Question

Refer to the consolidated financial statements and notes in the 2017 financial report of Wesfarmers on its website, http://www.wesfarmers.com.au/docs/default-source/reports/j000901-ar17_interactive_final.pdf?sfvrsn=4 and answer the following questions:

Have the current liabilities of Wesfarmers increased or decreased over the year? By how much? What classes of liabilities are recorded under the classification “Current Liabilities”?

What are the major liabilities of Wesfarmers at the end of the financial year?

What items are included under the heading ‘Provisions’ in the ‘Current Liabilities’ section of the statement of financial position (balance sheet)? Explain the nature of these items. Do these satisfy the definition of provisions as contained in IAS37/AASB137? By how much have liabilities for employee benefits increased over the year?

How much cash has been raised by interest-bearing loans in the most recent financial year? How much of such loans has been repaid? How do these amounts compare with the previous year?

Determine whether any of the non-current liabilities are secured.

Are there any non-current provisions? If so, what, in very general terms, do these represent?

Answer 1

As per policy, only four parts of a question are allowed to answer, so answering first four parts :

Answer 1) The current liabilities of the Wesfarmers has dropped down to $10417m in 2017 in comparison 2016 figure of $10424m. The drop was of $7m .

2) The current liabilities constitutes of the trade payables, short period loans and borrowings payable, income tax payables, the provisions of the year and derivatives displaying hedging position.

3) The major liabilities of Wesfarmers at the end of the financial year 2017 are Trade payables (ie. The current liabilities) of $6615m.

4) The items which are included under the heading ‘Provisions’ in the ‘Current Liabilities’ section of the Balance sheet are:a)Employee benefits, b) wages and salaries payable, c) Leave provisions, d) Lease provisions, e) Off-market contracts, f) Self-Insured risks provisions, g) Mine and plant rehabilitation provisions, and h) Restructuring and make good provisions