Corporate Accounting – BA214

Running Head: Corporate Accounting
Corporate Accounting – BA214
Student Name:
Student Number:
Name of University:
Author’s Note:

1
Corporate Accounting
Executive Summary:
The assignment is a written report to the Chairman by the CFO of Star Pty Ltd. (SPL)
In this assignment, we shall discuss various way to issue and increase share capital,
analyze Chapter 7 of the listed rules of ASX in respect of share issue and review CSL
Ltd.’s annual financial statements to understand how it has raised funds and
increased its share capital.

2
Corporate Accounting
Table of Contents
Executive Summary:.......................................................................................................................................................1
Introduction 3
Current Arrangements for regulation of company accounting practices:.......................................................................4
Ordinary Share vs. Preference Share..............................................................................................................................5
Restrictions on conversion of Ordinary shares to Preference shares:.............................................................................6
Underwriting or Oversubscription of Share Issue:.........................................................................................................6
Procedure of Share Forfeiture:........................................................................................................................................7
Increase in Share Capital:...............................................................................................................................................7
Rights Issue, private placement of shares, share option and share buyback...................................................................8
Analysis of CSL Ltd.......................................................................................................................................................9
Conclusion 10
References 11

3
Corporate Accounting
Introduction
As mentioned in the case, Star Pty Ltd is a proprietary limited company which is
required to explore new funding methods. It is listed on the ASX and wishes to
expand its existing operations either by exploring new businesses or taking over
another company. For the same, it needs to raise capital.
As the CFO of the company, below is my detailed report to the Chairman on the
various queries and requirements.