Report about Corporate Accounting 2022

Running Head: CORPORATE ACCOUNTING
CORPORATE ACCOUNTING
Name of the Student
Name of the University
Author Note

CORPORATE ACCOUNTING1
Executive Summary
The main objective of this report is to do an analysis of different sources of funds raised by
Wesfarmers and Telstra Ltd. The study is supported by analysing the annual report of both
the companies. The paper will discuss on the assets and liabilities of both the companies with
relevance to the accounting standard of AASB 137. It is found that, the management of both
the companies has efficiently disclosed the elements in the financial statement. The assets and
liabilities are clearly recognised in the annual report.

CORPORATE ACCOUNTING2
Table of Contents
Introduction................................................................................................................................3
Discussions.................................................................................................................................3
Different sources of raising fund by the companies...............................................................3
Evolution of the sources of funds...........................................................................................4
Percentage of the funds..........................................................................................................5
Relative Advantages and drawbacks of the various sources of Funds...................................6
Key provisions under AASB 137.........................................................................................10
Reporting for AAB 137 standard.........................................................................................10
Categories of assets..............................................................................................................12
Measurement Basis for assets..............................................................................................13
Conclusion................................................................................................................................13
References................................................................................................................................14

CORPORATE ACCOUNTING3
Introduction
This report will assess the business operations of Wesfarmers Ltd and Telstra Ltd.
The annual report of both companies is considered to accurately measure their business
performance. The first part of this paper has discussed the different sources of funds raised by
both companies. The next section of the paper has discussed on AASB 137 standard for
contingent liabilities and assets and their relevance in the annual report of both the countries.
The last part of this paper is to evaluate the different types of assets reported in the financial
position statement of both the companies. The main objective of this report is to develop an
understanding of different sources of funds raised by Wesfarmers Ltd and Telstra Ltd.
Discussions
Different sources of raising fund by the companies
Telstra Ltd
Telstra group raise its funds from the following sources:
 Retained Earnings- Telstra group is sourcing its fund from the profits generated by the
business. The dividends from the profits are not distributed among the shareholders
and instead, the company raise its funds from these profits to do business investments.
 Debt capital- Telstra source its funds by raising debts in the form of bonds, short-term
commercial paper, loans, AUD private placements and Finance leases
(Telstra.com.au, 2020). Recently it has issues a 10 year long term debt of EUR bond
of worth $959.
 Equity Capital- Telstra release its company stock to the shareholders. The
shareholders invest their funds in the company stock.
Wesfarmers