Discuss Fundamentals Of Accounting For Current Liabilities Of Wesfarmers


Part A
1. Have the current liabilities of Wesfarmers increased or decreased over the year? By how much? What classes of liabilities are recorded under the classification Current Liabilities?
2. What are the major liabilities of Wesfarmersat the end of the financial year?
3. What items are included under the heading Provisions in the Current Liabilities section of the statement of financial position (balance sheet)? Explain the nature of these items. Do these satisfy the definition of provisions as contained in IAS37/AASB137? By how much have liabilitiesfor employee benefits increased over the year?
4. How much cash has been raised by interest-bearing loans in the most recent financial year? How much of such loans has been repaid? How do these amounts compare with the previous year?
5. Determine whether any of the non-current liabilities are secured.
6. Are there any non-current provisions? If so, what, in very general terms, do these represent?

Part B

1. The Woolworth income statement shows a deduction (in brackets) for income tax expense. Would this expense item be seen in the income statement of a partnership? Explain your answer.
2. In the statement of changes in equity regarding retained earnings, how is the total profit avail¬able appropriated? How does the allocation of the total profit available for appropriation in a partnership differ from that shown for WoolworthLimited? Explain the reasons for any differences.
3. Refer to the balance sheet (statement of financial position) of Woolworthand the note titled issued capital. How do these differ from that of a typical partnership? Explain.
4. Woolworthis required to produce a statement of cash flows (cash flow statement) and include this in its annual financial statements. Would the typical partnership be required to prepare such a statement? Why or why not? Would a typical partnership prepare such a state¬ment? Explain.


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