Corporate And Financial Accounting Assignment 2022

Running head: CORPORATE AND FINANCIAL ACCOUNTING
CORPORATE AND FINANCIAL ACCOUNTING
Name of the Student
Name of the University
Author Note

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CORPORATE AND FINANCIAL ACCOUNTING
Table of Contents
Introduction................................................................................................................................4
Overview of the Company.........................................................................................................4
Part A.........................................................................................................................................4
Analysis of Company Equity Section....................................................................................4
The amount is shown in the Equity Section...........................................................................6
Analysis of Liability Section of the Company.......................................................................7
Amount Shown in Liability Section.......................................................................................9
Source of Fund.....................................................................................................................10
Part B........................................................................................................................................11
Conclusion................................................................................................................................12
Reference..................................................................................................................................13

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Introduction
Corporate Accounting is a branch of accounting which handles accounting related to
companies as it prepares all the financial report that the entity has to prepare following
different accounting standard (Ball et al., 2019). These also help the entity to value the firm
in case of merger and acquisition. Corporate accounting assists the entity in recording all the
daily transaction as well as to do the optimum utilisation of capital in their business. The
report is based upon two companies and shows their financial aspects, and it shows the
analysis of the entity equity and liability section and how the company can manage their
business activities in the industry (Ball et al., 2019). It also describes the source of fund
which is used by the entity to carry their business operations. It also shows the different form
of business and how the compliance of that business can affect an overall entity performance.
Overview of the Company
Bega Cheese is an Australian based Dairy company, and the company carry its
operation in Australia and New Zealand. The company has it headquarter in Bega, New
South Wales, Australia. The company is considered to be one of the largest companies in the
dairy industry, and it deals in products such as cheese and powdered milk.
Beston Global Food Company which is an Australian based Dairy Company and carry
its business in Australia. It is the 7th largest diary company in Australia and deals in all types
of dairy products.
Part A
Analysis of Company Equity Section
Bega Cheese Limited
The items listed in entity equity section are:

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2018 2017 2016
Share Capital Share Capital Share Capital
Reserves Reserves Reserves
Retained Earnings Retained Earnings Retained Earnings
(Source - Annualreports.com 2019)
Share Capital – The amount of money which the entity gets from the issue of share to
ordinary public (Barker 2019). The amount of share capital change time to time due to the
issue of more amount of share in the business.
Reserves - Company earn a sum of profit by carrying different activities in the business and
from the part of that profit it keeps aside portion which termed as reserves (Christensen
2019). This reserve helps the entity to over the uncertainty situation in the business.
Retained Earnings – Retained Earnings is the amount which left in the business after all the
payment made to the shareholders (Dumitrescu 2019). The amount of retained earning
signifies that the entity is having the proper amount of business in the industry.
Beston Global Food Company Limited
The equity section of the entity is shown below:
2018 2017 2016
Contributed Equity Contributed Equity Contributed Equity
Other Reserves Other Reserves Other Reserves
Accumulated losses Accumulated losses Accumulated losses
Non-Controlling Interest Non-Controlling Interest Non-Controlling Interest

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(Source: Bestonglobalfoods.com.au 2019)
Accumulated Loss is the negative amount of retained earnings (García Muñoz, de Lope and
Palomar 2019). This account balance arises due to increase of loss over the number of
cumulative profits, as this signifies that the entity is not having proper financial stability in
their business.
Non-Controlling Interest signifies the shareholder position in the business as its show about
minority interest of the shareholders who holds less than 50% of the outstanding share and
has no control over the decision in the entity.
The amount is shown in the Equity Section
Bega Cheese Limited
Particulars 2018 2017 2016
Share Capital 274862 22469
2
103942
Reserves 21466 21656 21058
Retained Earnings 335663 32632
6
202838
(Source - Annualreports.com 2019)
There is an increase in the share capital of the entity which denotes that the company has
come up with issue of share capital and which denotes that it able to expand its business
operation in the industry (Annualreports.com 2019). There is no significant change in the
reserves which implied that the entity is not having any transfer of profit in the business. The
amount in Retained Earning has also been increasing in current year that signifies that the

