Cash Flow Categories: 5 Analysis of Other Comprehensive Income Statement

Running head: CORPORATE ACCOUNTING
Corporate Accounting
Name of the Student
Name of the University
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CORPORATE ACCOUNTING1
Table of Contents
Introduction:...............................................................................................................................2
Cash Flow Statement:................................................................................................................2
List of Each Items reported in Statement of Cash Flow........................................................2
Comparative analysis of cash flow categories:......................................................................4
Analysis of Other Comprehensive Income Statement:..............................................................5
Items reported in other comprehensive income statement:....................................................5
Understanding of items reported in other comprehensive income statement:.......................5
Reasons for not reporting items in the income statement:.....................................................6
Accounting for Corporate Income Tax:.....................................................................................6
Firms tax expenses in the latest financial statement:.............................................................6
Tax rate times for company’s accounting income:................................................................6
Deferred tax assets/liabilities:................................................................................................7
Current tax assets:..................................................................................................................7
Income tax expenses on income statement and tax paid on cash flow statement:.................8
Overall understanding of the firm’s financial statement:.......................................................8
Conclusion:................................................................................................................................8
Reference List:...........................................................................................................................9

CORPORATE ACCOUNTING2
Introduction:
The current report is based on the understanding of the corporate reporting
environment of BHP Billiton. The report would be carefully analysing the financial
statements of BHP Billiton over the period of three years. Initially a cash flow statement
analysis will be conducted where each items reported in the cash flow statement of the BHP
Billiton reported in the cash flow statement would be discussed along with the depiction of
changes in the items of cash flow statement. A comparative analysis of operating investing
and financing activities would be conducted for a period of three years.
An analysis of items reported by BHP Billiton in the other comprehensive income
statement would be discussed and the reason for not including the items in the profit and loss
statement. The report would be placing emphasis on the accounting for corporate income tax
by understanding the BHP Billiton tax expenditure, deferred tax assets, current tax assets and
income tax expenditure along with the differences in figures reported.
Cash Flow Statement:
List of Each Items reported in Statement of Cash Flow
As evident from the cash flow statement under the operating activities BHP Billiton
reported profit before tax originating from continuous operations (Scott, 2015). The profit
before taxation represents the profitability measures that considers the profit of BHP Billiton
prior to the payment of any corporate income taxes by subtracting all the expenditure from
the revenues along with the interest expenditure and operating expenditure except the income
tax (BHP Billiton, 2018). The continuing operations for BHP Billiton represents the net
income class in the profit and loss statement that amounts to BHP Billiton daily business
activities.

CORPORATE ACCOUNTING3
Under the operating activities BHP Billiton reported certain adjustment prior to
taxation. This includes the non-cash items of exceptional nature, expenditure related to
depreciation and amortization, impairments conducted on PPE, intangible and the financial
assets (Schaltegger & Burritt, (2017). Further expenditure include net finance costs and share
relating to operating profit of equity accounted investments. BHP Billiton reported a changes
in the assets and liabilities under the operating activities (BHP Billiton, 2018). The changes
included in the areas of trade and other receivables, inventories, trade and other payables
along with the provision on assets and liabilities.
Cash flow from the investing activities represents the items on the statement of cash
flow that reports the aggregate changes in the company’s position of cash originating from
the gains made from investment in the monetary markets together with operating subsidiaries
and changes that results from the sum spend on capital assets investments (Williams, 2014).
The investing activities of BHP Billiton included the purchase of PPE, expenditure on
exploration, the expense of exploration spending that is included in the operating cash flow.
The items listed in the investing activities also included net investment in the accounted
investments along with the proceeds from assets, divestment of subsidiaries and joint
operations (BHP Billiton, 2018). Under the investing activities, BHP Billiton reported net
investing cash flows from the discontinued operations.
The cash flow from the financing activities includes the cash flow from the
organizations cash flow statement that amounts to external activities that enables a company
to raise capital (Warren & Jones, 2018). Apart from raising capital the financing activities
also comprises of the repayment of investors, adding or changing loans or issue of stocks.
BHP Billiton cash flow from financing activities include the proceeds that are derive from the
interest bearing liabilities. It also includes proceeds originating from debt instrument,
repayment of the interest bearing loans, proceeds originated from the ordinary shares,