BHP Billiton Company: Corporate Accounting

BHP Billiton Company
Corporate Accounting
Name of the Author:
Table of Contents

INTRODUCTION......................................................................................................................1
ANSWER TO QUESTION NO- 1............................................................................................1
ANALYSING INFORMATION PRESENT IN CASH FLOW STATEMENT.......................1
ANSWER TO QUESTION NO- 2............................................................................................1
OPERATING, INVESTING AND FINANCING ACTIVITIES: A SUMMARISED
EXPLAINATION......................................................................................................................1
ANSWER TO QUESTION NO- 3............................................................................................2
ITEMS REPORTED IN OTHER COMPREHENSIVE INCOME STATEMENT..................2
ANSWER TO QUESTION NO- (iv).........................................................................................2
UNDERSTANDING OF EACH ITEM REPORTED IN OTHER COMPREHENSIVE
INCOME STATEMENT...........................................................................................................2
ANSWER TO QUESTION NO- (v)..........................................................................................3
REASON OF NON-REPORTING OF THESE ITEMS IN STATEMENT OF PROFIT AND
LOSS..........................................................................................................................................3
ANSWER TO QUESTION NO- (vi).........................................................................................3
TAX EXPENSE OF BHP BILLITON.......................................................................................3
ANSWER TO QUESTION NO- (vii)........................................................................................3
IS THE FIGURE OF TAX EXPENSE SAME AS ACCOUNTING INCOME MULTIPLIED
BY BHP BILLITON’S EFFECTIVE TAX RATE?..................................................................3
ANSWER TO QUESTION NO- (viii)......................................................................................4
COMMENT ON DEFERRED TAX ASSET OR LIABILITY.................................................4
ANSWER TO QUESTION NO- (ix).........................................................................................4
IS CURRENT TAX ASSET SAME AS INCOME TAX EXPENSE?......................................4

ANSWER TO QUESTION NO- (x)..........................................................................................5
IS THE INCOME TAX EXPENSE SAME AS INCOME TAX PAID?...................................5
ANSWER TO QUESTION NO- (xi).........................................................................................5

INTRODUCTION
With the increasing taxation complexity and compliance framework of the company
for preparing the financial statement has been becoming complex throughout the time. In this
report, BHP Billiton Company has been selected to prepare this report. This company is
having it’s headquarter in Melbourne, Australia and indulged in operating the iron, Silver,
steel and copper busienss around the globe.
ANSWER TO QUESTION NO- 1
ANALYSING INFORMATION PRESENT IN CASH FLOW STATEMENT
The cash flow statement is the statement which reflects the inflow and outflow in the present
year irrespective of the fact that whether it belongs to the current year or not. The cash flow
statement is accompanied with the three main activities such as operating activities’,
investing activities and financial activities (Wang, Butterfield, and Campbell, 2016).
The cash inflow from the operating activities has been dominated by the dividend received
amount. There are several expenses have been recorded in the operating activities such as
interest, net taxation, and other operating items. The dividend received of the BHP Billion
has been US $ 636 million in financial year 207 which is 18% higher as compared to last year
data. The financial activities shows the reduction in its cash flow due to the decrease in its
dividend payment to US $ 4130 in 2017 (Ladas, Negkakis, and Samara, 2017).
ANSWER TO QUESTION NO- 2
OPERATING, INVESTING AND FINANCING ACTIVITIES: A SUMMARISED
EXPLAINATION
US$ IN MILLION 2016-17 2015-16 2014-15
Net cash provided or used by operating
activities
16,804 10,625 19,296
Net cash provided or used in investing (4,161) (7,245) (13,154)