1) If you were the store manager ,what would be your responsibilities and what are the things you would be accountable for as the store financials are concerned why do you think so ? deliberateAns: Retail StoreA fixed set up or location offering merchandise in small quantities to the consumers for their end-use is called a retailstore.Store Manager An individual responsible for managing the overall functioning of the store is called a store manager. A store manager takes care of the day to day operations of the store and ensures maximum profitability for his store.In simpler words a retail store is a store manager’s baby.Hierarchy General Manager ↑ Store Manager ↑ All employees of the store (Floor manager, cashier, Department manager, Asst Store manager)Responsibilities of the Store Manager Recruiting employees for the store is the store manager’s prime responsibility. He not only has to hire the right candidates for the store but also train them for their overall development. He must ensure that all the employees (floor manager, department manager, cashier and so on) contribute to their level best for the effective functioning of the store. He must act as a strong pillar of support and stand by his team at the hour of crisis. It is his duty to acquaint his team members with the latest trends in fashion or any other newly launched retail software. It is his responsibility to delegate responsibilities to his subordinates according to their specializations and extract the best out of them. The store manager must motivate his team members from time to time. The store manager must make sure his store is meeting the targets and earning profits. He is responsible for the smooth and effective functioning of the store. The store manager is responsible for maintaining the overall image of the store. It is his duty to sensibly display the merchandise so that it immediately catches the attention of the customers. The store manager must ensure that his store meets the expectations of the customers and lives up to its predefined brand image. He must ensure: i. The store is kept clean ii. Shelves and racks are properly stocked and products do not fall off the shelves. iii. Mannequins are kept at the right place to attract the customers into the store and rotated frequently. iv. The merchandise should be according to the season as well as the latest trends. v. The store is well lit, ventilated and offers a positive ambience to the customers. vi. The signage displaying the name and logo of the store is installed at the right place and viewable to all. One of the major responsibilities of the store manager is to make the customers feel safe and comfortable in the store. It is his key responsibility to make sure that the customer leaves the store with a pleasant smile. He is responsible for managing the assets of the store. The security and safety of the store is his responsibility. The store manager must ensure that sufficient inventory is available at the store to avoid being “out of stock”.
He along with his subordinates are responsible for planning, managing profit and loss, handling cash at the store as well as collating daily sales as well as other necessary reports. He must ensure that the store is free from pilferage.Things that would be accountable for as far as the store operation are concernedc) SalesRendering of servicesRevenue from rendering of services is recognised when the stage of completion of the transactionat the reporting date can be measured reliably and the cost of rendering those services can bemeasured reliably.Sale of goodsRevenue is recognised from the sale of goods when the significant risks and rewards ofownership control transfer to the purchaser and can be measured reliably.d) Grants and ContributionsGrants, contributions, donations and gifts that are non-reciprocal in nature are recognised asrevenue in the year in which Retail Stores obtains control over them.Contributed assets are recognised at their fair value. Contributions of services are recognisedonly when a fair value can be determined reliably and the services would be purchased if theyhad not been donated.e) Cash and cash equivalentsFor the purposes of the Statement of Financial Position and the Statement of Cash Flows, cashassets include cash on hand, all cash and cheques receipted but not banked as at reporting dateas well as deposits at call with financial institutions.f) ReceivablesReceivables are recognised at the amount due at the time of sales of goods or services at agreedpurchase/contract price. Settlement of these amounts is required within 30 days from invoicedate. The collectability of receivables is periodically assessed with adequate allowance being
made for impairment. All known bad debts were written-off as at the reporting date.Refer to note 11 and note 22 for further information on receivables.g) InventoriesInventories held for sale are valued at the lower of cost and net realisable value.Cost is assigned on a weighted average basis and includes expenditure incurred in acquiring theinventories and bringing them to their existing condition, except for training costs which areexpensed as incurred.Net realisable value is determined on the basis of Retail Stores’ normal selling pattern.Any cost associated with marketing, selling and distribution are deducted to determine netrealisable value.h) Acquisitions of assetsActual cost is used for the initial recording of all asset acquisitions. Cost is determined as thevalue given as consideration plus costs incidental to the acquisition, including all other costsincurred in getting the assets ready for use.Where assets are received free of charge from a Queensland department (whether as a result ofa machinery-of-government change or other involuntary transfer), the acquisition cost isrecognised as the gross carrying amount in the books of the transferor immediately prior to thetransfer together with any accumulated depreciation.Assets acquired at no cost or for nominal consideration, other than from an involuntary transferfrom a Queensland government entity, are recognised at their fair value at date of acquisition inaccordance with AASB 116 Property, Plant and Equipment.i) Property, plant and equipmentItems of property, plant and equipment with a cost or other value equal to or in excess of thefollowing thresholds are recognised for financial reporting purposes in the year of acquisition:Buildings $10,000