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entity is earning right amount of profit as a result of which can transfer some amount of profit
in their retained earning account.
Beston Global Food Company Limited
Particulars 2018 2017 2016
Contributed Equity 147535 147535 113472
Other Reserves (237) (482) 5569
Accumulated losses (26192
)
(13598) (2819)
Non-Controlling Interest 186 685 943
(Source: Bestonglobalfoods.com.au 2019)
The above table shows that there is no change in contributed equity which signifies that the
entity has not come up with issue of share capital (Bestonglobalfoods.com.au 2019). The
entity has a decrease in their reserve which is not a good symbol as the entity is not having
proper amount of profit and due to which its reserves have become negative. The amount of
non- controlling interest has been decreased, which signify the entity has a decrease in the
minority interest in their business activities.
Analysis of Liability Section of the Company
Bega Cheese Limited
2018 2017 2016
Current Liability Current Liability Current Liability
Trade and other payable Trade and other payable Trade and other payable
Derivative Financial Derivative Financial Derivative Financial

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Instrument Instrument Instrument
Borrowing Borrowing Borrowing
Current Tax Liability Current Tax Liability Current Tax Liability
Provision Provision Provision
Non- Current Liability Non- Current Liability Non- Current Liability
Borrowing Borrowing Borrowing
Provision Provision Provision
Deferred Tax Liability
(Source - Annualreports.com 2019)
Trade and other payable shows the amount which the entity has to pay to its suppliers, from
which it purchases the raw material and necessary material that are required by entity to carry
its business activities (Hassan and Marston 2019). Borrowing refers to the amount of loan
which the entity has borrowed to carry its business activities. The entity has to pay certain
amount of interest upon the borrowing amount, and it let the entity to expand its business
operation quickly in the industry. Deferred Tax Liability denotes the future tax payment
which the entity has to make to different regulators. These implied the future tax liability
which the entity has to bear in its upcoming future events.
Beston Global Food Company Limited
2018 2017 2016
Current Liability Current Liability Current Liability
Trade and other payable Trade and other payable Trade and other payable
Borrowing Borrowing
Current Tax Liability Current Tax Liability Current Tax Liability

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Employee Benefit
Obligations
Employee Benefit
Obligations
Employee Benefit
Obligations
Non- Current Liability Non- Current Liability Non- Current Liability
Deferred Tax Liability Deferred Tax Liability Deferred Tax Liability
Employee Benefit
Obligation
Employee Benefit
Obligation
Employee Benefit
Obligation
(Source: Bestonglobalfoods.com.au 2019)
Employee Benefit Obligation is a type of pension concept in which the entity carries their
employee pension scheme. Deferred Tax Liability states the amount of future tax payment
which the entity has to pay to the different tax authorities. This help the entity to know the
amount of tax amount which it has to pay in coming future events.
Amount Shown in Liability Section
Bega Cheese Limited
Particulars 2018 2017 2016
Current Liability
Trade and other payable 225910 169324 156044
Derivative Financial Instrument 2018 408 1583
Borrowing 121 64 15235
Current Tax Liability 6737 63911 5056
Provision 43405 32877 31335
Non- Current Liability
Borrowing 266982 215280 47500

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Provision 1784 1722 2083
Deferred Tax Liability 36868
(Source - Annualreports.com 2019)
There is an increase in trade and other payable which signify that the entity purchased more
amount of raw material from the suppliers as well as it able to carry proper amount of
business in the industry. The entity has increased its provision amount that denotes it has
become more conservative in regards to its debtor and due to which it has transfer more
amount to the provision account.
Beston Global Food Company Limited
Particulars 2018 2017 2016
Current Liability
Trade and other payable 14027 9818 8705
Borrowing 21444 0
Current Tax Liability 45 0 875
Employee Benefit
Obligations
230 137 50
Non- Current Liability
Deferred Tax Liability 1576 2189 725
Employee Benefit Obligation 70 25 7
(Source: Bestonglobalfoods.com.au 2019)

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The increase in trade payable denotes that the entity has carried more amount of activities due
to which the liability has increased in their financial statement. The entity has an increase in
borrowing, which signify that it has diversified its resource to gather more amount of
business in the market. Employee benefit Obligation has increased in current year, so this
shows that the number of employees has increased in the business. Due to the increase of
employee the overall benefit has been increased in the business.
Source of Fund
Bega Cheese can have a proper amount of capital, and it has used both the equity and
debt to carry its different business objectives (Hernádi 2019). The company can a proper
debt-equity ratio, which denotes that the entity is having financial stability in the business.
Beston Global Food Company Limited is having a proper amount of equity and debt
in its financial statement. It contains a proper capital structure as the combination of debt and
equity is appropriately managed by the entity.
Part B
Small Proprietary company is a kind of private limited company and to become a
small proprietary an entity should able to comply with any of the two mentioned limits as:
 The revenue of the entity in the financial year is less than $50 million
 The amount of gross asset held by the entity in the closing financial year is less than
$25 million (Hutagaol-Martowidjojo, Joachim and Anggraeni 2019).
 The entity should have less than 50 employees in the business
The benefit of being this form of company is that they have to follow less amount of
requirement in comparison to different form of business (Khurana and Wang 2019). They do
not have to carry audit procedure in their business activities which help them to minimise the
overall cost in the business.

