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ANALYSIS OF ANNUAL REPORT
Analysis of Annual Report
Executive Summary
The overall report has significantly portrayed the consequences pertained by the retail
organization Woolworths so as to ensure the probability to enhance the business operations
effectively. It is quite feasible enough for the organization to adhere the corresponding
characteristics to as to understand the aspects inculcating the justified formulation so as to ensure
the business operation in the financial year 2016. It is quite effective enough to generate the
perception considering the application through pertaining the effectiveness of business. It is quite
feasible enough through justifying the concept accumulating all the purpose for generating the
structure for pertaining business consideration. Thus the overall report has been portrayed in
accordance with the context of effective resources of the retail companies enlisted in the
Australian Stock Exchange.
ContentsExecutive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Analysis...........................................................................................................................................4
Analysis of Company Overview:.................................................................................................4
Analysis of Performance Overview.............................................................................................5
Analysis of Objectives of the firm...............................................................................................6
Analysis of Financial Statements.................................................................................................8
Analysis of Recent Market Trends..............................................................................................9
Analysis of Core Competencies.................................................................................................11
Conclusion.....................................................................................................................................12
Recommendation...........................................................................................................................12
References......................................................................................................................................13
Appendix:......................................................................................................................................14
Introduction
In this particular report, the overall justification regarding the contemporary issues of the retail
companies of Australia prior to the significance of conceptual frame work under AASB has been
depicted. The report has covered the justification regarding the aspects of Woolworth and
Wesfarmers, who are operating successfully in the retail market of Australia. Here the overall
justification regarding the basic determination of the annual report of both the retail companies
for the financial year 2016.
Analysis
Analysis of Company Overview:
Woolworth is one of the most important retail giant prevailing their business operation in the
financial market of Australia. It can be said that the market challenges faced by the company in
parts of Australia and New Zealand has pertained effective strategies so as to tackle different
kinds of commitments adhered for structuring into a better organization in the financial year
2020. The company has also intervened some of the policies so as to builds effective relationship
and trust by encouraging diversities as well as supporting all the health care activities in the
world. Development of detailed competencies with focus upon respective plan of action has
entailed the aspects regulating important feasibility of the company. Whereas, Wesfarmers has
intended to be a strong company with justified business portfolio which will surely attain the
significance of delineating cash, which has been generated through the aspects of governance so
as to ensure efficient workforce and cultures with the shareholders for creating immense values
for the company (Jorgensen, et al., 2016). It can be said that the overall objectives of the
company is to provide justified returns to its shareholders so as to ensure the feasibilities of
strengthening the financial aspects of the company. In context to the conceptual framework the
AASB principles have been justified with the significance in delineating the strategies that have
been implemented by the organizations, In accordance with the context regarding the framework,
it can be said that the perspectives regarding the adjustment has formulated the feasibility
regarding the adjustments regarding the entailed fact of considering the valuation. It has been
observed that the purpose of attaining this particular structure, overall significance has been
enabled the fact of understanding the strategies of the company that have been pertained in the
financial year 2016.
Prudence concept of corporate Reporting
Prudence concept in accounting and financial reporting has significantly addressed the track
record with help of key standards in order to synthesize the importance regarding the conceptual
framework. As reasonability is obviously reflected in the guidelines it appears to be correct that
its part is talked about in the structure that is utilized to set those principles. The most recent
exchange paper on the structure from IASB does not, notwithstanding, propose its consideration.
