Accounting Comparison Report: Companies in Mining and Manufacturing

This report provides a comparative analysis of accounting practices across four companies: Rus Mining, Fortescue Metals (mining industry), Blackmores, and Baxter Health Care Ltd. (manufacturing industry). The report examines revenue recognition, asset recognition, and liabilities for each company, offering insights into their financial performance and strategies. It delves into the products and services offered, organizational structures, and key business achievements of each firm. The analysis includes a detailed comparison of financial metrics, such as revenue, net income, and market share, highlighting the differences and similarities in their accounting approaches. The report also discusses the assets and liabilities of each company, providing a comprehensive overview of their financial positions. This report is a valuable resource for understanding the financial dynamics of the mining and manufacturing sectors, demonstrating the importance of accounting in different industries.

Compare and Comparison

Executive Summary:
The paper is based on accounting aspect and the areas of focus include assets, liabilities and also
revenue recognitions of the selected companies. The report has been structurally formed adhere
these points.

Table of Contents
Introduction......................................................................................................................................4
Introduction of the two selected companies....................................................................................4
Compare and contrast the revenue recognition of the companies...................................................7
Compares and contrast the asset recognition of the companies......................................................8
Compare and contrast the liabilities of the companies....................................................................9

Introduction
The paper is based on the discussion of the accounting issues about the group of
companies that has been presented here. The paper has been presented with different heads and
all those are crucial for the topic (Brakman and Van Marrewijk 2017). The main focus of the
paper is to talks about the asset, the latest annual report of the group of companies and also
present or put forward a detailed comparison among the companies. There are industry groups
and those are manufacturing industry and mining industry and on the basis of these two groups
of industries, four companies or organizations have been selected (Chen et al. 2016). The
important points that come in the paper include introduction to the selected companies or the
group of companies and the two industry type as well. Other than this the points that are covered
also include revenue recognition, assets recognition and liabilities recognition as well (Dean et
al. 2014). The report has been very structurally formed and it helps in clear understanding of the
differences that focus on resources and accounting aspects of both the two group of companies.
Introduction of the two selected companies
The selected companies here are Rus Mining and Fortescue metals from the mining
industry and Blackmores and Baxter Health Care in Australia (Koitsiwe and Adachi 2015). These
are the 4 companies and they form two group which are mining industry group and
manufacturing industry group (Dean et al. 2014). The first point that can be discussed about is
the products and services. Rus Mining and Fortescue metals are well known and reputed mining
organizations and the products and services that they offer include excavation, mining, drilling,
contracts based on these and the important products of the organizations include iron, coal,

metals and others (Chen et al. 2016). The organizations mainly focus on their mining work and
thereby iron is their chief and preliminary product (Koitsiwe and Adachi 2015). However Rus
Mining is a contracting organization in Australia that provides coal mining services to different
organizations in the industry and provides them with important and innovative equipments, tools
and also mining labor to assist the companies that have hired them. Rus Mining is thereby
mainly placed within the sphere of mining contracts for the other related organizations. On the
other hand Fortescue metals is also there and it specializes in products like coal and is regarded
to be 4th largest iron ore producers across the world (Dean et al. 2014). Fortescue metals were
established in the year, 2003 and Rus Mining was established in the year, 2000 (Chen et al.
2016). The organizational structure of Rus Mining include team ownership where a number of
expert and knowledgeable mining experts have come together and launched this organization
that manages their operation and also regulates the mining services of the company that is
provided to many mining projects and rents and sells mining equipments and mining solutions as
well (Koitsiwe and Adachi 2015). On the other hand the organizational structure of Fortescue
metals include management board that has audit and risk management committee, remuneration
and nomination committee and finance committee (Brakman and Van Marrewijk 2017). The
management board has board of directors and they regulate the organization and also the work of
the organization (Brakman and Van Marrewijk 2017). Main activities of Fortescue metals include
mining and that is iron ore mining and on the other hand the main activity of Rus Mining is
providing mining solution (Dean et al. 2014). Business achievement of Rus Mining include
introducing latest and innovative mining solution, one of the leading mining solution
organizations in Australia, and is also awarded with “Belt and Relocation Installation”. On the
other hand the achievements of Fortescue metals include international name and reputation,

having a huge region of Pilbara to their control, US$1.28 billion Eliwana project in their hand,
holdings of more than 87,000 km.
The two groups of organizations under the manufacturing field include Blackmores and
Baxter Health Care Ltd. Blackmores was established in the year, 1930 and the services and
products of the organization include mineral, vitamin and nutritional supplements (Zhang, Wang
and Fu 2017). The service of this organization is based on providing supplements and is related
to healthcare of people (Koitsiwe and Adachi 2015). It manufactures the vitamins and mineral
supplements and thereby sells them in the market. Different kinds of supplements in different
forms of packaging can be found in the market by Balckmoes (Zhang, Wang and Fu 2017). The
achievement of this organization includes most trusted and most popular supplement supplier or
manufactures in Australia and other than this the achievement of the organization also include its
inclusion in Queensland Business Leaders of Fame (Koitsiwe and Adachi 2015). It has a legacy
of its own and that is carried forward with the present day activities and work of the organization
(Zhang, Wang and Fu 2017). Main activities of the organization include testing, supplement
formation, research as this is required to manufacture the final product and others (Brakman and
Van Marrewijk 2017). The organizational structure of Blackmores include a governing
management structure where it is the management board that decides and controls all the work of
the organization like manufacturing pattern, advertising, supplement types and also regulates the
doctors and the researchers who work on brining the result (Keating et al. 2017). Team leader
structure in the underlying departments of the organization can be seen (Zhang, Wang and Fu
2017). The other company is Baxter Health Care Ltd. and this was established in the year, the
organization works in healthcare field and the products and services of the organization mainly
includes medical products and equipments. Blood collection equipments, surgical aids, different

