Accounting – Inventory Reporting

You are required to choose a suitable company with sufficient disclosures on inventory.

Company of choice: Coles Group Australia

Write a business report to address the following two questions.

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?

15 marks for Q1
– Chosen company is suitable
– Includes relevant details
– Analysis is accurate and insightful (use of detail)
15 marks for Q2
– Writing is clear
– Explanations are complete, detailed, with no omissions
10 marks for organization + clarity of language
– Information is well organized in a clear structure
– Paragraphs organized around key themes that explicitly support the overall position
– Well supported and argued conclusion
– The report must contain the following structure (in this order): Introduction, Body, Conclusion, Reference List
– As well as the reference list you must include in text citations for each point made to support claims.
– You must include relevant parts of the annual reports that you have used in this report
10 marks on grammar + appropriate format

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