Current Issues in Australian Accounting:Harvey Norman
Table of Contents
Accounting Issues based on Globalisation. 4
Accounting issues based on accounting systems. 5
Accounting issues based on CSR.. 7
Accounting issues based on Conceptual Framework. 8
Accounting issues based on Transfer Pricing. 8
Introduction
Harvey Norman is a large capital firm in Australia that deals in furniture, computers, communication equipment and other consumer electronics/appliances. It is a retail franchise in Australia which started with their first retail outlet in 1961 specialising in electrical appliances. The flagship name Harvey Norman is a multinational brand with all the stores owned by the Harvey Norman Holdings ltd. The company recorded its 280th store that was opened in 2016. The company has a number of well-known subsidiaries like the Domayne and Joyce Mayne brands and currently owns 86 stores overseas. The superstore format of the store has been especially successful in the global scenario with suppliers like Apple, IBM, Microsoft, Compaq, Symantec, Corel and other globally accredited vendors. As of the 2015-16 financial year ends, Harvey Norman had reached the zenith of its globalisation endeavour with retail franchises in 7 different foreign nations, which are either entirely owned by Harvey Norman Holdings as listed under the Australian Securities Exchange or partly owned in partnership with local companies. For e.g. The Singaporean counterpart which operates 17 retail outlets is owned by local business entity Pertama Holdings ltd. However, the rampant globalisation and modernization of the business warrants the need for flexible accounting and reporting strategies for the management and the accounting team. To ensure a sustainable growth, therefore, Harvey Norman must cater to the various issues of accounting that may arise due to the unquenchable advancement of their business.
(I.C. RS 2226)