Corporate Accounting: Analysis of Boral Limited and Adelaide Brighton Limited | Desklib

This assignment evaluates the understanding of owners’ equity, cash flow statement, other comprehensive income statement, and accounting for corporate income tax for Boral Limited and Adelaide Brighton Limited. Comparative analysis of debt and equity portion, cash flow statement, and comprehensive income statement for three financial years are computed. Effective tax rate, deferred tax liabilities/assets, and cash tax rate are also computed.

RUNNING HEAD: CORPORATE ACCOUNTING
[Document title]

CORPORATE ACCOUNTING 1
EXECUTIVE SUMMARY
The purpose of this assignment is to evaluate the complete understanding of owners’
equity, cash flow statement covering all the three activities, other comprehensive income
statement and the accounting for corporate income tax. In this assignment, companies
selected are Boral Limited and Adelaide Brighton limited. Both of these companies are
listed in Australian stock market and belongs to materials industry with ASX codes are BLD
and ABC respectively. Adelaide Brighton limited is a producer of lime and construction
materials in Australia. It produces and distributes lime, concrete, clinker, cement and concrete
products. Boral Limited also produces materials related to construction and building products
across world. For the complete understanding of the above topics, comparative analysis of
debt and equity portion, cash flow statement and the comprehensive income statement of both
selected companies for previous three years (2017, 2016 and 2015) are computed. Further
this task also reports deferred tax liabilities or assets given in the financial statements. In
addition to this, cash tax rate along with cash tax amount is also computed. At the end, this
report ends with stating conclusions about both companies and references.

CORPORATE ACCOUNTING 2
Contents
INTRODUCTION.....................................................................................................................................3
Owners’ Equity..................................................................................................................................4
Cash Flow Statement:........................................................................................................................7
Other comprehensive income statement:.......................................................................................17
Accounting for corporate income tax:.............................................................................................20
CONCLUSION.......................................................................................................................................24
REFERENCES........................................................................................................................................25

CORPORATE ACCOUNTING 3
INTRODUCTION
BORAL LIMITED
Boral Limited produces materials and products related to construction and related to
buildings in Australia. The Boral limited is listed in Australian Stock market and the ASX
code is ASX: BLD (AX, 2018). The core drive of the company is to produces and sells
supreme and finest eminence of products and materials across globe. It sells the materials and
products in Middle East, Asia, Australia and North America (Boral Limited, 2018). The
company encourages safe and friendly working environment for the employees. Also analyse
that the company has employed around 11499 people which includes 18% of women
workforce. The key people are Mike Kane is CEO whereas Dr Brian Clark is the chairman.
The foremost agenda of the company is to serve better value to the owners of the company.
ADELAIDE BRIGHTON LIMITED
Adelaide Brighton Limited is also a producer of construction materials. It mainly operates in
Australia. It is listed in Australian Stock market and the ASX code is ASX: ABC (ASX,
2018). The core business activities of a company are to produce, sells, imports distribute
concrete, clinker, construction, lime and cement. Further the company emboldens safe,
morals and welcoming working atmosphere for the employees. Also analyse that the
company has employed around 1600 people in Australia. Company’s main aim is to
maximise the shareholders’ value. Further in order to meet the customer’s satisfaction,
company offer turnkey results in all the business areas. The chief executive officer is Martin
Brydon (Adelaide Brighton limited; 2017, 2016).
In this task both entities “Boral Limited” and “Adelaide Brighton limited” are taken into
account. This report covers Complete understanding of each item of equity and cash flow
items. In addition to this, comparative analysis of debt and equity portion, cash flow

CORPORATE ACCOUNTING 4
statement comprising three types of cash flows (operating activities, investing activities and
financing activities) and other comprehensive income statement for three financial years that
is 2017, 2016 and 2015 are computed. Moreover, effective tax rate of both companies is
computed with the help of given tax expense in financial statements. Deferred tax
assets/liabilities are also recorded. Also cash tax rate is computed along with cash tax
amount. At last, this task is ended up with conclusions and references.
Owners’ Equity
i. Items of Equity:
Adelaide Brighton limited:
 Adelaide Limited paid dividends for $ 156 million in financial year 2017
whereas in 2016 the dividends paid was $ 178.5 million. In other words, the
dividend was decreased by 12.60%.
 Profit for the period was included in equity calculation. Thus, as per the
annual report, net profit reported by the company is $ 182.1 million in 2017
whereas in 2016 net profit was reported $ 186.2 million which means the
profit has declined by 2.2% because of increment in administration costs, cost
of sales and freight and distribution costs (Adelaide Brighton limited, 2017,
2016).
 Other comprehensive income is also a part of statement of changes in equity.
The Adelaide limited has reported $ 183.8 million in FY 2017 whereas in FY
2016 the same was reported with an amount $ 187.4 million. The decrement is
due to less net profit in 2017 as compared to 2016 (Adelaide Brighton limited,
2017, 2016).
Boral Limited:

CORPORATE ACCOUNTING 5
 According to the annual report 2017, it was observed that Boral limited had
recognized $ 296.9 million as net profit whereas in financial year 2016, net
profit was recognized $ 256 million. The reason for such increment in net
profit in 2017 was due to increase in sales revenue by 7.92% in comparison to
2016.
 Taken into consideration total comprehensive income for the period 2017 and
2016 it was observed that in 2017 the same was reported with $ 174.3 million
whereas in 2016 it was reported $ 251.7 million. This was resulted the
decrement by 44.40% from 2016. The main reason was due to negative
amount of translation of net assets of overseas entities (Boral Limited, 2017;
2016).
 The dividend paid is included in the statement of changes in equity. From the
annual report, it is observed that dividend paid by the company in 2017 was $
226.2 million whereas in 2016 dividend paid was $ 154.2 million. The reason
was due to increment in net profit recognized by the company.
ii. Comparative Analysis:
Adelaide Brighton Limited
Particulars
2017
($m)
2016
($m)
$
change
%
change
LIABILITIES
Current Liabilities
Trade and other payables 145.8 117 28.8 25%
Borrowings 0.3 0.4 -0.1 -25%
current tax liabilities 9.8 15.4 -5.6 -36%
Provisions 33.8 31.9 1.9 6%

CORPORATE ACCOUNTING 6
Other liabilities 15.1 3.3 11.8 358%
Total current liabilities 204.8 168 36.8 22%
Non-current liabilities
Borrowings 428.9 309.6 119.3 39%
Deferred tax liabilities 86 89.9 -3.9 -4%
Provisions 45 39 6 15%
Other non-current liabilities 0.1 0.1 0 0%
Total non-current liabilities 560 438.6 121.4 28%
Total liabilities 764.8 606.6 158.2 26%
EQUITY
Share Capital 733.1 731.4 1.7 0%
Reserves 1.9 2.9 -1 -34%
Retained Earnings 510.6 483.3 27.3 6%
Total Equity 1245.6 1217.6 28 2%
(Adelaide Brighton Limited, 2017; 2016).
Boral Limited
Particulars 2017 ($m)
2016
($m)
$
change
%
change
LIABILITIES
Current Liabilities
Trade creditors 812.4 607.9 204.5 34%
Loans and borrowings 407.4 352.4 55 16%
Financial liabilities 15.4 7.8 7.6 97%
current tax liabilities 64.1 36.6 27.5 75%

CORPORATE ACCOUNTING 7
Employee benefit liabilities 115.5 118.8 -3.3 -3%
Provisions 53.5 58.2 -4.7 -8%
Total current liabilities 1468.3 1181.7 286.6 24%
Non-current liabilities
Loans and borrowings 2163.7 992.8 1170.9 118%
Financial liabilities 10.9 18.6 -7.7 -41%
Employee benefit liabilities 44.4 11.3 33.1 293%
Provisions 157.5 59 98.5 167%
Other liabilities 28.3 30.8 -2.5 -8%
Total non-current liabilities 2404.8 1112.5 1292.3 116%
Total liabilities 3873.1 2294.2 1578.9 69%
EQUITY
Issued capital 4265.1 2246.2 2018.9 90%
Reserves 19.3 162 -142.7 -88%
Retained Earnings 1156.1 1098.1 58 5%
Total Equity 5440.5 3506.3 1934.2 55%
(Boral Limited, 2017; 2016).
Cash Flow Statement:
iii. Items of Cash flow statement:
a. Cash flow from operating activities:
Adelaide Brighton Limited:
 Receipts from customers and payments to suppliers and employees are
increased in 2017 from 2016. In other words, payments to suppliers and
employees are increased by 11.32% which is more than receipts from