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Large Proprietary Company is not a public limited company, and the entity can become a
large proprietary company only when it satisfies all the criteria mentioned below:
 The overall revenue of the entity should be more than $50 million
 An entity should have more than $25 million in their gross asset at the end of
accounting year (Patten and Shin 2019).
 The overall employee in the entity business should be more than 50.
The company have to prepare all the financial report that laid Infront of the shareholders, and
it should get its financial statement audited as per the rules and regulation mentioned in the
provision. These help the entity to provide proper amount of information to its users.
Reporting Entity is the entity which prepares their financial statement in regards to the norms
and regulation laid in accounting standards. All the financial report should make following
General-Purpose Financial Reporting (Penela, Estevão and Gregory 2019). These help the
users to have proper understandability of the entity business and assists them in taking proper
decision regarding investment in the entity as the entity is following all the accounting
standard in the preparation of its financial report which reduces the risk of material
misstatement in the entity operations.
Conclusion
It can conclude from the above discussion that corporate accounting helps the entity
to prepare their financial report and able to present the same to its shareholder and other
users. The valuation of firm can only do with the help of corporate accounting method in the
business. The report shows the two dairy company that is in listed in ASX. It shows the
equity and liability section of the company and also describes the changes that have occurred
in the equity and liability of the company. The source of fund which is taken by the entity to
carry its business activities has also discussed in above paragraphs. A detailed analysis has

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done in regards to the different form of business such as small proprietary, large proprietary
and reporting entity. It also explains the consequences which the entity has to face regarding
each form of business.

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Reference
Annualreports.com (2019). [online] Annualreports.com. Available at:
http://www.annualreports.com/HostedData/AnnualReportArchive/b/ASX_BGA_2016.pdf
[Accessed 28 Sep. 2019].
Ball, R., Gerakos, J., Linnainmaa, J.T. and Nikolaev, V., 2019. Earnings, retained earnings,
and book-to-market in the cross section of expected returns. Journal of Financial Economics.
Ball, R., Gerakos, J., Linnainmaa, T. and Nikolaev, V., 2019. Book-to-market, retained
earnings, and earnings in the cross section of stock returns. Journal of Financial Economics.
[In Press]. http://dx. doi. org/10.2139/ssrn, 2924798.
Barker, R., 2019. Corporate natural capital accounting. Oxford Review of Economic
Policy, 35(1), pp.68-87.
Bestonglobalfoods.com.au (2019). [online] Bestonglobalfoods.com.au. Available at:
https://bestonglobalfoods.com.au/app/uploads/2018/12/20161021-2016-Annual-Report.pdf
[Accessed 28 Sep. 2019].
Christensen, J., 2019. Corporate choice and individual values: using accounting to align
incentives. Business Research, 12(1), pp.95-114.
Dumitrescu, A., 2019. Retained Earnings, Interest Rates and Lending Relationship. The BE
Journal of Theoretical Economics, 19(1).
García Muñoz, L.M., de Lope, F. and Palomar, J.E., 2019. A Retained Earnings‐Consistent
KVA Approach and the Impact of Taxes. Wilmott, 2019(101), pp.62-69.
Hassan, O.A. and Marston, C., 2019. Corporate Financial Disclosure Measurement in the
Empirical Accounting Literature: A Review Article. The International Journal of
Accounting, 54(02), p.1950006.

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Hernádi, B.H., 2019. Green Accounting for Corporate Sustainability.
Hutagaol-Martowidjojo, Y., Joachim, H. and Anggraeni, D., 2019. The role of earnings and
tax on dividend policy of Indonesian listed firms. Jurnal Keuangan dan Perbankan, 23(1),
pp.29-42.
Khurana, I.K. and Wang, W., 2019. International Mergers and Acquisitions Laws, the Market
for Corporate Control, and Accounting Conservatism. Journal of Accounting
Research, 57(1), pp.241-290.
Patten, D.M. and Shin, H., 2019. Sustainability accounting, management and policy journal’s
contributions to corporate social responsibility disclosure research: a review and
assessment. Sustainability Accounting, Management and Policy Journal, 10(1), pp.26-40.
Penela, D., Estevão, J. and Gregory, A., 2019. Accounting and financial antecedents of
corporate spin-offs in the lodging industry. International Journal of Hospitality
Management, 83, pp.151-158.