Corporate Accounting: A Comprehensive Analysis of MMA Offshore Limited's Financial Statements

This article delves into the intricacies of corporate accounting by analyzing the financial statements of MMA Offshore Limited, a leading marine services provider in the Asia Pacific region. The analysis focuses on the cash flow statement, other comprehensive income statement, and accounting for corporate income tax. It examines the key components of each statement, highlighting the company's financial performance and the impact of tax regulations on its operations. The article provides a comprehensive understanding of corporate accounting principles and their practical application in a real-world business context.

Corporate Accounting
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Contents
Introduction................................................................................................................................3
Cash Flow Statement..................................................................................................................4
Other Comprehensive Income Statement...................................................................................7
Accounting for Corporate Income Tax......................................................................................8
Conclusion................................................................................................................................10
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Introduction
This article explains the different taxes which are used in corporate. With that the products
that are mentioned in the cash flow are highlighted with that additional comprehensive
income statement items may also be examined. The annual reports are analyzed so that the
monetary position of the organization could be determined. MMA Offshore Limited was
established in 1989 and is listed in Australian Securities Exchange in 1999. It's among
probably the largest service providers of a marine in the Asia Pacific Region. The company
has also attempted to grow the business of it's in the Middle East in 2015. It's more than
thousand folks that are serving to as a diversified in its operations so that the quality of
service may be provided. The statement also depicts the evaluation of the 3 years of cash
flow statement so that the performance of three years could be determined in the competitive
market.
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Cash Flow Statement
I) The products that are mentioned in the cash flow statement of the MMA Offshore Limited
are described according to operating, financing and investing activities.
Operating Activities: These're the activities that provide the majority of cash flows and helps
in determining that whether the business is profitable or perhaps not. The things of the
operating activities are:
Receipt from customers: These're the receipts that are obtained from the clients for the
purchase of the products & services (MMA Offshore Limited, 2018).
Interest Received: This's the quantity of the revenue that is received as interest for the
securities as well as the additional form of the product.
Payment to employees and suppliers: This's the amount that is paid to the suppliers for the
employees and the product for rendering services to the customers (Jones and Rhoades-
Catanach, 2013).
Income Tax received: The income tax that is certainly obtained by the organization as income
so that the transparency can be maintained (MMA Offshore Limited, 2018).
Other cost and interest of finance paid: This's the amount that is paid by the clients for the
cost and the interest of finance.
Investing Activities: The amount that is received as returns for investing in the assets of the
business in which the organization has invested.
Payment for the plant, equipment, and property: The payments that are created by the
organization for purchasing the property, equipment, and plant.
Proceeds from the sale of property, equipment, and plant: These're the amount that is
received as income for the sale of those property, equipment or plant.
Proceeds from the sale of investment: These're the incomes that are obtained by the purchase
of the investments in which the company has invested (MMA Offshore Limited, 2018).
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Dividends received: The dividends would be the amounts that are obtained by the
organization as dividends from the earnings of the company.
Financing Activities: The financing activities are those from which the company raises the
capital through outside sources.
Repayment of borrowings: The payment is made once again for acquiring the borrowings for
the organization.
Financing fees on borrowings: This's the financing fees which are obtained by the
organization for borrowings purchased for organization.
Dividends paid: These're the amounts that are paid from the profits to the shareholders of the
business.
Indeed, the changes have been observed from the last year for this year as the dividends were
paid to the shareholders in 2016 but in 2017 the amount wasn't paid as in 2017 as the
dividends to the shareholders (MMA Offshore Limited, 2018).
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II) The comparative analysis of the three consecutive years shows that there have been
various fluctuations on the cash flow from 2015 to that the 2017 (MMA Offshore Limited,
2018). It may be noticed that in 2015 the cash generated from the operating activities was
1dolar1 185360 while that in 2016 it was 120174 which can be seen that there has been
decreased in the operating activities of the business and it gain decreased in 2017 and became
bad to 1dolar1 6094 (Marchini and D 'Este, 2015). Thus, the company doesn't have sufficient
finances so that the operation of the business is able to go smoothly. While the revenue
generated from the investing activities in 2015 was 1dolar1 168335 and in 2016 it decreased
to 1dolar1 133017 and in 2017 it increased to 1dolar1 56991 so it could be noticed that
currently, the organization is achieving great returns from the investment activities (MMA
Offshore Limited, 2018). The cash that had been used in the financing activities in 2015
1dolar1 87,419 and in 2016 it increased to 1dolar1 65,918 it started to be results that are
negative and then in 2017 it once again increased to 1dolar1 71049 which showed the
company is much based mostly on the outside sources to fund its operations of the company
(MMA Offshore Limited, 2018). Thus, it could be observed that the company showed many
negative results as the company doesn't have sufficient funds to run its operations within the
organization (MMA Offshore Limited, 2018).?
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Other Comprehensive Income Statement
III) The products that are mentioned in another comprehensive income statement of the
MMA offshore Limited are:
o Exchange differences on translation of foreign operations
o Reclassification of exchange differences on disposal of entities
o Gain/Loss on hedge of total investment in a different operations
o Gain on cash flow hedges
o Transfer of money flow hedge gain to initial carrying amount of hedged items
IV) The explanation of the things that are mentioned in another comprehensive income
statement of the MMA offshore Limited are: Exchange differences on translation of foreign
Exchange: These're the differences which have been happened in the foreign exchange as a
result of the modification in the currencies of the different nations. Thus, this lead to the
differences in the exchange.
Reclassification of exchange differences on disposal of entities: These're the reclassifications
which are done to ensure that the differences between the disposal entities can be classified
accordingly within the organization.
Gain/Loss on hedges of total investment in foreign operations: These're the amounts which
are either earned or perhaps incurred as the losses as a result of the hedge of net investment in
the overseas operations so that the exchanges could be established (MMA Offshore Limited,
2018).