In addition, that exchange paper is proposing the expulsion of the likelihood of inflow surge of
financial advantages from the meaning of benefits and liabilities and that certain
acknowledgment tests ought not to be given. For resources, specifically, this opens up the degree
for including a greater number of things as resources than under current IFRS. Rather, the
importance of the data gave will be considered and vulnerability is probably going to be
considered in measuring things as opposed to in choosing whether they will be perceived in any
case. From the aspects of the company Woolworths the concurrence regarding instability should
be reflected in estimation. In reasonable qualities in light of models and values in view of future
money streams counting weaknesses of advantages at cost the instabilities must be completely
perceived, for example in the hazard or liquidity segments of rebate rates. The conclusion from
the occurrences in the current IFRS would be that the structure needs a component of
judiciousness in the acknowledgment of advantages and liabilities instead of just to reflect
instability in estimation. Judiciousness in acknowledgment of advantages and liabilities ought to
be more straightforward than conceivably evaluated reasonability in estimation. The
bookkeeping measures clarify which things ought to be perceived and when, and the
bookkeeping strategies ought to expand on how those benchmarks have been connected by the
organization. As the significance considering the financial statements it has been set out
numerous things should be measured at cost and this naturally gets a component of judiciousness
in the qualities perceived and the planning of benefit acknowledgment, as noted previously. Past
that, judiciousness in reasonable esteem or income based estimation is not useful. This is the
place it turns out to be difficult to deny the contentions that judiciousness prompts unfit
predisposition in records. Reflecting vulnerability in estimation, then again, is an endeavour to
reflect genuinely what advertises players apply by and by and what financial matters would
manage. Some present occurrences of reflecting judiciousness in the introduction of money
related articulations depend on the acknowledgment of a few picks up in Wesfarmers Ltd instead
of in benefit. There is a recognized absence of lucidity in the standards of what constitutes
benefit and what constitutes actual standards of which judiciousness is only a section; this still
stays to be settled in the structure.
Analysis of Performance Overview
The aspects of the retail giants has significantly measure the features encircling upon the
performance achieved on behalf of the demand raised from the market. It can be said that the
overall justification has entailed the circumstances that can favourably derived the perspectives
regulating from the different feasibilities of the business. It is quite necessary for the company to
cumulate the competitive pressures that are generally increasing. It can be said from the point of
view of Woolworths that the justification alleviating the overall pressures has ensured the
circumstances regarding the actual circumstances that have been derived from the factors
generating all the perception of cumulating the business operations. It can be said that the natural
resources of the company are managed through propagating the efficient considerations of
upholding the aspects. It can be easily said that the mitigation of the climate changes has
efficiently handled the overall operations so as to ensure the factors that will surely enhance the
performance of the company (Dobrev & Hart, 2015). The company Woolworth has significantly
achieved the criteria through ensuring the aspects regarding the feasibilities of the jobs regulating
the indirect contribution in the economy of Australia. It has been valued that the company has
determined 805,000 jobs to the individuals and has recovered a value of $119 billion in the
financial year 2016. From the operations it can be said that the company has paid 7.7 billion
dollar of wages in order to inculcate the determination regarding all the feasibility of continuing
the business operations. Moreover, the company has also inculcated different perception of
paying dividend for pertaining the 1.0 billion dollar to the shareholders. Apart from this the
direct community investment of the company has been valued at 31 million $ by adhering 1300
products so as to ensure the perspectives in order to which the different specification regarding
the revenues that has been acquired in the respective financial year. On the contrary, the overall
annual report of the company Wesfarmers has significantly entailed that the shareholder’s equity
of the company has been valued at 22949 billion dollar which has also encircle the feasibilities
for adhering the perspectives so as to ensure better feasibilities of the firm. Moreover, the
company has paid 186 billion of dividends so as to acquire the resemblance regarding the overall
perception controlling the business operations effectively. On the other hand, it can be said that
the justified significance regarding the fact of value distribution, it can be said that the
determination has cumulated the factors of acquiring extra profitability.
Analysis of Objectives of the firm
The overall justification regarding the aspects continuing the variation has entailed the factors
that the overall justified policies applied by the companies will gather better feasibility in the
long run. Considering the objectives of the company Woolworths, it can be said that the
company has entailed very broad commitment so as to ensure the factors in order to understand
the feasibilities inculcating the health and the food partnership among the respective end users. It
is quite obvious that the firm has intervened a joint propagation so as to ensure the perspectives
of aiming the improvement regarding the habits of Australian dietary purpose. It is quite
important for the determination regarding the aspects of reducing level of sodium provided in the
foods. Moreover, the company has also measured the eliminated additives so as to control the
perspectives in order to determine the actual perception of controlling the business operations.
