Investor Presentaiton
110
Notes to the Consolidated Financial Statements
1.2
Other significant accounting policies (continued)
2 Group performance
111
Annual Report 2023
Woolworths Group
SUSTAINABILITY DISCLOSURE STANDARDS
During the period, the International Sustainability Standards Board (ISSB) published the following sustainability
reporting standards:
•
IFRS S1 General Requirements of Sustainability-related Financial Information, which sets out the core content
for a complete set of sustainability-related financial disclosures, thereby establishing a comprehensive baseline
of sustainability-related financial information; and
IFRS S2 Climate-related Disclosures, which will require the Group to provide information that enables the users of its
financial statements to understand the Group's governance, strategy, risk management, and metrics and targets
in relation to climate-related risks and opportunities.
Notwithstanding that these standards are not mandatory for adoption for the financial period ended 25 June 2023,
the Group acknowledges the growing importance of sustainability-related disclosures, and has considered the potential
impacts of sustainability-related matters within the following notes:
•
Note 3.6 - Property, plant and equipment;
•
Note 3.10 Impairment of non-financial assets;
Note 3.13 Provisions; and
Note 4.6 Borrowings.
These standards will be effective for the Group for the annual reporting period beginning on or after 1 July 2024.
AASB 17 INSURANCE CONTRACTS
AASB 17 Insurance Contracts (AASB 17) establishes the principles for the recognition, measurement, presentation and
disclosure of insurance contracts and supersedes AASB 4 Insurance Contracts (AASB 4).
The date of initial application of AASB 17 is for the annual reporting period beginning on or after 26 June 2023. The parent
entity will be impacted by the application of AASB 17 as it is a licensed self-insurer for workers' compensation insurance
in New South Wales, Queensland, Western Australia, South Australia, Tasmania and Northern Territory, and therefore
provides insurance to its subsidiaries. The Group is currently determining the final impact on the parent entity disclosures.
1.3
Critical accounting estimates and judgements
2.1
Revenue and other income
Revenue primarily comprises the sale of goods in-store and online.
Revenue by category
Sale of goods in-store
Sale of goods online
Other revenue¹
Total revenue
Revenue by geographical location²
Australia
New Zealand
Total revenue
Other income
Share of profit of investments accounted for using the equity method
Other³
Total other income
2023
$M
2022
$M
52,615
6,592
49,856
6,542
5,087
4,451
64,294
60,849
57,054
53,757
7,240
64,294
7,092
60,849
1
highlights
Performance
2
Business
review
56
68
221
229
277
3
297
1 Other revenue primarily comprises revenue from the distribution of food and related products for resale to other businesses, provision
of supply chain services to business customers, revenue from the provision of financial services, consulting revenue, and revenue relating
to the Endeavour Group Partnership Agreements.
2 Revenue by geographical location is allocated based on either the location inwhich the sales originated or location of the operation to which
they relate.
3 Other income comprises operating lease rental income, income from non-operating activities across the Group, and other income earned
from the Endeavour Group Partnership Agreements.
Report
Directors'
This section describes the critical accounting estimates and judgements that
have been applied and may have a material impact on the Group's Consolidated
Financial Statements.
In applying the Group's accounting policies, the directors are required to make estimates, judgements, and assumptions
that affect amounts reported in this Financial Report. The estimates, judgements, and assumptions are based on historical
experience, adjusted for current market conditions, and other factors that are believed to be reasonable under the
circumstances, and are reviewed on a regular basis. Actual results may differ from these estimates.
The estimates and judgements which involve a higher degree of complexity or that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next period are included in the followingnotes:
.
Note 3.3 Other financial assets and liabilities;
Note 3.5 Leases;
Note 3.10
Impairment of non-financial assets; and
Note 3.13
Provisions.
Revisions to accounting estimates are recognised prospectively.
Significant Accounting Policies
Sale of goods in-store
Revenue from the sale of goods in-store is recognised when control of the goods is transferred
to the customer. The amount recognised reflects the consideration to which the Group expects
to be entitled in exchange for those goods.
Sale of goods online
Revenue from the sale of goods online is recognised when control of the goods passes to the
customer, which is typically at the point the goods are delivered to, or collected by the customer.
Where payment is received prior to the transfer of control to the customer, the revenue is deferred
in contract liabilities within trade and other payables in the Consolidated Statement of Financial
Position until the goods have been delivered to, or collected by the customer.
4
Report
Financial
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