Wesfarmerss Company

Le huong Bao Linh Phan Quoc Bao Tran Thanh Long

Outline
Introduction Revenue recognition Property, plant & equipment Auditor responsible Regulation in financial statement Board of Directors Business sustainability Earning Per Share (EPS) Binh Thuong Companys ability

Introduction
Diversified Corporation Supermarket, home improvement, office supplies Principal Activities Retailing operation of supermarket, home improvement & outdoor living products Retailing office & technology products,

Revenue Recognition
Revenue recognised fair value received, receivable to extend Sales of good Rending of service Interest Dividends Operating lease rental venue Insurance premium revenue

Property, Plant & Equipment

Property, plant & equipment = Cost Accumulated depreciation Cost = total value of all shares Accumulated depreciation = plant & equipment , land & buildings

Buildings 20 40 years Plant & equipment 3 40 years

Auditor Responsible
Old Auditor : Mr Greg Meyerowitz ( Ernst & Young )(3/6/2009 30/6/2009) New Auditor: Darren Lewsen ( Erns & Young) (1/7/2013)

Provide truth of public

Prevent risk of bias, conflict of interest, safeguard the integrity

Regulation
Wesfarmers company comply 1. Australian Accounting Standard (including the Australian Interpretations)

1. Corporations Regulation 2001

Board Directors
Chairman: Bob Every (2006)
Role Approve future plans Guide & monitor Wesfarmers Protect & Enhance the interest shareholders

Business Sustainability

Business Sustainability
Ethical sourcing, packaging reviews supply chains. Reducing the effect of waste, water, energy to greenhouse. Support local communities and indigenous programs. Maintain a strong focus on building a sustainable workforce.

Earning Per Share

Wesfarmers' EPS from 2009 to 2013
250 200

150

100

50

cents

2009 158.5

2010 135.7

2011 166.7

2012 184.2

2013 195.9

Earning Per Share

Wesfarmers vs. Woolworths
Wesfarmers Woolworths
195.9

184.2 181.8 178.3

2012

2013

Binh Thuong Company s Ability

Profitability
2012 ROE Profit margin 20% 16.12% 2013 30% 19.54% Change 10% 3.42%

Improvement in finance Attract investors Allow Company borrow banks money

Binh Thuong Company s Ability

Liquidity
2012 Current ratio Acid test ratio 1.63 times 103.87 times 2013 1.01 times 64.43 times Change 0.62 times 39.44 times

Difficulty to meet short-term obligation Current ration > acid test ratio Has ability to pay short-term loans

Binh Thuong Company s Ability

Debt & equity to finance
2012 2013 Change

Debt cover ratio

Debt to euity ratio

1.87 times
49.43 %

1.11 times
25.7%

0.76 times
23.73%

Can pay long term loans

References:
1. Australian Securities Exchange (nd), Listing Requirements, asx.com.au, viewed 10 april 2014,

< http://www.asx.com.au/listings/listing-capital-raising/listing-requirements.htm>
2. Ceres (2010), The 21st century corporation: the Ceres roadmap for sustainability, San Francisco, p.8. 3. Hoovers (nd), Wesfarmers Limited Competition, viewed 10 April 2014,

http://www.hoovers.com/companyinformation/cs/competition.Wesfarmers_Limited.8fc46bf914ad1848.html 4. Wesfarmers Ltd (2013), Annual report 2013, Wesfarmers.com.au, viewed 10 April 2014 <https://www.wesfarmers.com.au/component/docman/doc_download/1335-2013-annual-

report.html>
5. Woolworths Ltd (2014), Annual report 2013, Woolworthslimited.com.au, viewed 10 APRIL 2014 http://www.woolworthslimited.com.au/annualreport/2012/pdf/WW_AR12_Full.pdf