types of hospital devices, hospital medical disposables and pharmacy services are also provided
(Keating et al. 2017). The achievement of the organization includes being the most popular and
the leading seller and manufacturer of medical products and the achievement also include the
having leading health organizations as their client (Keating et al. 2017). Main activities of the
organization include manufacturing the medical and health care products that are essential in the
healthcare departments (Dean et al. 2014). The organizational structure of the organization,
Baxter Health Care Ltd. is management controlled and it is the hierarchy of managers who
control the organization.
Compare and contrast the revenue recognition of the companies
Revenue of Fortescue metals is near about $8,447 billion as per the latest report of 2017
and the net income of the organization is estimated to be $2.093 billion. This is the first initial
exposure of the revenue recognition of this organization (Chen et al. 2016). In comparison to
this the revenue of Rus Mining has been 32% more than that of the previous year and the total
estimate of net income of $1.098 billion are stated as per the latest report of 2017. Other than this
the net market share of Fortescue metals is 58% in Australia and in comparison the market share
of Rus Mining is 32%. The yearly revenue of Fortescue metals is 54% of their investment
amount wjereas the yearly revenue amount of Rus Mining in comparison to Fortescue metals is
38% against their investment price or amount.
Revenue of blackmores is estimated to be $459,000 as per the latest report of 2017 and
the stock price of Blackmore is 137.75. Other than this the revenue of the organization like
market share is about 62% in Australia (Chen et al. 2016). In comparision to this the revenue of
Baxter Health Care Ltd. is a little less and that is nearly $356, 974 as estimated in the year 2017.

Other than this the net income percentage of the organization is 45% and that is almost similar to
that of Blackmores which is 48% (Chen et al. 2016). The share price of Baxter Health Care Ltd.
is near about 32% in the Australian market and in comparison to that the share price of
Blackmores is 30%. Both the organizations come from medical and healthcare field and the
revenue recognition is thereby as presented here.
Compares and contrast the asset recognition of the companies
This provides brief of all the asset of the 4 organizations or the two industry group
presented here. The assets of Fortescue metals include the huge iron mining hubs that are under
their name. Specifically the asset of the organization includes shares of small iron ore companies
like Atlas iron and BC iron (Sing et al. 2015). Other than this the asset of the organization also
include private railway, the shipping fleet that it uses to ship all the iron to the point of delivery,
the different mining projects and others. The asset of the organization also includes the monetary
deposits or profit as these are also a part of liquid asset to be precise. The haul railway is one of
the biggest assets of the organization as it helps in carrying and transporting all the products to
different points of business (Sing et al. 2015). It can take load up to 32,500 tonne and the
infrastructure of the railway port acts as one of the most coveted and important asset of Fortescue
metals (Zhang et al. 2015). In comparison to this Rus Mining has asset that include latest tools
and huge equipments, their warehouse that is spread across major parts of Australia, mainly in
Bowen basin, the South part of Australia, Hunter region and others (Sing et al. 2015). One of
the important assets of the organization includes the workers who are there to act as the service
men or service team for mining solution approaches. For Rus mining the employees is one of the

priced asset and they are the core of the business services that are provided to all the projects and
also to the organization that approach Rus Mining.
Asset of Blackmores include its research formula, the variety of supplement products in
the market, the researchers, the share holdings with most of the health care organizations and
others (Chen et al. 2016). On the other hand the asset of Baxter Health Care Ltd. include the
medical equipments, the share holdings of the organizations, the contacts and the business shares
or relationship with the healthcare centers that require the equipments and the products and
some others (Chen et al. 2016). Other than this the liquid asset in this prospect includes the
stock price of both the companies and the arket value of the both the companies (Dean et al.
2014). The inventory of Baxter Health Care Ltd. acts as one of the important assets and on the
contrary for Blackmores the asset includes the employees as that consists of researchers and
health professionals who prepare the supplements.
Compare and contrast the liabilities of the companies
The liabilities of the organization, Fortescue metals include their stakeholders, the
suppliers, the associated organizations that has their share in Fortescue metals and some others.
Liability is a kind of responsibility or is a kind of concern for any organization as they need to
take care of that and thus it is an important point to focus at (Sing et al. 2015). The liabilities of
this organization also include the project sites as they need to be maintained and supervised
(Chen et al. 2016). They are spread over a huge span of area including Pilbara region,Solmon
hub, Chichester hub and some others. This is to be invested for maintenance and management
and thereby is a liability for Fortescue metals. On the other hand the liability of Rus Mining
includes the employees as they are the main team here and these are the people who help the

organization in getting their work done. in comparison to Fortescue metals it can be said that Rus
Mining has less liability (Sing et al. 2015). For Rus Mining the liability is centered on the
employees as they need to be provided good pay and also need to be provided good facilities
(Chen et al. 2016). They are an asset in one hand and also a liability to some extent.
Liability of Baxter Health Care Ltd. includes accrued expenses, the investment cost, the
monetary provision for maintenance of suppliers and some others. on the other hand the
liabilities of Blackmores are deferred payments, the additional board members who contribute
nothing to the organization and some others.

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