Accounting for Corporations

ACCOUNTING FOR
CORPORATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Company and its Activities..........................................................................................................1
Equity Composition of Company................................................................................................2
Relationship of share price and share capital of company...........................................................3
Share price after one calendar month and its possible reasons. ..................................................4
Debt structure and external financing sources of company. .......................................................5
Key element in Fixed assets categories.......................................................................................6
Intangible assets and impairment policy followed. .....................................................................7
Financial operations of Company during the financial year........................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Accounting plays an important role in every organization to record, summarize and
present the accounting information in form of financial reports. Corporate structure is governed
by the set standards. The report is based on the annual and corporate structure of Wesfarmers
Ltd.
MAIN BODY
Executive Report Wesfarmers Limited
Company and its Activities
Since from its origin in 1914 as Western Australian farmers' cooperative, Wesfarmers
had grown into one of the largest listed company of Australia. It has headquarters in Perth,
Western Australia and is involved in diverse businesses (Wesfarmers, 2019). Wesfarmers is
predominant in Australian and New Zealand retails, chemical, fertilizers, coal mining and the
safety products. Divisions of Wesfarmers
Home Improvement and the Office Supplies
Division is made of Bunnings Warehouse, retailer of the home improvements and of outdoor
living products, in servicing home and the commercial customers of Australia & New Zealand
(Collison and et.al., 2016). Officeworks, supplier and retailer of the office product for home,
education and business in Australia.
Department Stores
Few years back it announced restructure of department store busieness into single division called
Department Stores, where each brand is operating independently.
Kmart
It is discount department stores retailer in New Zealand and Australia and provides retail
automotive repairs, services and tyres.
Target
It is also discount retail department store in Australia with more than 305 stores. In 2014, value
of the Target was written down by $680 million due to decline in profit.
Industrials
Organisational restructure of 2015 clustered three businesses Energy, Chemical and Fertilizers;
Resources ; and Industrial & Safety in single Industrial division.
Chemicals, Energy and Fertilizers
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Wesfarmers Chemicals, Energy and Fertilizers produce and market chemical, fertilizers & gas
products. The business include Australian Vinyls. CSBP, AGR, Evol LNG, QNP, Modwood and
Kleenheat.
Resources
Wersfarmers Resources own and operate world scale coal producing open cut resources in the
Australia. In Queensland it has Curragh producing metallurgical coals for exporting & steaming
coals for the domestic power generations.
Industrial and Safety
It provides industrial & safety products & services in New Zealand and Australia. Group has
various subsidiaries in this division.
Other Activities
Company has interest of 50% in Gresham Partners investment house and Equity funds, interest
of 50% in softwood sawmill and 24% in BWP Trust. Wesfamers is having 100% interests in
number of subsidiaries across globe like Australia, New Caledonia, New Zealand, United
Kingdom, Indonesia, Bermuda China and Singapore.
Equity Composition of Company
Equity capital of Company
Ordinary shares of company have no par value and are fully paid. The share do not bear
any special terms or conditions that affects income or the capital entitlement of shareholders. Th
reserved shares of company are the ordinary shares which were repurchased by companies and
have been held for the future use (Annual Reports, 2019, 2019). It includes reserves shares of
employees which are shares issued to the employees under shares loan plan. When share loans
are repaid in full, these are converted to the ordinary shares of company and are issued to
employee (Bischof, Laux and Leuz, 2019). Incremental cost that are attributable directly to issue
of new shares are shown as deduction in equity net off tax from proceeds. Company did not have
any shares authorised for the issue are due to be issued at the reporting date .
Equity of company comprises of only two class of shares that are ordinary shares and
reserved shares. Ordinary shares are the shares of company outstanding in market. It comprised
of 11,338,400,000 of ordinary shares of company having valuation of $15,809 million. Reserved
2