Focusing in removing the additives has entailed that the company is cumulatively attained upon
the factors that can generate much more importance to the branded products that are generally
made by the company
itself. It can be easily
said that the
reformulation of the
cleaner products has
entailed the perception
of quantifying the
different aspects
through which different
aspects has been
significantly pertained.
(Crane & Matten, 2016)
Apart from this
maintenance of effective corporate strategies inside the organization has been justified so as to
ensure effective business facilities and increased revenue in the long run. It is quite evident that
the company has measured its operation through improving the aspects regulated through the
prosperity of maintaining effective quality care among the suppliers. The company has focussed
on the objectives of considering supplier relationships that can adhere excess values so as to
ensure the feasibilities of
entailing the business operation
of the firm. Moreover, the
justification concerning the
effectiveness of the firm has
intended the specific
measurement through acquiring
all the performance. In
accordance to the framework, it
has been perceived that the
standpoint of consolidating
overall aspects has generated the purpose of identifying the application through understanding
the specification consolidating the actual feasibility of the firm. It can be said that the company
Wesfarmers has intended the criteria to adhere the overall performance that has been replicated
with the valuation and techniques regarding the returns provided top the shareholders. On the
other hand the replication of adjusting the scenario has reflected that the company has
determined its effects so as to pertain business valuation in the long run. Moreover, the company
has also intended to maintain the cash flow generation regarding the overall business
maintenance. It has been observed that the long-term growth of the firm has been perceived
considering the factors that can easily manage the working capital successfully. The aspects of
strong capital expenditures have entailed the process that has upgraded the strong consequences
regarding the overall factors. The long term focus has been continued the upliftment so as to
ensure the investment proportions of the firm. It can be easily said that the consideration
regarding the financial discipline has been significantly entailed. In order to strengthen these
feasibilities it can be said that the overall justification will be provided with the suitability
regarding the achievement of procuring financial health. The strengthened aspects acquired from
the balance sheet have generated diversities in procuring the funding resources. It has been
optimized so as to generate cost acquired for controlling all the perspectives. Maintenance of
strong credit metrics has also intended that the overall cash flow will be sufficed. The overall
features of risk management maturities have developed the significance in inculcating the overall
progressions effectively (Eriksson & Kovalainen, 2015).
Analysis of Financial Statements
The analysis of the financial statements has been entailed with the fact for determining the
overall assessment formulated in a particular financial year. Here the analysis has been pertained
with the help of different values acquired from the annual report of the company Woolworth and
Wesfarmers Plc. From the overall analysis of the financial statement provided in the annual
report, some of the important interventions has been endeavoured so as to ascertain the financial
performance of these two retail companies enlisted in the Australian Stock Exchange.
2016 20150
500
1000
1500
2000
2500
PROFIT FOR THE YEAR
WOOLSWORTH WESFARMERS
PROFIT FOR THE YEAR
2016 2015
WOOLSWORTH 840.1 2300.8
WESFARMERS 407 2440
From the justification of profitability of both the companies, has secured effective profitability in
the financial year 2015. The company Wesfarmers has secured higher profitability by pertaining
retail market operations in the industry. In the financial year 2016, the company Woolworths has
secured higher profitability than Wesfarmers but due to the interventions regarding the economic
disruption, both the company has secured a lower profit but comparatively Woolworths has
secured higher margin from its operations.
Current Assets
2016 2015
WOOLSWORTH 7427 7660.9
WESFARMERS 9684 9093
2016 20150
100020003000400050006000700080009000
10000
CURRENT ASSET VALUATION
WOOLSWORTHWESFARMERS
The current asset valuation of the company determines the liquidity in each of the financial year.
The company Wesfarmers has secured an inevitable progress in securing the liquidity value of
the cash position in both the financial year. It can be said that the company has significantly
managed the operation to secure effectiveness in encircling the liquidity operations so as to
pursue strong impetus in generating assets of the company. The company Woolworth has to
maintain the price of the products so as to acquire more customers and increase the revenues
through liquidity in the long run.