Land $1Plant and equipment $5000Items with a lesser value are expensed in the year of acquisition.Land improvements undertaken by Retail Stores are included with buildings.Land is recorded at $1 for Retail Stores as it is subject to a deed of grant in trust.j) Depreciation of property, plant and equipmentBuildings and plant and equipment are depreciated on a straight line basis, so as to progressivelyallocate the carrying amount of such depreciable assets over their estimated remaining usefullives to Retail Stores. The remaining useful lives of all buildings, plant and equipment arereviewed annually.Assets under construction (works in progress) are not depreciated until they reach servicedelivery capacity. Service delivery capacity relates to when construction is complete and theasset is first put to use or is installed ready for use in accordance with its intended application.These assets are then reclassified to the relevant classes within property, plant and equipment.Any subsequent expenditure that increases the originally assessed capacity or service potential ofan asset is capitalised and the new depreciable amount is depreciated over the remaining usefullife of the asset to Retail Stores.The depreciable amount of improvements is allocated systematically over the estimated usefullives of the improvements.j) Depreciation of property, plant and equipment (continued)For each class of depreciable asset, the following depreciation rates were used:Class Rate %Buildings 2-3Plant and equipment 7 - 33k) Revaluations of property, plant and equipment
Buildings are measured at fair value in accordance with AASB 116 Property, Plant and Equipmentand Queensland Treasury’s Non-Current Asset Policies for the Queensland Public Sector.Buildings are comprehensively revalued at least once every five years with interim revaluations,using indices provided by the State Valuation Service, being otherwise performed on an annualbasis where there has been a material variation in the index.The cost of buildings acquired or constructed during the financial year has been judged bymanagement of Retail Stores to materially represent their fair value at the end of the reportingperiod.Plant and equipment is measured at cost in accordance with Treasurys Non-Current AssetPolicies for the Queensland Public Sector.Any revaluation increment arising on the revaluation of an asset is credited to the assetrevaluation surplus of the appropriate class, except to the extent to which it reverses a revaluationdecrement for the class previously recognised as an expense. A decrease in the carrying amounton revaluation is charged as an expense, to the extent it exceeds the balance, if any, in therevaluation reserve relating to that class.On revaluation, accumulated depreciation is restated proportionately with the change in thecarrying amount of the asset and any change in the estimate of remaining useful life.Materiality concepts under AASB1031 are considered in determining whether the differencebetween the carrying amount and the fair value of an asset is material.l) Impairment of non-current assetsAll non-current physical assets are assessed for indicators of impairment on an annual basis. If anindicator of possible impairment exists, Retail Stores determines the assets recoverable amount.An impairment loss is recorded where the asset’s carrying amount materially exceeds therecoverable amount.The asset’s recoverable amount is determined as the higher of the asset’s fair value less costs to
sell and depreciated replacement cost.An impairment loss is recognised immediately in the Statement of Comprehensive Income, unlessthe asset is carried at a revalued amount. When the asset is measured at a revalued amount, theimpairment loss is offset against the asset revaluation surplus of the relevant class to the extentavailable.l) Impairment of non-current assets (continued)Where an impairment loss subsequently reverses, the carrying amount of the asset is increasedto the revised estimate of its recoverable amount, but the increased carrying amount cannotexceed the carrying amount that would have been determined had no impairment loss beenrecognised for the asset in prior years. A reversal of an impairment loss is recognised as income,unless the asset is carried at a revalued amount, in which case the reversal of the impairmentloss is treated as a revaluation increase.m) PayablesTrade creditors are recognised upon receipt of the goods or services ordered and are measuredat the agreed purchase/contract price. Amounts owing are unsecured and are settled according toagreed vendors’ terms normally 14 days.n) Financial InstrumentsRecognitionFinancial assets and financial liabilities are recognised in the Statement of Financial Positionwhen Retail Stores becomes party to the contractual provisions of the financial instrument.ClassificationFinancial instruments are classified and measured as follows:Cash and cash instruments – held at fair value through profit or lossReceivables – held at amortised costPayables – held at amortised cost.
