Refer to the latest financial report of JB Hi-Fi Limited on its website, www.jbhifi.com.au, and answer the following questions.

1. From the nature of the report, JB Hi-Fi Limited is a reporting entity. Why is this so?

2. Who would you consider to be the main users of the JB Hi-Fi Limited financial report? What types of decisions would they make based on the information contained in the report?

3. Does JB Hi-Fi Limited use the historical cost system or some other method of valuing assets? Is there any evidence that the company has revalued any of its assets in the past 12 months? Explain.

4. In the report, a summary statistical analysis is often presented. What is the importance of the statement of accounting policies in interpreting these figures? Do you consider that the figures would be of benefit to users of the report?