Objective: The objective of this report is to analyse the Australian Conceptual Framework in accounting standard setting and apply the related key concepts to contemporary business practices. Your discussion should be aligned with the Conceptual Framework for Financial Reporting and relevant AASBs to support your analysis.

JB Hi - Fi Ltd has assets with the following costs and fair values as at 30 June 2019:

Asset type	cost	Fair vale
Inventory	$886,700,000	$912,000,000
Machinery	$40,800,000	$46,000,000
Total	$927,500,000	$958,000,000

The company decided.to measure the assets at cost and therefore disclosure the assets in the statement of financial position (balance sheet) at an amount of $927.5 million despite the fact that it could receive $958 million at the time if it sold them.

You are required to answer the following questions:

1) Would such financial statements be true and fair if the assets were disclosed at a total of $927.5 million?

2) Would such financial statements be true and fair if the assets were disclosed at a total of $958 million?

Assume if the assets were recorded as following as at 30 June 2019:

Asset type	cost	Fair vale
Inventory	$886,700,000	$830,000,000
Machinery	$40,800,000	$36,000,000
Total	$927,500,000	$866,000,000

3) Would such financial statements be true and fair if the assets were disclosed at a total of $866 million because inventory and machinery actually could be sold at those values?

During COVID 19, the value of the companys assets declined due to the Global Lock-down. Many businesses were forced to close shops or downsize their business operation. Refer to https://www.applianceretailer.com.au/2020/04/jb-hi-fi-employees-call-for-stores-to-closeduring-coronavirus/.

In this report, you are also required to select a 2018/2019 annual report of an Australian company listed in the ASX (Australian Stock Exchange). My one is SEEK Limited; ASX: SEK

You should provide your comments on the following questions:

1) Identify the measurement methods of Property, Plant and Equipment (PPE) that are adopted by the chosen company. Provide your explanation.

2) In your opinion, provide recommendations to the CFO regarding the measurement methods of PPE adopted by the chosen company that can improve financial performance in the 2019/2020 annual report under the current business environment. (6 marks) The report should demonstrate effective communication, logical presentation and integrated evaluation.

In particular, you may refer to the following or other AASBs in your report. AASB Conceptual Framework for Financial Reporting AASB 102 Inventories 5 AASB 116 Property, Plant and Equipment AASB 136 Impairment of Assets AASB 101 Presentation of Financial Statements

Special instructions of the report:

The report should include an executive summary, a body of contents covering points listed above, and a reference list.

* References used in the report such as the annual report of your chosen company or AASBs should be included in the reference list. Remember to provide a link to the annual report in the reference list.

Find its annual reports for 2017/2018 or 2018/2019 financial year. Remember to use a complete annual report, not a concise financial report or a half-year financial report.