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Coles Group Australia

Choose a suitable company with sufficient disclosures on inventory.

Write a business report to address the following two questions.

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By reference to the annual report of Coles Group Australia, you are required to address the following two aspects in the business report:

  1. Review the inventory disclosure of Coles Group.
    Review should include the following:
    -inventory system (perpetual or periodic);
    -cost assumption (FIFO, LIFO or average cost);
    -the impact of cost assumption to the statement of profit and loss and
    -evaluation of inventory, etc.
  2. You are required to conduct research (i. e. reviewing relevant accounting standards and policies as well as academic and professional journals), and discuss regulatory
    requirements and various factors that accountants should consider when setting up accounting policy relating to inventory for the entities they work for?

Sample Solution

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