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Corporate Accounting Assignment - Abacus Property Group and LandMark White Limited

   

Added on  2020-11-23

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Corporate Accounting

EXECUTIVE SUMMARYThis report contains information about corporate accounting which is used to create andanalyse the financial statement of a company which can be either a business entity or lawfulbusiness. In this project, description about companies which are selected is mentioned along withtheir equity items and cash flow items. It also describes about the importance of financialstatement of a company. By using financial statements one can identify the debt as well as equityposition of the company. It also help in identifying the amount of cash inflow and cash outflowstransactions performed by an organisation throughout the year. Further using financial statementtax expenses can also be listed which includes current tax liabilities.

INTRODUCTIONCorporate accounting is that branch of accounting which is focused to preparation offinancial statements of companies. These corporations include any business entity which runs alawful business. In this project report, two companies are chosen in order to better understandthis topic. These companies are Abacus Property Group and LandMark White Limited. Both ofthese companies operates in real estate industry and deals with property construction. In thisproject report, annual reports of these two organisations are analysed and interpreted with theaim of ascertaining their equity and debt position, cash flow performance and taxation positionof the organisation. Financial reports and accounts which are prepared by the accountants of acompany includes income statement, balance sheet and cash flow which are further analysed bymanagement of the company (Bennett, 2013).TASK 1: OWNERS EQUITYListing equity items and their changesOwner's equity is the amount of investment which is contributed by the owner in thebusiness. Owner's equity of an organisation can be ascertained by deducting the total assets fromtotal liabilities. Changes in equity items is mentioned below of the past three years:Issued capital – This capital is the amount or value which is obtained through sale ofcompany's shares. When a company issues shares and earn a amount from it, that value is knownas issued capital (Epstein, 2018). In the case of LandMark White Limited, issued capital is inincreasing trend. In the year of 2015, this capital was amounting 6008000, 6050000 in 2016 and33773000 dollars in 2017. Reason of this change is fluctuations in the share price and issuance ofshares by the company every year. According to the annual reports of Abacus Property Group,shares amounting 1581156 issued in the year of 2017, 1523878 in 2016 and 1514015 in 2015.From this data it can be said that this company is consistent when it comes to share capitalbecause of issuing a similar number of shares every year. Reserves – These are the funds which are reserved by the company in order to save themfor future contingencies and plans (Reserves, 2018). The amount in reserves is considered as thenet worth of the organisation which is earned from the sale of shares. In the case of LandMarkWhite Limited, there are no reserves in the year of 2017. But in the year of 2016 and 2015,company managed to save a amount in reserves and the value of these reserve were recorded as1

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