Annual Report: Billabong International Limited - Australia (Research Paper Sample)

ANNUAL REPORT - BILLABONG
Annual Report - Billabong
[Writer’s Name]
[Institution’s Name]

Annual Report – Billabong
1. The name of the Company and its registered office.
The name of the company is Billabong International Limited incorporated in Australia. The registered office of the company is situated in Australia.
2. Research your company and include information about your company. Include the type of business undertaken (fully reference this in your bibliography).
The company is engaged in the business of wholesaling and retailing of skate, snow , surf and sports apparel, accessories and hardware currently. The brands of the company include Billabong, RVCA, Element, Kustom, Honolua, Palmers, Xcel, Sector 9 , Tigerlily and Von Zipper. Currently the company is operating 424 retail stores in different regions / countries globally including North America, Europe , Australia , New Zealand , Japan and South Africa etc. Moreover an online retail store is also a part of the company available by webname and ("Billabong Biz : Behind the Brand - Investors - Current," n.d.)
3. The name of the Auditor. Give both the partner’s name and the name of the firm. (Don’t forget to reference the page of the auditor’s report).
Price waterhouse coopers (pwc) are the auditors of Billabong International Limited. The engagement partner for the company’s audit isSteven Bosiljevac (Pg. 167- 168).
4. Using the consolidated report provide the following:
5.3 The amount of cost of sales for the year
The amount of cost of sales is $555,758,000 for the year 2014 and $541,466,000 for the year 2013.
5.4 The amount of Profit or loss before tax for the year, and how does this compare with the previous year?
The company earned a loss of $135,236,000 for the year 2014. Also for the year 2013, the company earned a loss of 653,871,000.
5.5 The amount of income tax expense (if any).
The income tax expenses of Billabong for the year 2014 are $74,576,000. However the income tax expenses for the year 2013 were $29,861,000.
5.6 The amounts of Net Accounts Receivable (Net Trades Receivable) for the year (put in detail of each item).
The Trade and other Receivable of Billabong for the year are $153,850,000.
5.7 The method for bad debts used by the company.
A portion of the previous year’s specific doubtful debts expense was reversed by assuming that either cash was collected or it was concluded that a portion would be recoverable at a future date.
5.8 The amounts of historical cost of each type of the Property, Plant and Equipment for the year; the amount of depreciation for each type of the Property, Plant and Equipment; and the depreciation method used for each type of Property, Plant and Equipment.
The required amount along with their description are as under
DescriptionHistorical cost ($’000)Depreciation for the year ($’000)Method of Depreciaton ($’000)Land and
buildings52,128792Land = N/A
Building = Straight- Line Method of DepreciationFurniture,
fittings and
equipment278,75525,076Straight- Line Method of DepreciationLeased plant
and equipment16,4571,612Straight- Line Method of Depreciation
5.9 The amounts and the basis of valuation (e.g. historical cost, net market value etc.) and amounts of Closing Inventories (Material, W.I.P. and F.G.).
Raw materials, work in progress (W.I.P) and finished goods (F.G) are stated at the lower of cost and net realisable value (NRV).
Regarding Raw Materials, Cost is decided using the first-in, first-out (FIFO) method and standard costs approximating actual costs. However for Work in progress and finished goods, cost is standard costs approximating actual costs comprising of direct materials, direct labour and allocations of variable and fixed overhead expenditure. Fixed Overhaeads are allocated on the basis of normal operating capacity.
Costs of purchased inventory are determined after deducting discounts and rebates.
Net realisable value (NRV) is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Also the cost includes the transfer from equity of any gains/losses on qualifying cash flow hedges relating to purchases.
The closing inventories of Raw materials, work in progress (W.I.P) and finished goods (F.G) are as under:
Raw materials and stores – at cost $2,179,000
Work in progress – at cost $6,589,000
Finished goods:
– at cost $158,078,000
– at net realisable value $13,376,000
5.10 The amounts of each type of long-term liabilities.
The amount of Long Term Liabilities along with their description for 2014 are as under:
Borrowings $212,033,000
Deferred tax liabilities --- --- ---
Provisions and payables $31,570,000
Deferred payments $23,556,000
5.11 The amou...