Corporate Accounting: Equity and Liability Items and Movements

Corporate Accounting 1
CORPORATE ACCOUNTING
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Corporate Accounting 2
Abstract
The discussion is section in part A and B. The first part (A) analyzes the items listed in
equity and liability section of the Annual Reports of BHP Billiton, Adelaide Brighton Limited
and Rio Tinton Limited. All the listed items are explained and their changes or movements are
also discussed. In part B, the concepts of small proprietary company, large proprietary company
and reporting are discussed along with the implication of being classified in either one of the
three concepts.

Corporate Accounting 3
Table of Contents
Abstract............................................................................................................................................2
Introduction......................................................................................................................................4
Equity and Liability Items and Movements.....................................................................................5
Equity Items:................................................................................................................................5
Explanation of Items Listed in Equity:.....................................................................................6
Movement of equity Items:......................................................................................................7
Liability Items..............................................................................................................................8
Explanation of Items in Liability............................................................................................11
Movement in items Liability..................................................................................................13
Advantages of Sources of Finance.............................................................................................13
Part B: Concepts of Large Proprietary Company; Small Proprietary Company; and Reporting
Entity and Implication of Classification........................................................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
Introduction

Corporate Accounting 4
The companies chosen for this discussion are BHP Billiton, Adelaide Brighton Limited
and Rio Tinto. BHP Billiton Limited has emerged as the one of the biggest mining and metal
firms in Australia in the last three decades. BHP Limited has since spread operation in four
continents and has big mining operations encompassing Aluminum, Steel and Copper among
others. BHO also happens to be one of the largest employers in Australia with more than 65000
workers and also making substantial amount of EBIT every year. Nonetheless, the rates of
growth in BP alongside profitability has suffered in the last recent years due to the fierce
competition in the current times as well as due to the global slowdown in building and
construction industry. Beginning the FY 2013, the BHO has been healed significantly by
Andrew McKenzie. In the period 2016-17, nonetheless, BHP went back to remarkable growth
levels.
Rio Tinto happens to be the largest competitor for BHP. Rio Tinto firm was established
in the year 1873 and since then, it has spread its wings significantly to cover a global
perspective. Like BHP, Rio Tinto has also spread its operations in four continents which involve
copper, aluminum and steel among other. The Rio Tinto is also a bigger employer in Australia
with more than 52,000 workers and makes substantial EBIT levels every year. In the last
financial year, Rio Tinto realized a revenue of 40B USD and accomplished a remarkable EBIT
of 14B dollars. The asset of Rio Tinto as at June 30th 2018 stood was much in excess of 100B
dollars.
Adelaide Brighton Limited is a firm dealing in integrated construction materials which
include lime. The major activities of this firm encompasses constriction and infrastructure
alongside processing of minerals. The firm further deals in clinker production alongside
distribution, industrial use limes, cements as well as premixed concrete among others. It is listed