Gain on Cash Flow Hedges: These're the gains which have been attained by the organization
as a result of the hedges of the cash flow within the organizational structure.
Transfer of money flow hedges gain into initial carrying amount of hedge items: The amount
which has been gained is transferred to that of the original carrying amount of the things
which are of hedges.
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V) These things aren't listed in the profit and loss statement as these products aren't yet
realized after these things will be recognized so they'll be transferred to the income statement.
The things in the comprehensive income statement are those products which aren't yet
realized till the closing date of the accounting period. The foreign transactions and also the
hedge of the cash flows aren't realized till the closing of the accounting period so these things
are reported in another comprehensive income statement of the organization rather than in the
profit or the income and loss statement of the organization (MMA Offshore Limited, 2018).
This's the fundamental difference between 2 of the statements of the financial accounts
(Evans, et. al., 2013)
Accounting for Corporate Income Tax
VI) The tax expenses of the present year are the 1dolar1 1603. The tax costs are considered as
the complex as they're treated differently in the financial statements based on the GAAP and
are considered as the expenses based on the policy of the taxation. These're the expenses that
are paid by the organization but are viewed as the earnings for the accounting period
(Habanec and 2017), Bohuov. Thus, they're viewed as the revenue expenses of the business
so that the present and the deferred tax are considered on the balance sheet of the business.
These're also treated as the responsibility for the business so that the compliance can be
attained by reducing the noncompliance activities within the organization.
VII) The statement is correct that the tax rates of the company are just like that of the
accounting income of the business. These're just like the taxes are the one that is paid by each
person along with the company (Broberg, et. al., 2013). The individuals or the organizations
that pay the taxes that are viewed as the effective tax rates. The individual's tax rates are the
one that is viewed as the assessable income from the income of the customers but the
company pays the taxes according to the liabilities and the assets of the company so that the
taxes could be paid and effectiveness is usually attained within the organizational structure by
paying the taxes.
VIII) The deferred tax is considered as the differences between the amounts which are
carrying in the liabilities and the assets according to the financial statements and taxes which
are corresponding based upon the computation of the tax profits. These're recognized in the
losses and the profit when those items are related to the recognition of the comprehensive
income indirectly or directly (MMA Offshore Limited, 2018). The deferred tax liabilities are
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recorded by the organization in the year 2016 but it wasn't recorded in 2017. The present tax
assets are set off with that of the present tax liabilities that are associated with the income tax
levied on the income of the person or perhaps organization, D'Este.
IX) The income taxes paid aren't recorded by the organization but the income tax benefits are
captured by the organization that will assist the organization in bringing the transparency
within the organizational structure (Graham, et. al., 2012). The quantity of the income tax
paid is not just like that of the tax bills as the tax costs are the income for the accounting and
are captured in the financial statements according to the accounting standards as well as the
income tax payables are the obligations for the organization which are to be paid so that the
overall profitability of the organization could be elevated and the accountability can be
maintained.
X) No, the incomes taxes paid which are captured in the cash flow statement aren't exact
same that of the income tax expenses which are recorded in the income statement. There
occurs the difference both the statements as the tax paid shows the outflow of the cash from
the financial statements of the business. While the income tax costs are the incomes for the
company based on the accounting standards so these're addressed in the income statement of
the organization. Thus, this's just one of the differences between recordings of both the
transactions in the financial statements of the organization.
XI) The shocking thing about the treatment of the taxes is the fact that the income tax
payables are not recorded by the organization while the company has recorded the income tax
advantages of the organization. With that, there's the transparency within the tax treatment of
the organization as all the taxes are clearly shown by the organization in the financial
accounts of theirs.
The difficulty about the treatment of the taxes is the fact that there has been the complexity in
the transactions of the financial statements. With that, there has been the big difference
between the treatments of all of the taxes so it was hard to understand that the reason these
transactions are recorded in the various different statements and what are its implications so
that the accountability can be maintained within the organization (Wang, et. al., 2016).
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Conclusion
It may be reported that the taxes of the company are clearly examined so the knowledge of
the taxes has been gained that will help in attaining the transparency and the accountability
within the organizational structure of the business. With that, the things of the cash flows are
clarified so that the activities of the cash flows can be determined and another comprehensive
income statement may also be revealed. The distinction between the treatments of the taxes
within a variety of statements can also be determined which showed the transparency of the
organization while recording the financial transactions. Thus, It may be concluded that the
report overall gave the understanding of various statements with that of the treatment of the
taxes in their respective accounts so that the transparency and the accountability can be
maintained within the business.
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References
 Broberg, P., Umans, T. and Gerlofstig, C., 2013. Balance between auditing and
marketing: An explorative study. Journal of International Accounting, Auditing and
Taxation, 22(1), pp.57-70.
 Evans, C., Lignier, P. and Tran-Nam, B., 2013. Tax compliance costs for the small
and medium enterprise business sector: Recent evidence from Australia. Tax
Administration Research Centre University of EXETER Discussion Paper, pp.003-13
 Graham, J. R., Raedy, J. S., & Shackelford, D. A., 2012. Research in accounting for
income taxes. Journal of Accounting and Economics, 53(1), 412-434.
 Jones, S. and Rhoades-Catanach, S., 2013. Principles of Taxation for Business and
Investment Planning, 2014 edition. McGraw-Hill Higher Education
 MMA Offshore Limited, 2017. Annual Report. Available at:
https://www.mmaoffshore.com/investor-centre/financial-reports Accessed on May 24,
2018
 Wang, Y., Butterfield, S., & Campbell, M., 2016. Deferred Tax Items As Earnings
Management Indicators. International Management Review, 12(2), 37
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