Audit Assess Combined for Q1

Audit Assess Combined for Q1 - Nature of revenue MYER main...

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MYER main source of revenue is from its conduct in retail trade, the revenue source/revenue recognition can be divided into several categories: Revenue Source/Recognized Description Revenue from sale of goods (excluding lay-by transactions) Recognised at the point of sale after deducting for duties and taxes paid Revenue from lay-by transactions Recognised as revenue from sale of goods when customer takes possession of the merchandise and satisfies all payment obligations (Allowance for expected sales return is based on past experiences of returns and future expectations) Other operating income Concession income recognised at the point of sale after deducting for duties and taxes paid, interest income is recognised on a time proportion basis using the effective interest method. Dividends are recognised as revenue when the right to receive payment is established. The Myer One loyalty programme Complies with AASB Interpretation 13 Customer Loyalty Programmes. Revenue from the award points is recognised at its fair value when the points are redeemed. It is based on the number of points redeemed relative to the total number expected to be redeemed. Award points expire 24 months. Conduct of Operations Myer is Australia’s largest department store retailer with a national network of 65 stores in prime locations across Australia refer to Figure 1. The stores generally occupy the prime tenancies in 25 of the top 30 shopping centres Myer’s geographical distribution of the stores is consistent to Australia’s population distribution where New South Wales is their largest market with 23 stores, followed by Victoria (15 stores) and QLD (11 Stores) evident in Figure 2. Over the last 3 years, more than $400 million have been invested in world class supply chain (supported by four leased distribution centres located in Qld, NSW, Vic and WA). Myer also enhanced their critical IT and point-of-sale (POS) system (to centralise pricing) as well as implementing a new CCTV network to reduce the loss from shrinkage. In
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This note was uploaded on 03/25/2012 for the course ACCT 3708 taught by Professor - during the Three '11 term at University of New South Wales.

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Audit Assess Combined for Q1 - Nature of revenue MYER main...

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