Analysis of Financial Terms in Goodman Group Annual Report

Table of Contents
Introduction.................................................................................................................................................2
Content of the project.................................................................................................................................2
Part 1 – Analysis of changes in equity capital.........................................................................................2
Tax expenses stated by the business........................................................................................................4
Tax rates as stated by the business...........................................................................................................4
Deferred tax asset and liabilities..............................................................................................................5
Current tax payable by the management..................................................................................................6
Income tax in cash flow statement...........................................................................................................7
Critical aspects from the annual statements.............................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

Introduction
The main theme of the given project is to read briefly the annual report of a chosen company and
analyse in detail the various financial terms like the equity of the company, tax expenses paid by
the firm to the government, the tax rate applied, status on the deferred tax towards key assets and
liabilities the method implemented by the management in reognising such deferred taxes, if there
is any income tax payable by the company towards the government and to breifly attempt the key
understanding of the financial statements which is presented to the stakeholders. The company
which is considered for this analysis is Goodman group staples. The firms is founded in the year
1929, the firm is mainly involved in real estate which covers the range of large sized warehouse
facilities, logistics aspects, business complext, office parks etc. therefore they are mainly
categorised as the commercial real estate developers. The company was listed in the ASX in
1995, in 2000 there was a merger between the companies of Goodman and Macquaire, in 2007
the company was named as Goodman group and currently it is the largest builders and providers
of industrial property and other commercial spaces for many in the world, the company has
slowly expanded into various countries in Asia, Americas and the Europe. This was achieved
through clear organic growth of the company and the acquisitions. The company owns more than
450 properties in nearly 15 countries, also the company is having nearly 50 properties under
development, the business has generated more than $2 billion annually and the net profits is
nearly $650 million. It should be noted that the Goodman group is split into three different
divisions: Goodman limited, Goodman trust and Goodman logistis, this assignment is focused on
Goodman group which covers all three divisions.
Content of the project
Part 1 – Analysis of changes in equity capital
The first part of the project is to analyse in detail the current capital structure of the company and
to compare with the previous years, the current year is considered as 2017 and the previous year
is stated as 2016.

Based on the annual report of the company it is identified that the total equity of the group is
shown as 8.6 billion in 2017 whereas in the previous year the total equity is stated as 8.3 billion,
which shows that there is an increase of nearly 300 million between the years. The toal equty of
the limited company has reduced due to the increase in the acumulated loss, however the equity
of the trust company and the logistics company has incrased which resulted in increase in the
total equity of Goodman group. (Goodman, 2017)
From the Notes to the annual report 16(a) it is identified that the issued capital of the group
remains the same, with the total issued capital is 8.03 billion and the total number of securities
issued stood at 1.78 billion.
The notes also mentions the meaning of stapled security, which states tha 1 share of stapled
security is a combinatio of 1 unit of shares in Trust company and 1 unit of CDI unit over the
logistics units, the shareholders of the stapled are permitted to get the dividends as declared by
the management and is also entitled to vote in the AGM, during the time of liquidation of the
company, the security holders will get the proceedings at the last. The total equity of the capital
is mainly contributed by the issued capital, reserves of the business unit and the retained earnings
of the firm after distributing the profits to the shareholders.