Corporate Accounting Report - Breville Group Ltd
Added on 2020-05-28
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Running head: CORPORATE ACCOUNTING Corporate AccountingName of the StudentName of the UniversityAuthors NoteCourse ID
CORPORATE ACCOUNTING1Table of ContentsAnswer to question 1:.................................................................................................................2Answer to question 2:.................................................................................................................3Answer to question 3:.................................................................................................................3Answer to question 4:.................................................................................................................5Answer to question 5:.................................................................................................................6Answer to question 6:.................................................................................................................6Answer to question 7:.................................................................................................................7Reference List:...........................................................................................................................9
CORPORATE ACCOUNTING2Answer to question 1:In the balance sheet of the organizations there are three chief items that can beenobserved and one of them is being the Equity. The similar theory is applicable for BrevilleGroup Ltd. On observing the annual report of the Breville Group Ltd for the year ended 2017it was found that there are three main items that is listed in the balance sheet namely theissued capital, reserves and retained earnings (Picker et al. 2016). Organizations makes theuse of the equity shares so that the firm can raise the capital issue business. The annual reportof the Breville Group Ltd represents that the company reported the equity that wasattributable to the equity shareholders of the parent company with issued capital amounting to$140,050 for the year ended 2017 and 2016. The issued capital comprised of the ordinary share that are classified as equity(Breville Group Ltd 2018). On the other hand, the next items that has been reported by thefirm is the Reserves with reserves standing $6,782 in the year 2017 and in the year it stood$4,930 respectively. The nature and purpose of the reserves consisted of the foreign currencytranslation reserve, employee equity benefits reserve and the cash flow hedge reserves.Breville Group Ltd makes the use of the foreign currency translation reserve in order torecord the differences originating from the translation of financial reports of the overseassubsidiaries. The employee equity benefit reserve of Breville Group Ltd is put into use to accountfor the value of equity benefits that is provided to the employees as the part of theirremuneration. The cash flow hedge reserve on the other hand is used to record the amount ofgain or loss made from the hedging instrument in the cash flow hedge which is regarded to bean effective hedge (Nobes 2014). The final item that is reported by Breville Group Ltd under
CORPORATE ACCOUNTING3the heads of equity is the retained earnings that stood $110,885 for the year ended 2016 andin the subsequent year it stood to $126,341. Answer to question 2: There are numerous types of expenditure that is reported by Breville Group Ltd intheir annual report. These expenses are selling, expenses, administrative expenditure, generalexpenditures and other forms expenses (Macve 2015). Besides these expenditure, BrevilleGroup Ltd reported tax expenditure which is considered to be one of the vital expenditure ofthe company. similarly, these tax expenditure forms the chief liability for Breville Group Ltdto the state and civic government of Australia. Breville Group Ltd computes the taxexpenditure by multiplying the business tax from the earnings of the company following thefactorization of the components such as current income tax charge and adjustment in regardto the current income tax of the earlier years (Zhang and Andrew 2014). Breville Group Ltd performs the reconciliation between the tax expenditure and theproduct of accounting profit before the income tax is multiplied by the parent company withthe applicable income tax rate (Breville Group Ltd 2018). Taking into the considerations theannual report of the Breville Group Ltd company has reported the tax expenditure of $21,347for the year ended 2016 while in the following year of 2017 the company reported the incometax expenditure of $23,389 respectively in its income statement. Answer to question 3: As evident from the above stated discussion the income tax expenditure that isreported by the company is greater in the year 2017 than the figures reported by the firm inthe year 2016. The income tax expenditure for the year ended 2016 stood $21,347 while inthe subsequent year of 2017 the income tax expenditure reported by the firm in its incomestatement has increased to $23,839 subsequently (Breville Group Ltd 2018). In addition to
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