Industry and company analysis
Executive Summary 3
1. Summary of Company`s Activities and Business Strategies 4
1.1 Major Activities in Last Three Years 4
1.2 Business Strategy and Development Strategy 4
2. Key Accounting Policies and Standards 5
2.1 Revenue Recognition (AASB 118) 5
2.2 Consolidated and Separated Financial Statement (AASB 132) 5
2.3 Property, Plant, and Equipment (AASB 116) 5
2.4 Foreign Currency (AASB 121) 5
3. Evaluation of Flexibility Management 6
3.1 Intangible Assets (AASB 138) 6
3.2 Inventory (AASB 102) 6
3.3 Financial Instruments (AASB 132) 6
4. Evaluation of Accounting Strategies 7
4.1Leased Non-Current Assets 7
4.2 Hedging 7
5. Evaluation of Quality of Disclosure 7
6. Potential Questionable Numbers and Their Distortions 8
7. Financial Press Discussion of TOL`s Performance and Accounting Numbers 9
Appendix 1: TOL - Annual Report 2008 : Balance Sheets 11
Appendix 2: TOL - Annual Report 2008 : Statements of Cash Flow 12
Appendix 3: TOL - Annual Report 2008 : Intangible Assets 13
Appendix 4: TOL - Annual Report 2008 : Expenses 15
Appendix 5: TOL - Annual Report 2008 : Payables 16
Appendix 6: TOL - Annual Report 2008 : Acquisition and Disposals 17
Appendix 7: TOL - Annual Report 2008 : Significant Accounting Policies 18
Appendix 8: TOL - Annual Report 2008 : Commitments for Expenditure 19
Appendix 9: TOL - Annual Report 2008 : Financial Instruments 20
The following report conducts the accounting analysis of Toll`s Holdings Ltd (TOL) operation activities. The analysis is based on TOL`s Annual Report data for the 2007-2008 financial period which reveal company`s business performance, accounting strategies, and achievements. The company operates an extensive network throughout Australia, New Zealand and Asia delivering seamless, end-to-end, local, regional and global supply chain solutions. The first section of report starts with a brief company`s profile and identification of basic recent business strategies and activities implemented within the company. Next two sections indentify key accounting
4. Evaluation of accounting strategies
4.1 Leased Non-Current Assets
Toll has large amount of Non-current assets, such as properties, plants and equipments (PPE); sizable proportion of total PPE is under lease contracts. However, the commitments for expenditure of PPE lease decreased from A$1,180.7m (2007) to A$781.5m (2008), according to notes 31 of Toll`s annual report 2008; this decrease may indicate that the company 3 purchased more PPE than proceeded with lease payments. As mentioned in section above, the company depreciates PPE over the shorter of the lease term for purpose of keeping ownersh
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