BHP Billiton is the Australian company that is engaged in the activities of development, exploration, processing and production of oil, minerals and gas apart from pre-development for potash. The operating segments of the company are potash and petroleum, iron ore, copper and coal. The company was established in the year 1885 and it has it’s headquarter in Melbourne, Australia. During the year 2001 Billiton company based in Britain and BHP company merged together to form the BHP billiton Group. Iron ore segment of the company mines the iron ore, copper segment of the company mines the the lead, silver, copper, uranium, gold, zinc and molybdenum whereas the coal segment of the company mines the thermal coal and metallurgical coal. The main objective of the company is to create long-term sustainable value for the employees, shareholders, suppliers, contractors, business partners and suppliers. Further the company, zero harm to the environment, host communities and people and the compliance with the industry practice. At present the company has 9 members in its board, out of which 8 directors are independent and 1 director is non-independent. Further, out of total 9 directors, 7 are non-executive directors. The company received the Skills Development Summit Achiever Award 2013 as the Best Public Sector Training Institution continuously for 3 years that is for the years 2011, 2012 and 2013. The company achieved the dominant position by combining good judgement and luck (BHP 2018).
On the other hand Woolworths Supermarket is owned by Woolworths Limited. The company was established in September, 1924 and at present it holds 80% of Australian super market. Headquarter of the company is in New South Wales of Australia. The main products of the company are groceries that include fruits, vegetables, packaged foods and meat. The company is also engaged in selling of DVDs, Magazines, household products, beauty and health products, stationary items and baby products. At present the company has more than 1000 stores all over Australia apart from 968 supermarket and 19 convenience stores that carries same logo. The company operates under 5 private or generic brand labels. Those are – Woolworths Select, Woolworths Homebrand, Woolworths Fresh, Macro Wholefoods Market and Woolworths Gold. The homebrand deals with products related to daily household requirements and the groceries, Woolworth select deals with wide range of products that include shampoo, food, potato chips and dog foods. The gold sector deals with the gold product, the Woolworths Fresh deals with yummy meals and fresh soups and the Macro Wholefoods deals with wide range of products for the families and various other products like vegetarian foods, organic foods and gluten free foods. At present the company has 8 members in its board, out of which 7 directors are independent. Further, of all the 8 directors 6 are non-executive director. The company is proud to get itself associated with the award that recognizes the young people’s achievements. Further, the company was named as the 3rd best social media platform (Woolworthsgroup.com.au 2018).
As per AASB 15, BHP Billiton measures its revenue at fair values for the consideration received or the revenue that is receivable based on meeting of the recognition criteria as follows –
As per AASB 15, Woolworths measures its revenue at fair values for the consideration received or the revenue that is receivable based on meeting of the recognition criteria as follows –
The assets are recognized by both the companies on the basis of the compliance requirement stated under the corporate framework of the GPFR (general purpose financial reporting). Further, the companies recognize their asset if it is apparent that the future economic benefit from the asset will be the inflow to the company and the amount of the benefit can be measured reliably (Morioka and De Carvalho 2016). From the financial statement of BHP Billiton it has been identified that the company recognizes its asset in the following ways –
On the other hand the assets are recognized in the balance sheet by Woolworths in the following ways –
In accordance with the requirement of GPFR (general purpose financial reporting) liability shall be recognized under the balance sheet it it is likely that outflow of resources will be taken place for the settlement of present obligation resulted from the past events and the amount for which can be reliably measured. BHP Billiton recognizes their liabilities as follows –
On the other hand the liabilities are recognized in the balance sheet by Woolworths in the following ways –
Conclusion
It can be concluded from the above discussion and analysis that both BHP Billiton as well as Woolworths recognises the assets, liabilities and revenues as per the requirement of GPFR (General Purpose Financial Reporting). However, as the company’s operational activities are different as Woolworths is engaged in retail business and BHP Billiton is engaged in mining business the items recognised as assets, liabilities and revenues of the companies differ from each other. The companies however, recognise all the items in compliance with GPFR.
Reference
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