Assignment on Corporate Accounting (Docs)

CORPORATE
ACCOUNTING

Executive Summary
This report is presenting comparison of Financial Statements of two companies, Flight
Centre Travel Limited and Webjet Limited. These both companies are involved in travel and
tourism business. This report presents different items of Balance sheets, comparison of
borrowings with owner’s funds, benefits and uses of cash flow statements, comparison of cash
tax with book tax amount.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Owners’ Equity................................................................................................................................1
(i)The Items of Equity listed in Financial Statements and understanding of both companies-:. 1
The statement of changes in equity of both companies are given below-:.............................2
(ii) Comparative Analysis of Debt and Equity Position........................................................2
Cash Flow Statement.......................................................................................................................3
(iii)List of items of Cash Flow Statements.............................................................................3
(iv)Comparative analysis of three activities of Cash Flow Statements for past three years-: 4
(v)Comparative Analysis of Cash Flow Statements of both companies................................5
OTHER COMPREHENSIVE INCOME STATEMENTS..............................................................6
(vi)Items that are needed to report In Comprehensive Income Statements............................6
(vii)Stating reasons for items of Comprehensive Income statements are not recorded in P&L 6
(viii)Comparative Analysis of Other Comprehensive Income Statements............................7
(ix)Evaluation with Inclusion of Items of Comprehensive Income Statements.....................7
Accounting for Corporate Income Tax............................................................................................8
(x)The Tax expenses that are shown in both of companies for current year-:.......................8
(xi)Calculation of Effective tax rate for both companies.......................................................8
(xii)Stating Reasons why Deferred tax Assets and Liabilities occurs....................................8
(xiii)There was increase in Deferred Tax Assets reported from last years for both of
companies-:.............................................................................................................................9
(xiv)Calculation of Cash tax amount by using book tax amount with help of Deferred Tax
Liability and Deferred Tax Assets given in Balance sheets of both companies..................10
(xv)Calculation of cash tax rate of both companies that are calculated after adjustment of
DTA are-:..............................................................................................................................11
(xvi)Reasons stating difference in Tax rate and Book Rate.................................................11

CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13