Analysis of Taxation Provisions in Lend-lease Group for Equity and Tax-related Factors

HI5020 Corporate accounting
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Table of Contents
Introduction......................................................................................................................................3
Question 1....................................................................................................................................4
Question 2....................................................................................................................................5
Question 3....................................................................................................................................6
Question 4....................................................................................................................................7
Question 5....................................................................................................................................8
Question 6....................................................................................................................................9
Question 7..................................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
In the global economy, there are various such aspects which are to take into consideration in the
process of accounting. This is essential so that all the issues can be dealt in a proper manner
which is faced by the company. In the given report all the provisions which are being followed in
respect of taxation will be discussed in the context of Lend-lease group. Firstly the several
elements of equity will be described and then the tax-related factors such various types of taxes
which are to be recorded will be explained. The change which will be noted in the evaluation
shall be reported and together with this, reasons because of which they are arising will also be
mentioned. All of this information will help the company as they will be used for further
reference.
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Question 1
In the statement of financial position, there are various factors which are included and one
among them is equity. This is the amount which is owned by the business and is held to be used
for its benefit. In this various components are involved and it is necessary that an understanding
of them shall be gained which is provided hereunder:
Issued capital: Companies raise funds through issuing equity shares. The accumulated amount
is known as issued capital. In lend-lease, the amount which is available with this is 1289.8. On
this amount, dividend will have to be paid by the company and also this will provide the
investors with voting rights (Baker & Xuan, 2016). There is the change which has been noted in
this amount and that is due to distribution reinvestment plan.
Treasury securities: These are some of the securities which are acquired by the company and
the amount which is included in respect of it amounts to (24.7). These are the securities of
government. The change is due to the transactions which are made in respect of them in the
current year.
Reserves: There are several activities which are undertaken and are some amount is allocated for
a particular project or task, then that is known as a reserve. It will have to be used for that
purpose only. In the given case total value of it is (5.3). The categories which are made in this
regard are fair value revaluation reserve, hedging reserve, and foreign currency translation
reserves. All the movements which took place and hedge transactions are taken into account.
Retained earnings: An amount which is kept by business for the future use of the profits which
are made in the current year are known as retained earnings. 3686.6 is the amount which is
recognized by lens lease for the current year. There is the profits which have been added and
distribution made in respect of dividend has been deducted from the last year balance to arrive at
this value.
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