HI5020 Annual Report of Blackham Resources Limited
Added on 2020-05-28
13 Pages2934 Words74 Views
Running head: ACCOUNTINGAccountingName of the Student:Name of the University:Authors note:
ACCOUNTING1Table of ContentsIntroduction................................................................................................................................2Items of Equity and reason of change........................................................................................2Tax Expenses of the company....................................................................................................4Accounting income and Tax Income.........................................................................................5Deferred tax Assets or Liabilities...............................................................................................6Current Tax Assets or Income Tax Payable...............................................................................7Income Tax Expenses and the income tax paid.........................................................................8Findings and conclusion.............................................................................................................9Reference..................................................................................................................................10
ACCOUNTING2IntroductionIn this report, an attempt is made to analyse the latest annual report of BlackhamResources Limited. The main purpose of the report is to discuss the items of the equity andthe reason for their changes. The report also highlights the tax expenses of the company andthe difference between accounting income and taxable income. The main aim of the report isanalyse the annual report and highlight the findings related to tax.Items of Equity and reason of changeIn this report, the company whose financial statement has been analysed isBLACKHAM Resource Limited. In this part discussion regarding the company’s equity andchanges in it is being undertaken. In accounting concepts, the word equity has differentmeanings. Generally, when the word equity is used it usually indicates the value of an assetsubtracted from the other liabilities (Conrad et al. 2016). But in this context, equity meanssomething else. Here equity means the total amount of contributions/ funds invested by theowner of the company toward the capital of the company and as well as the amount ofretained earnings or reserves or any losses (Bruce-Twum and Mensah 2015). This figureswhich are put up on the company’s balance sheet together forms the Equity for the company.It is also referred as the Shareholders’ Equity. Under the head Equity, the items found in thebalance sheet of Blackham Resources Ltd. are Issued Capital, Reserves and AccumulatedLosses. Figure 1: Equity
ACCOUNTING3(Source: Blackhamresources.com.au, 2018)Firstly, the term Issued capital refers to the amount or the number of shares that thecompany has already issued to its existing or new shareholders. The issued capital can neverexceeds the company’s authorised share capital as this portion of the capital is a part of theauthorised capital itself. On analysing the balance sheet of the company it was observed thatat the end of the financial year 2016, the issued capital for the company was $52,356,000which increased to $109,960,000 in the year 2017. This implies that the company has issuednew shared to its shareholders amounting to $57,604,000 during the year 2017 (Dalnial et al.2014). This is due to several events that took place in the year 2017 such as the companyissued shares on exercise of option amounting to $1,070,000. The company has also madeplacements of shares amounting to $60,000,000 and also issued shares in lieu of paymentswas 75,000 shares. Due to this, the company has to make some transaction expenses thatwere amounting to $3,527,000 to give effect to the above issues.Secondly, Reserves of the company was taken into account. Reserves refers to thataccumulated fund which are held in the form of liquid assets by any company, business andeven government so that they can meet any expected payments which are scheduled to bemade in future (Grant 2016). This reserves can also be used by the company to meet andunforeseen or emergency events. Similar to the issued capital, the reserves for the companywas also found to be increased from $4,854,000 in the year 2016 to $6,310,000 in 2017. Thiswas due to fact that the company issued options amounting $759,000 and also performancerights were also issued for $697,000.Finally the last item found under the head Equity in the balance sheet wasAccumulated losses. During the past few years, the company was suffering losses thus in the
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Corporate Accounting | Assignmentlg...
|12
|2707
|65
Corporate Accounting Platinum Asset Management Limited (PTM)lg...
|18
|2416
|50
Corporate Accounting Assignment - “Wesfarmer Ltd”lg...
|11
|3553
|69
Corporate Accounting Assignment | Annual Report Analysislg...
|9
|1297
|44
The Financial State Meme of the University Authorlg...
|11
|1942
|303
Tax Assignment | Financial Statement Assignmentlg...
|17
|2837
|55