Harvey Norman Holdings Limited
Group case study

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Tutor: Dr. Mahesh Joshi

Group members: JIN CHEN 3350416 MINGFENG CHI 3316768 JINGHAN REN 3365087

TABLE OF CONTENTS

Executive summary 3
Introduction 4
Source of Finance and financial segments 4
Industry and competitor analysis 5
Key highlights of financial and operational performance 5
Highlights and change of financial performance 5
Highlight of operational performance 5
Change in accounting policies 6
Assets – PPE and Intangibles 6 leased assets and liabilities 9
Auditor and auditor report 11
Reference 13
The company has fully confidence in this action and believes it will make a good difference in the financial report of 2012

Change in accounting policies

According to Australian Accounting Standards, a few accounting policies have been put out recently but have not yet shown its effect on the report of 2011 will result an impact on 2012.

Assets – PPE and Intangibles

PPE

1. The carrying amount of each class of PPE, at reporting date, of Harvey Norman
a. PPE
In accounting system, property, plant and equipment are belong to tangible asset and recorded as non-current asset if they are kept for more than one year or beyond the normal cycle of the entity. According to AASB116, if the cost of an item can be measured reliably and the future benefit will flow to the entity, then the items of property, plant and equipment can be recognized as PPE.
b. Each class of PPE
It can be seen from the HN’s note 12 that the PPE of HN was classified into:
(1) Land and Buildings;
(2) Plant and Equipment;
(3) Lease make good asset.
And the carrying amount of each class of PPE is showed in the below table:

|Category |Land and buildings | Plant and Equipment ($’000) |Lease make good asset |Total |
| |($’000) | |($’000) |($’000) |