International Journal Information Research -Myassignmenthelp.Com

Question: Discuss About The International Journal Information Research? Answer: Introduction: The assessment mainly aims in identifying the value of inventories depicted in the annual report of JB Hi-Fi Limited. The measures used by the organization in valuing their inventory are adequately depicted in the following assessment. Accounting policies used by JB Hi-Fi Limited in their annual report are also evaluated to identify the actual standards that was used by the company in valuing their inventory. Furthermore, relevant identification is conducted on whether the inventory is valued under lower cost and net realizable value rule. Lastly, the annual report is evaluated to identify the actual cost of sales conducted by the group of companies during the fiscal year. Depicting the value placed in consolidated groups inventories at the end of the current year: From the overall evaluation of the above image adequate inventory levels maintained by JB Hi-Fi Limited during the fiscal year of 2017 are adequately depicted. The consolidated inventory levels are mainly at $859.9 million, which is relatively higher than previous fiscal year (Jbhifi.com.au 2018). The central inventory valuation is mainly identified from the notes to financial account, adequate adjustments conducted towards inventories are depicted. Moreover, the consolidated inventories hold total group inventory value which is incurred by the organization during the fiscal year. Inventories of the organization mainly increased from $546.4 million in 2016 to $859.9 million in 2017. In this context, Bodie, Kane and Marcus (2014) stated that investors with the help of inventory valuation can be identify whether demand for the stocks are adequately supported by customer. On the other hand, Chouhan, Soral and Chandra (2017) argued that increment in inventory value directly indicates no sales conducted by the organization during the fiscal year. This could eventually mean that the continuous purchase of inventories is blocking companys cash reserves. Determining the accounting policies used by JB Hi-Fi Limited for the valuation of inventories: The company adequately utilizes AASB accounting policy for identifying the relevant valuation of inventories. Inventory are mainly stated at lower of cost and realizable value, which could directly affect the actual valuation of the inventory recorded in annual report. In addition, the overall cost is mainly assigned with the help of weighted average cost (Jbhifi.com.au 2018). This relevant valuation mainly allows the organization to detect the actual value of the inventory after deducting all the relevant cost incurred and its operations. this valuation and recognition method directly have sent affecting the actual value of the inventory maintained by JB Hi-Fi Limited. Haribhai-Pitamber and Dhurup (2014) mentioned that with the help of inventory valuation organizations can produce actual face value of their inventory to the investor, which could depict their actual financial position. On the other hand, Feng et al. (2014) argued that some of the companies use an article measures in valuing their inventory, which allows them to inflate their financial condition during the fiscal year. This valuation of the inventory is mainly based on the assumption made by the management, which is conducted every year to identify actual value of their inventors. The key assumptions mainly help in identifying the overall values of the inventory which is at selling price list all estimated cost. The valuation mainly helps the management of JB Hi-Fi to identify the actual value of their inventory, which is adequately depicted in the annual report (Jbhifi.com.au 2018). Depicting whether the any inventories were valued using the lower cost and net realisable value rule: All the inventory is present in JB Hi-Fi valued using low cost and net realizable value rule, which helps in depicting the actual value of their inventory (Jbhifi.com.au 2018). This valuation mainly helps in identifying the actual inventory value currently present within the organization and depict their actual current assets. Nisha (2015) mentioned that with the adequate inventory valuation method organizations can identify the actual current assets held during the fiscal year. This relevant detection of inventory mainly allowed JB Hi-Fi Limited depict their actual inventory level in the annual report. On the contrary, SHI et al. (2015) argued that companies using different inventory valuation method can put adequate valuation of their inventory in the annual report, which directly inflates the financial position. Depicting how much is reported as the cost of sales of the group of companies: The above figure millions in identifying the profit and loss statement of JB Hi-Fi Limited during the financial year of 2017. Within the profit and loss statement relevant cost of sales conducted by the organization during the fiscal year is adequately detected. This relevant cost of sales has mainly increased during the fiscal year, due to high sales conducted by the organization. The relevant cost of sales has a relatively increased in 2017 from $3,069.1 million in 2016 to $4,397.5 million in 2017 (Jbhifi.com.au 2018). This incremental cost of sales is due to the revenue generated by the company during the fiscal year. Wild (2017) stated that investors use cost of sales to identify the actual gross profit of the organization, which is derived from actual sales conducted during the fiscal year. However, some of the companies have high administrative expenses, which reduces the actual net profit in curd during the fiscal year. Conclusion: The assessment is mainly conducted to identify the inventory valuation system that is currently used by JB hi fi Limited. The organization directly uses low cost and net realizable value to identify their actual inventory value during the fiscal year. In addition, the assessment also conducts relevant valuation of inventory levels that is used by organization during the fiscal year. Adequate cost of sales for the group company also detected, which is relatively higher than previous fiscal year due to high accumulation of inventory. Accounting policies laid down by AASB is directly used by JB Hi-Fi to evaluate their inventory in their annual report. References Bodie, Z., Kane, A. and Marcus, A.J., 2014.Investments, 10e. McGraw-Hill Education. Cassell, C.A., Myers, L.A. and Seidel, T.A., 2015. Disclosure transparency about activity in valuation allowance and reserve accounts and accruals-based earnings management.Accounting, Organizations and Society,46, pp.23-38. Chouhan, V., Soral, G. and Chandra, B., 2017. Activity based costing model for inventory valuation.Management Science Letters,7(3), pp.135-144. Feng, M., Li, C., McVay, S.E. and Skaife, H., 2014. Does ineffective internal control over financial reporting affect a firm's operations? Evidence from firms' inventory management.The Accounting Review,90(2), pp.529-557. Haribhai-Pitamber, H.U. and Dhurup, M., 2014. Inventory control and valuation systems among retail SMEs in a developing country: An exploratory study.Mediterranean Journal of Social Sciences,5(8), p.81. Jbhifi.com.au. (2018). [online] Available at: https://www.jbhifi.com.au/Documents/2017%20Annual%20Report.pdf [Accessed 24 Jan. 2018]. Malaescu, I. and Sutton, S.G., 2014. The reliance of external auditors on internal audit's use of continuous audit.Journal of Information Systems,29(1), pp.95-114. Nisha, N., 2015. Inventory valuation practices: A developing country perspective.International Journal of Information Research and Review,2(7), pp.867-874.