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Corporate Accounting Assignment - Woolworth group

   

Added on  2021-06-17

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Running head: CORPORATE ACCOUNTINGCorporate AccountingName of the Student:Name of the University:Author Note
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1CORPORATE ACCOUNTINGTable of ContentsIntroduction......................................................................................................................................2Cash Flow Statement.......................................................................................................................2I The list of the items to be reported in the cash flow statement of the entity:................................2ii) Comparative analysis of the three broad categories of cash flows:............................................4Other Comprehensive Income Statement........................................................................................6iii) Items that are being reported in the other comprehensive income statement:...........................6iv understanding of the each item that is reported in the other comprehensive income statement.7v reasons for not reporting the same in the profit and loss statement of the entity:........................8Accounting for Income tax:.............................................................................................................8vi Income Tax Expenses..................................................................................................................9vii Comparing the amount...............................................................................................................9viii deferred Tax Assets and liability.............................................................................................10ix Current tax assets or income tax payable..................................................................................10x Income tax paid and income tax expenses comparison..............................................................10xi New Insight................................................................................................................................11Conclusion:....................................................................................................................................11References:....................................................................................................................................12
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2CORPORATE ACCOUNTINGIntroduction In the present report, Woolworth group has been selected for analysing whether the financialstatements that are presented by the company are in accordance with the accounting standardsand the provisions of the corporation act 2001. The reports provides a detailed analysis of thevarious segments of the annual report. Cash Flow StatementThe cash flow that has been prepared by the entity is based on the direct method of preparingcash flow statement. The first time being the receipts from the customers confirms the notion.The cash flow statement fo the company has been divided into three categories like the operatingactivities, investing activities and the financial g activities (Bhasin, 2015). I The list of the items to be reported in the cash flow statement of the entity:the constituents of the cash flow statement of the company are as follows:a)Receipt from customers- this is the amount that represents the amount of cash flow thatthe company has received from its customers from the sale of the products and servicesthat were reign produced by the entity. It can be seen that the receipt from the customersamounted to 65329.8 and 65498.9 million in the year 2016 and 2017 respectively. Thissignifies that the collection of the company from the customers has increased over theperiod of one year (Jefrey, 2018). b)Payments made to the suppliers of the company- this amount represents that amount thatthe company has paid to the suppliers of the company from whom the company hadpurchased the various raw material and other things that are going to be used in theprocess fo carrying out the business of the entity. it can be seen that the amount that is
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3CORPORATE ACCOUNTINGpaid to the suppliers of the company amounted to 61834.5 and 61474.8 million in theyear 2016 and 2017 respectively. this suggests that the payment that has been made to thesuppliers of the company has decreased over the period of one year. c)Net interest paid- this refers to the payment that the company has made to the thirdparties and the financial institutions from which the company has taken loan. The itemalso contains the interest that is being received by the borrowing that has been given bythe company to the other entities and the interest charged from the customers due to latepayment of the invoice (Tahat et al., 2017). The net interest is received after deductingthe nett interest expense of the company from the interest income fo the company. the netinterest of the company amounted to 289.3 and 234 in the year 2016 and 2017respectively. It can be observed that the interest that is paid by the company has reducedover the period of last one year. d)Income tax paid- this represents the amount that is being paid by the company to thegovernment by way of taxes that is levied on the income that is generated by thecompany. it can be seen that the income tax expense of the company amounted to 848.5and 668.1 respectively for the year 2016 and 2017. It can be seen that the amount paid inrespect of the taxes is reducing over the period of one year (Heese et al., 2015). Thereason for this could be that the profits of the company have reduced over the period ofone year. e)Proceeds from the sale of property, plant and equipment- this represents the amount thatis generated from the sale of the property, plant and equipment of the company.
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