ans 1: The principal activities of Myer is to deliver altogether enhanced profitability, a re-empowered range, in-store involvement and market-driving omnichannel ability and a client-drove offer conveyed through significant categories, needed brands and privately custom tailored offers. Myer retails a wide range of items crosswise over women’s, men’s and kids’ clothing, footwear and frill; beauty care products and scent; homewares; electrical; furniture and bedding; toys; books and stationery; sustenance and confectionery; and travel merchandise. Myer’s primary retail establishment rival is David Jones. Myer has for some time been Australia’s biggest retail chain by income and store count.ans 2: Myer is following the law AASB 15 which states “Revenue from Contracts with Customers is a new revenue recognition standard that’s core principle is that revenue must be recognised when the control of goods or services are transferred to the customer, at the transaction price. The standard is not applicable until 1 January 2018 and the Group does not expect the standard to have a significant impact.
” (Myer annual report 2017)Page 106 of Myer Annual Report 2017.ans 3: page 75. Myer values all classes of property plant and equipment at cost less depreciation. Cost may also include transfers from equity of any gains/losses on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate the cost net of their residual values, over their estimated useful lives ans 4: The audit firm responsible for performing the audits of the financial statements of Myer is PwC Australia.The auditor must declare their independence because the auditors are supposed to check if the bank statements, reconciliation statements are uniformed and in par with the bank account itself. Also, to check if the depreciations methods used are consistent with previously done depreciation and check if the plants and equipments are stated correctly, not over or under valued. The taxes are paid accurately, properly, and on time.
the financial operations happening in the company are similar to those mentioned in the company’s books. Thus the auditor must declare independence so that he/she can work faithfully and not have any direct connection with the firm if there are traces of fraud or corruption inside of the firm.An external audit is required to assure whether the financial statements are free of material misstatements that are a result of error or possible fraud