financial and non-financial performance
of the company as a whole.
Business Environment and How It Affects Accounting Standards
Despite operating in a very competitive working environment and a slowly growing
market for some retail sections such as coal, West farmers has remained committed to
customer-led strategies of increasing sales income. Since the company has it origins in
Australia, it has always prepared its books of account and financial statements by adhering to
Generally Accepted Accounting Standards and Australia GAAP's. The company has also
been on the forefront in terms of sustainability reporting.
Sustainability Reporting by West farmers Limited

ACCOUNTING AND FINANCIAL ANALYSIS OF WESTFARMERS LIMITED 4
Sustainability reporting is one of the recent developments of disclosure in financial
reporting. From a number of research studies, sustainability reporting has been found to be a
reporting framework that fosters accountability in a company. The findings of such
researchers are also supported by the propositions of the legitimacy, stakeholders and the new
institutional theories ("Sustainability Reporting", 2018). Through its sustainability report,
West farmers show accountability to all the stakeholders of the organization including the
customers and the communities in which it operates.

ACCOUNTING AND FINANCIAL ANALYSIS OF WESTFARMERS LIMITED 5
References
Ahern, D. (2016). Turning Up the Heat? EU Sustainability Goals and the Role of Reporting
under the Non-Financial Reporting Directive. European Company And Financial Law
Review, 13(4). doi: 10.1515/ecfr-2016-5007
Bunnings, Kmart and Officeworks were the winners, while Target and Coles struggled.
(2018). Retrieved from http://www.news.com.au/finance/business/retail/wesfarmers-
profits-up-13-per-cent-to-16-billion-as-bunnings-kmart-and-officeworks-shine/news-
story/6cf0b1116a53f01b7d9e93b320f21586
Group, D. (2019). 2018 Half-year Results. Retrieved from
https://www.wesfarmers.com.au/util/news-media/article/2018/02/20/2018-half-year-
results
Sustainability Reporting. (2018). Retrieved from
https://www.globalreporting.org/information/sustainability-reporting/Pages/
default.aspx