All other disclosures relating to the measurement and financial risk management of financialinstruments held by Retail Stores are included in Note 22.o) Other financial liabilitiesRepayable advances are recognised as other financial liabilities and held at amortised cost.p) Employee benefitsEmployer superannuation contributions, annual leave levies and long service leave levies areregarded as employee benefits. Payroll tax and workers’ compensation insurance are aconsequence of employing employees, but are not counted in an employee’s total remunerationpackage. They are not employee benefits and are recognised separately as employee relatedexpenses.Wages and salariesWages and salaries due, but unpaid at reporting date, are recognised in the Statement ofFinancial Position. For unpaid entitlements expected to be paid within 12 months, the liabilitiesare recognised at their undiscounted values.p) Employee benefits (continued)Annual leaveThe Queensland Government’s Annual Leave Central Scheme (ALCS) covers departments,commercialised business units and shared service providers. Under this scheme, a levy is madeon Retail Stores to cover the cost of employees annual leave (including leave loading and oncosts).The levies are expensed in the period in which they are payable. Amounts paid toemployees for annual leave are claimed from the scheme quarterly in arrears.Accordingly, no provision for annual leave is recognised in Retail Stores financial statements asthe liability is held on a whole-of-government basis and reported in those financial statementspursuant to AASB 1049 Whole of Government and General Government Sector FinancialReporting.Sick leave
Prior history indicates that, on average, sick leave taken each reporting period is less than theentitlement accrued. Retail Stores has made the judgement that this is expected to continue infuture periods. Accordingly, it is unlikely that existing accumulated entitlements will be used byemployees and no liability for unused sick leave entitlements is recognised. As sick leave isnonvesting, an expense is recognised for this leave as it is taken.SuperannuationEmployer contributions for superannuation are paid to QSuper, the superannuation scheme forQueensland Government employees, at rates determined by the Treasurer on advice from theState Actuary. Contributions are expensed in the period in which they are paid or payable. RetailStores’ obligation is limited to its required fortnightly contribution to QSuper.The QSuper scheme has defined benefit and defined contribution categories. The liability fordefined benefits is held on a whole-of-government basis and reported in those financialstatements pursuant to AASB1049 Whole of Government and General Government SectorFinancial Reporting.Long service leaveUnder the Queensland Government’s long service leave scheme, a levy is made on Retail Storesto cover the cost of employees’ long service leave. This levy is expensed in the period in which itis payable. Amounts paid to employees for long service leave are claimed from the schemequarterly in arrears.No provision for long service leave is recognised in these financial statements, as this liability isheld on a whole-of-government basis and reported in those financial statements pursuant toAASB 1049 Whole of Government and General Government Sector Financial Reporting.q) InsuranceThe Retail Stores’ non-current physical assets and other risks are insured through theQueensland Government Insurance Fund, with premiums paid on a risk assessment basis. Inaddition, Retail Stores pays premiums to WorkCover Queensland in respect of its obligations for