Woolworths' Compliance: A Research Proposal on Accounting Standards

This research proposal delves into the accounting standards implemented by Woolworths, focusing on compliance with Australian Accounting Standards (AASB) and International Financial Reporting Standards (IFRS). It examines whether Woolworths' financial statements are documented in accordance with these standards, the awareness of auditors and accountants regarding recent amendments, and the harmonization between domestic and international standards. The proposal also investigates the role of the Audit, Risk, Management & Compliance Committee in reforming the corporate reporting framework. The research aims to assess the implementation of accounting principles, recent amendments awareness, and the alignment of domestic and international accounting standards within Woolworths' financial reporting practices. It uses both primary and secondary data collection methods, employing quantitative and qualitative analysis to evaluate the company's adherence to established accounting standards and regulations.

Running head: Accounting Standards in Woolworths
Accounting standards in Woolworths

Accounting Standards in Woolworths 1
Executive Summary
The chosen topic for the research proposal is ‘Accounting Standards in Woolworths’. The
Australian Accounting Standards Board (AASB) is a governing agency in Australia which
evaluates and regulates the accounting standards applicable to the companies operating in the
public and private sector of Australia. The Australian Accounting Standards have adopted the
International Financial Reporting Standards (IFRS). Through the adoption of the international
standards of accounting, there has been more transparency in the delivering of financial
information to the stakeholders by Woolworths.
So, in this research proposal, the accounting standards implemented by Woolworths will be
analyzed. Also, the research problems relating to the applicability and implementation of the
accounting standards in the company will be assessed and discussed.

Accounting Standards in Woolworths 2
Contents
Client Organisation......................................................................................................................................3
Research Background..................................................................................................................................4
Research Problem / Research Question.......................................................................................................4
Research Aim and Objectives......................................................................................................................5
Literature Review........................................................................................................................................5
Keywords for Literature Review..............................................................................................................6
Data Collection Plan....................................................................................................................................7
Ethical Consideration..................................................................................................................................7
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8

Accounting Standards in Woolworths 3
Client Organisation
The topic of the research proposal is ‘Accounting Standards in Woolworths’. The accounting
standards in Australia are developed and regulated by the Australian Accounting Standards
Board (AASB). The AASB contributes to the development of the accounting standards which
are applicable world wide and encourages the Australian entities to adopt these standards.
According to Woolworths Group (2018) the company operates in retail business throughout
Australia and New Zealand. Headquartered in New South Wales, it is the second largest
company in Australia in terms of revenue. It was the 19th biggest retailer worldwide in 2008.
The consolidated financial statements of the company have been prepared according to the
International Financial Reporting Standards(IFRS), Australian Accounting Standards and the
Corporations Act 2001 (KPMG, 2018).

Accounting Standards in Woolworths 4
Research Background
As per Woolworths Group (2016) the reasercher is attempting to find out whether the
consolidated financial statements of the company have been prepared according to the the
International Financial Reporting Standards (IFRA) , Australian accounting Standards and the
Corporations Act 2001.
The reaserch would be upon analyzing that if there is a harmonization among the domestic
and the international accounting standards.Also, the researcher would be assessing if the
financial statements have been documented according to AASB 3 which pertains to the
reliability and transparency of the information reports in the financial statements in the context
of the business combinations and the accounting standards such as AASB10, 13, 16 and 101 are
applicable on the documentation of the financial statements of the company.These issues will
be resolved in the research as they pertain to the compliance with the IFRA, Australian
Accounting Standards and the Corportaions Act 2001 (Australian Accounting Standards
Board ,2016).
Research Problem / Research Question
The research proposal has attempted to target on the questions such as :
 Are the financial statements of Woolworths documented in accordance with the
Australian Accounting Standards?
 Are the auditors and accountants aware of the recent amendments in the Australian
Accounting Standards?
 Is there any harmonization regarding the domestic and the international accounting
standards?
 Has the management of the company formulated the Audit, Risk, Management &
Compliance Committee for the reformation of the corporate reporting framework?

Accounting Standards in Woolworths 5
Research Aim and Objectives
The crucial aspects of the research are to analyze if the financial statements of Woolworths
have been documented according to the Australian Accounting Standards. The Audit, Risk,
Management and Compliance Committee have been formulated to supervise the
implementation of the accounting principles while documneting the financial statements or
not. Also, the researcher aims to assess if the auditors of the company are aware of the recent
amendments in the Australian Accounting Standards and the harmonization between the
domestic and the international accounting standards (Australian Accounting Standards Board,
2016).
Literature Review
According to Ironkwe and Ordu (2015) harmonization is a procedure to increase the similarity
between the accounting methods practiced in the home country with the methods practiced at
the international level. So, the accounting methods practiced in Australia are harmonized with
those practiced internationally.
Also, the consolidated financial statements of the company should be documenetd according to
the AASB, IFRS and Corporations Act 2001.
As per Unegbu (2014) AASB 107 Statement of Cash Flows, the cash flows related to the
borrowings and their repayments which are maturing within a period of three months or less
should be stated on a net basis .The cash flows of Woolworths are presented in the financial
statements accordingly. The company also follows AASB 16 and the operating lease
commitments have been affirmed which shall comprise of lease contracts which are legally
binding and existing at 28 June 2015 and for the subsequent period.
The company should prepare the the Consolidated Statement of Income and Consolidated
Statement of Profit and Loss according to AASB 10.The balances and transactions related to
the inter group and any unrealized profits and losses are avoided while preparing the financial
statements .