Analysis of Recent Market TrendsIn this section of the report, the overall justification regarding the market trends of the company
Wesfarmers and Woolworth has significantly addressed in comparison to the industry standard
of Australian Stock Exchange.
As per the graph, it can be easily said that the performance of the company Wesfarmers has
deteriorated from the instances in the financial year 2009. Considering the market stability, the
firm has increased in capitalization in the financial year 2010. Thus from the advancement, it can
be said that the company has greatly achieved stability judging the actual perception of the
business feasibility pertained by the Australian Stock Exchange in the upcoming financial year.
Thus by replicating the business feasibility, the company has enhanced the operation and has
followed important financial consideration for grabbing higher revenues than that of the standard
possessed in accordance with the Australian Stock Exchange. On the other Hand the company
Woolworth has significantly managed the feasibility to determine the possession in order to
control the operation in each of the financial year. It has maintained the industry and economic
standard pertained as per the Australian Stock Exchange and on the contrary it can be said that
the company is operating with a successful financial feasibility in attaining justified purpose of
enhancing the revenues.
Analysis of Core Competencies
The proceeded with development and achievement of Woolworth relies on upon the capacity of
the Organization to comprehend and react to the difficulties of a dubious and evolving world. As
an extensive, scattered and complex association, this vulnerability produces hazard, with the
possibility to be a wellspring of both open doors and dangers. By comprehension and overseeing
hazard, the Organization gives more noteworthy sureness and certainty to every one of its
partners. The hazard administration strategy is in an indistinguishable area from the
administration structure, alluded to beforehand. Woolworth utilizes the all inclusive perceived
announcing structure created by the global economic market. The GRI is announcing structure
sets out the standards and pointers those associations can use to gauge and report their monetary,
natural, and social execution. This report was set up as per the centre standards of the GRI Rules.
The continuation to the report for CDP which is considered as a financial specialist driven
divulgence activity empowering organizations to write about hazard recognizable proof and
moderation forms identified with environmental change. A worldwide list that tracks the money
related execution of driving supportability driven organizations has been affirmed. We keep on
benchmark emphatically against the associates in the sustenance and staples retailing industry.
Every one of the representatives focus on the Set of principles to keep up the most astounding
legitimate, moral and moral gauges in the dealings with clients, providers, workers and nearby
groups. This code diagrams how representatives can meet the most noteworthy norms through
their ordinary practices and decisions. It has been focused on nonstop change,
straightforwardness and responsibility. We don't endure working environment offense under any
conditions and we require the exchange accomplices to work with us to stamp out any and each
example. It has clear, long-standing and acknowledged strategies for exchange accomplices to
report any issues. In any case we perceive there is dependably chance to reinforce the
frameworks. The Speak Up administration is accessible for exchange accomplices to utilize
when typical acceleration techniques have been depleted or are improper (Maas & Reniers,
2014).
Conclusion
Thus it can be concluded that the overall justification has been considered in order to delineate
the effectiveness of the considered approach so as to deliver the significance regarding all the
assertive work flow. Woolworth and its competitors are ready for authoritative and
administrative changes through direct engagement with political gatherings in Australia in
addition to New Zealand. The approach is that any political commitments require Board
endorsement. Woolworth holds fast to all significant political exposure laws and controls and
endeavours to make commitments in a bipartisan way. This year, no political commitments were
made in Australia. In New Zealand, as they didn't make political gifts or go to any political
capacities.
Recommendation
The company focused on meeting the Australian Protection Standards for the reasonable
treatment of Individual Data, which sets measures for the gathering, utilize and exposure, get to,
capacity and decimation of individual data that we gather as a major aspect of the business
operations. The regard for the clients' entitlement to protection of their own data is central. The
companies have strategies and methodology to guarantee that all individual data, regardless of
how or where it's acquired, is taken care of delicately, safely, and as per the Australian Security
Standards.
Appendix:Woolworth Annual Report:
Wesfarmers Annual Report:
