Corporate Accounting: A Comprehensive Analysis of Caltex Australia Limited's Financial Statements

Corporate accounting

Table of Contents
1: Cash flow statement:...............................................................................................................3
2: Comparative statement of 2017, 2016 and 2015:....................................................................5
3: Statement of Comprehensive income:.....................................................................................7
4: Description of items of comprehensive statements:................................................................7
5: why comprehensive items not included in profit and loss account:........................................8
6: Tax expenses of company:......................................................................................................8
7: Is this figure the same as the company tax rate times your firm’s accounting income?
Explain why this is, or is not, the case for your firm...................................................................9
8: Comment on deferred tax assets/liabilities that are reported on the balance sheet articulating
the possible reasons why they have been recorded.....................................................................9
9: Is there any current tax assets or income tax payable recorded by your company? Why is the
income tax payable not the same as income tax expense?..........................................................9
10: Is the income tax expense shown in the income statement same as the income tax paid
shown in the cash flow statement? If not why is the difference?..............................................10
11: Interesting fact of accounting policy...................................................................................10

1: Cash flow statement:
Cash flow from operating activities:
Customers Receipts: Receipts from customer denotes the amount which is received against the
credit sales or as advance payment form the debtors of the company. The receipt from customers
is more than 2016 in 2017 which denotes the soundness of credit policy of the company.
Payments made to supplier, employee and government: the amount which is paid to the creditors
for their supply of goods, company staff for their services and governing authority for different
reasons is included in this section. This amount is also more than the previous year.
Shares acquired for vesting employee benefits: This term states the amount which is paid by the
company for purchasing the shares under employee stock benefit scheme. Under ESOP plan, the
company provides an option to its employees to purchase company shares at low prices after the
completion of a certain time of service (Madineh, et. al., 2017).
Interest received: Interest received stands for the amount which is received against the loans
provided by the company to external parties. It is an income for the company and contributes to
improving the liquidity.
Finance costs and Interest paid: interest is payable on those loans which are borrowed by the
company from the external market. It is a cost for the company and should be paid without
considering the profitability of the company. The company paid fewer amounts in 2017 in the
comparison with 2016 which denotes that some funds are repaid by the company during the year.
Income Tax Paid: Income tax is a liability for the company and should be paid timely to avoid
the legal penalties. It is an expense and a legal obligation to the company and such obligation
generates an outflow of funds. Tax paid in 2016 and tax paid in 2017 has the high difference and
the same can be arising due to deferred tax assets or sales.
Cash flows from investing activities:
Purchase of investment: When a company purchase investments to gain some profits from its
extra funds, this out arises. Company purchase some investments in 2016 and but no investment
is purchased during 2017.

Purchases of businesses: This term stands for the amount which paid the company for purchasing
a business. This can be done through the merger, amalgamation or business purchase
combination. The amount to acquire the business, which is paid by the company as a cash
payment is included here.
Purchases of property, Equipment and plant: This term represents the amount which is paid by
the company to acquire the fix assets. Equipment and plant are purchased to support the
production process and property can be purchased for investment and business use purpose.
Major payment cyclical maintenance: this term marks the amount which is paid for the timely
maintenance of assets and plants. It is an expense for the company and generates outflow of
funds (Gazzola and Amelio, 2014).
Purchases of intangibles: intangibles are those assets which are used in business but they do not
have any physical existence and the amount paid by those assets is included in this term.
Net proceeds from the sale of equipment property and plant: the amount which is received
against the sales of old property and plant is denoted by this term. Some assets which are not
more useful for the business can be solved by the company and the amount which is received for
the same is included here.
Cash flow financing activities
Proceeds from borrowings: This figure marks that amount which is borrowed by the company
from market to finance its business activities. It is a liability which should be paid along with
interest. Fund borrowing is normal business activity and generates fix costs for the business.
Repayments of borrowings: this term denotes the amount which is repaid by the company to its
lenders. It is also noted that the amount which is borrowed by the company is same as the
amount paid and it proves that the borrowing was a short-term borrowing (Madineh, et. al.,
2017).
Payment for share buyback: the amount which is paid by the company to purchase its own shares
is reported here.