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7/29/2019 Draft Power Point Presentation- SMA Desktop

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Hallenstein Glasson Holdings Limited(Company or Parent)

& Subsidiaries (the Group)is a retailer of mens and womens clothing

in New Zealand and Australia.

Limited liability company incorporatedand domiciled in New Zealand

The present company is the product ofthe merger between Hallensteins and

Glassons retail chains in 1985.


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First Listed : 01 Oct 1947

Solicitor : Young Hunter

Auditor : PricewaterhouseCoopers

Auckland Sector: Services / Consumer

Annual Balance date :August

Preliminary profit announcement : September

Report and account Pub : October


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The financial statements are the

Consolidated Financial Statements of theGroup comprising Hallenstein GlassonHoldings Limited and subsidiaries.

The principal trading subsidiaries areGlassons Limited, Glassons AustraliaLimited (involved in the retail of womens

apparel), Retail 161 Limited (Storm brand),and Hallenstein Bros Limited (retail ofmens and boys apparel).

The subsidiaries are 100% owned byHallenstein Glasson Holdings Limited.


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The Parent and its subsidiaries are designated

as profit oriented entities for financialreporting purposes.

The financial statements of the Parent are forthe Company as a separate legal entity.

The four subsidiaries satisfy the definitionof reporting entities, as per the definitionprovided by the conceptual framework

Hallenstein Properties is considered a subsidiary, butnot as a reporting entity, since they do not have anyeconomic transactions and hold only the propertyunder every retail venture.


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Financial statements for the yearended 1 August 2012 have beenprepared in accordance with the NewZealand Generally Accepted Accounting

Practice (NZ GAAP).

The financial statements comply withInternational Financial ReportingStandards (IFRS).

They satisfy the qualitativecharacteristics of comparability,verifiability, timeliness and

understandability


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Current assets Measurement basis from

the Report

Criteria

Cash and cashequivalents

Cash at bank, cash on handand short term deposits

1. Future economic

benefits will flow to

the entity

2. Cost or value can be

measured withreliability.

Trade and other

receivables

Christchurch earthquake

insurance has been

received;

Due fromsubsidiaries

Only from the parent

Derivative financial

instruments

Forward foreign exchange

deals to hedge against

currency risk.

Prepayments For stock and inventory

Inventories Inventory adjustments take

into consideration stock

obsolesence


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Non current assets

Intangible assets Software - on which depreciation

and amortization is calculated

Fits the recognition

criteria

Investment in subsidiaries 100% of the group owns the

subsidiaries

Fits the recognition

criteria

Property, plant and equipment Land valuation; buildings atvaluation; fixtures and fittings;

plant and equipment

Fits the recognitioncriteria


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Liabilities

Trade payables Accounts payables Fits the recognition criteria

Employee benefits Holiday pay accruals and

other benefits

Fits the recognition criteria

Other payables Fits the recognition criteria

Taxation payables Foreign investor tax credits;

tax paid

Fits the recognition criteria


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Monetary principle : The reporting currency usedis New Zealand dollars

Accounting Entity Concept : The parent company(or owner) transactions are defined separately fromthe entities. (Example Note of Account -3 pg. 21)

Accounting Period Concept: Each entitys

reporting period has been divided artificially intoyearly segments from the 1stof August to the 1stofAugust. Entities also use the accrual concept for

reporting.

Going Concern Principle: It is assumed that thebusiness will continue to operate healthily into thefuture. (Example Chairmans report pg. 7 and

Ratios given in the highlights)


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Matching Concept: Revenues and expenses are

reconciled in the reports in an consistent manner.(Example Statement of income pg.9)

Historical cost conventionThese financial statements have been prepared under the

historical cost convention, as modified by the revaluationof financial assets and liabilities (Example Notes ofaccount 1.13, pg.18).

Critical accounting estimates, judgements and

assumptionsThe preparation of financial statements in conformitywith NZ IFRS requires the use of certain criticalaccounting estimates. It also requires management toexercise its judgement in the process of applying theCompanys accounting policies.


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Chairman : Warren James Bell

The mention of the executive that theyare still looking for could affect theanalyst's prediction of share prices.

Future Outlook gives higher profitstatements for the current financial year.

And the Dividend section providesdetails on the shareholder value.


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Audit was conducted by PWC (for which they

were paid $108,700)

PWC has provided an independent auditors

report

PWC has also provided additional notes to addfactual clarifications to the financial statements,including the statements of comprehensiveincome, changes in equity and cash flows for theyear.

PWC notes to the financial statements include asummary of significant accounting policies andother explanatory information for both the

Company and the Group.


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PWC states that the financial statements:

Comply with NZ GAAP standards

Comply with IFRS guidelines

Give a fair and true view of the financialposition of the Company as of 1 August 2012,and their financial performance and cash flows

for the year that ended


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The Auditors Report in this case does play a

role, in terms of giving reliability to the financialstatements of the company for the year.

Investors should take the auditors report as part

of a whole, and should consider investment onlyafter due consideration of all financialstatements, relevant competitor analysis and anunderstanding of the current market position.


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Example : Accounting Entity Concept

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