Assessing Financial Position of Australian Oil, Gas, and Energy Companies: Corporate Accounting Study

Running head: CORPORATE ACCOUNTING
Corporate Accounting
Name of the Student
Name of the University
Authors Note
Course ID

1CORPORATE ACCOUNTING
Executive Summary:
The study proposes to assess the financial position of businesses relating to oil, gas and
energy industry of Australia. In order to perform the assessment, the three entities selected
are 3D Oil Limited, Hawkley Oil and Gas Limited and Helios Energy Limited. The identified
components of cash flow statement are based on evaluating net cash from operating activities,
investment activities and financing activities. The balance sheet items are evaluated with
equity, debt and liabilities. The overall findings of the report show that as the companies
belong to same industry that items listed under income statement and cash flow statement are
similar in nature. However, it is to be noted that as the businesses are incurring losses, they
have been excluded from the purview of corporate income tax. The taxation law of Australia
recognises the companies with the possibility of including business losses. This allows such
business entities to carry forward and recoup the losses for taxation purpose against
subsequent profits.

2CORPORATE ACCOUNTING
Table of Contents
Introduction:...............................................................................................................................4
Equity and Liability....................................................................................................................5
Answer to Requirement [i].....................................................................................................5
Answer to Requirement [ii]:...................................................................................................6
Answer to Requirement [iii]...................................................................................................7
Cash Flows Statement................................................................................................................8
Answer to Requirement [iv]...................................................................................................8
Answer to Requirement [v]....................................................................................................9
Answer to Requirement [vi]:................................................................................................12
Other Comprehensive Income Statement.................................................................................13
Answer to Requirement [vii]:...............................................................................................13
Answer to Requirement [viii]...............................................................................................14
Answer to Requirement [ix]:................................................................................................14
Answer to Requirement [x]..................................................................................................14
Accounting for Corporate Income Tax....................................................................................15
Answer to Requirement [xi].................................................................................................15
Answer to Requirement [xii]................................................................................................15
Answer to Requirement [xiii]:.............................................................................................16
Answer to Requirement [xiv]...............................................................................................16
Answer to Requirement [xv]................................................................................................17
Answer to Requirement [xvi]...............................................................................................17
Answer to Requirement [xvii]..............................................................................................17
References................................................................................................................................19

3CORPORATE ACCOUNTING
Introduction:
The report aims to provide a complete assessment of financial standing of three ASX
listed entities which are operating in the sector of oil, gass and energy industry of Australia.
For the purpose of the study, the three entities selected are 3D Oil Limited, Hawkley Oil and
Gas Limited and Helios Energy Limited. The overall assessment will provide a vivid
description of analysis pertaining to financial areas such as corporate income tax, corporate
cash tax, cash flow statement and balance sheet.
3D Oil is recognised to combine corporate strategy of both technical and commercial
importance in the segment of oil exploration in “Gippsland and Otway Basins of South East
Australia”. The exploration in this area has been recognised with an award-winning T/49P
exploration permit. 3D Oil also holds more than 24.9% high prospective VIC/P57 exploration
permit for Sea Lion prospect which consists of resources worth 11 million barrels of oil
(3Doil.com.au 2019).
Hawkley Oil and Gas Limited made its debut on an ASX on 29 June 2010 after
takeover from Incitive Limited which is identified as the former biotechnology company. In
the same year the company drilled its first well as per the license of Sorochynska. Eventually,
Sorochynska-201 was successful and was seen to be in production from February 2011 until
December 2014. On September 2012, Hawkley Oil and Gas completed its second well named
Sorochynska-202 (Hawkleyoilandgas.com 2019).
Helios Energy Limited is a service company which provides end-to-end solution to
the clients for providing clean energy solutions. The main goal of the company is based on
optimising clean energy, thereby assisting the companies to reduce energy expenses and
minimise carbon footprint. The full services offered includes conducting audit on current