Accounting Standards in Woolworths 6
The auditors of Woolworths are aware of the recent amendments in the accounting policies and
standards of Australia. The implementation of AASB 108 Accounting Policies, Changes in
Accounting Estimates and Errors would make the documentation of the financial statements
more comprehensible.
The structure for the documentation and presentation of the financial statements pertain to its
various assumptions relating to the concept of going concern, liabilities, assets , income and
expenses (Sačer, 2015).
The company has formulated the Audit, Risk Management and Compliance Committee for the
reformation of the corporate reporting framework. The role of the committee is to assist the
board regarding the matters reacted to risk management of the accounting policies, internal
controls and compliances (Brennan and Kirwan, 2015).
Keywords for Literature Review
 Financial statements of Woolworths prepared in accordance with the Australian
Accounting Standards.
 Auditors and accountants are aware of the recent amendments in the Australian
Accounting Standards.
 Harmonization between the Australian Accounting Standards and the International
Accounting Standards.
 Management of the company has formulated the Audit, Risk, Management &
Compliance Committee for the reformation of the corporate reporting framework.

Accounting Standards in Woolworths 7
Data Collection Plan
For this research, the researcher will use the primary and secondary data collection
methodology and the quantitative and qualitative methods of collecting data from various
sources. There are different kinds of data collection methods like the observation, survey with
the help of questionnaire and interviews to gather data. Besides this, the secondary sources of
data collection such as assembling data from existing sources such as journals, government
publications, offline sources and books etc. The researcher shall also apply MS Excel tools like
bar and column diagrams and pie charts to assess the collected data (Sutton and Austin,2015).
Ethical Consideration
Pertaining to this research, the researcher has used the Data Safety and Security Act 1988 to
safeguard the data of the participants and to establish a healthier relationship with them .The
researcher has also adopted the Norwegian National Committee for Research Ethics which
expresses that the participants of the research should be treated with respect. The proposals
should be designed and implemented in a fair manner. The researcher should not disclose the
data collected form the participants and gather data with their consent. The data collected
should be impartial and unbiased by any research participant.
Conclusion
Hence, to conclude, it can be said that the topic of the research proposal ‘Accounting Standards
in Woolworths ‘has been evaluated by the researcher. The researcher has assessed different
aspects of the study and concluded that the harmonization of the international and domestic
accounting policies is necessary for the efficiency of the corporate reporting. Also, the auditors
must be aware of the recent amendments of the accounting policies and the formulation of the
risk and audit committee in the company.

Accounting Standards in Woolworths 8
References
Australian Accounting Standards Board (2016) AASB 10 [online] Available from:
http://www.aasb.gov.au/admin/file/content105/c9/AASB10_07-15_COMPdec15_01-18.pdf
[Accessed 10th April 2018].
Australian Accounting Standards Board (2016) Framework for the Preparation and Presentation
of Financial Statements [online] Available from:
http://www.aasb.gov.au/admin/file/content105/c9/Framework_07-04_COMPjun14_07-14.pdf
[Accessed 10th April 2018].
Brennan, N.M. and Kirwan, C.F.(2015)Audit Committees: Practices, Practitioners and Praxis of
Governance. Accounting, Auditing and Accountability Journal. 28(4), pp. 466-493.
Ironkwe, U. and Ordu, P.A.(2015) The convergence of Accounting Standards to International
Financial Reporting Standards (IFRs): Issues and Prospects in Nigeria. International Journal of
Research in Business Studies and Management. 2(7), pp. 1-13.
KPMG (2018) Financial Reporting & Accounting Standards [online] Available from:
https://home.kpmg.com/au/en/home/services/audit/financial-statement-audit/financial-reporting-
accounting-standards.html [Accessed 9th April 2018].
Sačer, I.M. (2015) The regulatory framework of accounting and accounting standard-setting
bodies in the European Union member states. Financial Theory and Practice. 39 (4), pp. 393-
410.
Sutton, J. and Austin, Z. (2015) Qualitative Research: Data Collection, Analysis, and
Management. The Canadian Journal of Hospital Pharmacy. 68(3), pp. 226-231.
Unegbu, A.O. (2014) Theories of Accounting: Evolution & Developments,
IncomeDetermination and Diversities in Use. Research Journal of Finance and Accounting.
5(19), pp. 1-16.
Woolworths Group (2016) 2016 Annual Report [online] Available from:
https://wow2016ar.qreports.com.au/xresources/pdf/wow16ar-full.pdf [Accessed 9th April 2018].

Accounting Standards in Woolworths 9
Woolworths Group (2018) About Us [online] Available from:
https://www.woolworthsgroup.com.au/page/about-us/ [Accessed 9th April 2018].