CORPORATE ACCOUNTING 8
customers which is 8.1% and there are chances of decrement of net profit in a
current FY (Adelaide Brighton limited, 2017; 2016).
 Interest paid is covered under cash flows from operating activities because it is
considered as regular in nature. In this case, FY 2017 has reported $ 13 million
whereas in 2016 it was recognised as $ 12.1 million (ASX, 2018).
 Cash flows from operating activities are also covered taxes paid for income.
he company has paid $ 81.3 million in 2017 whereas $ 67.2 million in 2016.
As a result, cash flow from operating activities are declined in 2017 from 2016 by 9.74%.
Boral Limited:
 This company has reported net cash receipts from customers is $ 534.1 million
in 2017 which shows a decrement from last year by 5.67%. This is due to less
receipts from customers in current FY by $ 52.4 million.
 Both dividend and interest received by the company are more in 2017 which is
a positive sign for the company (Boral Limited; 2017; 2016).
 Restructure, acquisition and integration costs paid by the company is $ 116.9
million in 2017 whereas 2016 company has reported $34.5 million. The reason
is that company has purchased controlled entities and businesses (ASX, 2018).
As a result, cash flow from operating activities are declined in 2017 from 2016 by 13.44%.
b. Cash flow from investing activities:
Adelaide Brighton Limited:
 In this category of cash flow, payments or proceeds related to fixed assets,
intangible assets and investments are recorded. Hence, the company had
reported payments for property, plant, equipment and intangibles and

CORPORATE ACCOUNTING 9
payments for acquisition of businesses is $ 89.1 million and $ 80.2 million in
2017 whereas in 2016 it was reported $ 86.5 million.
 Proceeds from sale of property, plant, equipment is only $ 17.7 million
whereas in 2016 it was reported $ 23.2 million.
As a result, the company has reported Net cash outflow from investing activities is $ 154.1
million in 2017 which means the same was increased by $ 90 million.
Boral Limited:
 In this category of cash flow, payments or proceeds related to fixed assets,
intangible assets and investments are recorded. Hence, the company had
reported payments for property, plant, equipment and intangibles and is $
340.1 million in 2017. Also given that the company has purchased controlled
entities and businesses for $ 3636.5 million in 2017.
 The proceeds from disposal of purchased controlled entities and businesses for
$ 122.5 million in 2017. Hence the result would be cash outflow from
investing activities.
As a result, net cash used in investing activities is $ 3731.5 million which has increased by $
3471.8 million from past year.
c. Cash flow from financing activities:
Adelaide Brighton Limited:
 Proceeds from issue of shares are included in cash flow from financing
activities where the company has reported $ 3.5 million.
 The company has drawn down borrowings of $ 118.5million whereas in last
year company has repaid borrowings of $ 21 million.

CORPORATE ACCOUNTING 10
 Dividends paid are recognised in cash from financing activities. In this case, $
156 million and $ 178.5 million was reported in FY 2017 and 2016
respectively. This might due to less issue of shares in 2017.
As a result, net cash outflow from financing activities is $ 34 million which has decreased by
$ 161.5 million from past year (Adelaide Brighton Limited, 2017; 2016).
Boral Limited
 Dividends paid are recognised in cash from financing activities. In this case, $
226.2 million and $ 154.2 million was reported in FY 2017 and 2016
respectively. This might due to more issue of shares in 2017.
 Capital raising are included in cash flow from financing activities where the
company has reported $ 2018.9 million in 2017 (Boral limited, 2017; 2016).
 Proceeds from borrowings are increased by 1801.4 million in 2017 from 2016
which is tremendous.
As a result, net cash provided by financing activities is $ 3107.5million which has increased
by $ 2833.6 million from past year.
iv and v. Comparative analysis:
Adelaide Brighton limited
Particulars
2017
($'m)
2016
($'m)
2017
(%)
2015
($'m)
2016
(%)
cash flows from operating activities
Receipts from customers (inclusive of goods
and services tax)
1,661.
30
1,536.
10 8.15%
1,545.
80
-
0.63
%

CORPORATE ACCOUNTING 11
Payments to suppliers and employees
(inclusive of goods and services tax)
-
1,379.
40
-
1,239.
10
11.32
%
-
1,272.
10
-
2.59
%
Joint venture distributions received 26.40 18.60
41.94
% 16.20
14.81
%
Interest received 1.60 1.50 6.67% 1.70
-
11.76
%
Interest paid -13.00 -12.10 7.44% -13.00
-
6.92
%
Other income 8.60 6.20
38.71
% 5.60
10.71
%
Income taxes paid -81.30 -67.20
20.98
% -58.50
14.87
%
Income taxes refunded 0.00 4.40
-
100.0
0% 4.20
4.76
%
Net cash inflow from operating activities 224.20 248.40
-
9.74% 229.90
8.05
%
Cash flows from investing activities
Payments for property, plant, equipment and
intangibles -89.10 -86.50 3.01% -74.30
16.42
%
Payments for acquisition of businesses, net of
cash acquired
-80.20 0.00 #DIV/
0!
-6.50 -
100.0

CORPORATE ACCOUNTING 12
0%
Proceeds from sale of property, plant and
equipment 17.70 23.20
-
23.71
% 50.80
-
54.33
%
Loans to joint venture entities -3.10 -2.00
55.00
% -0.90
122.2
2%
Repayment of loans from other parties 0.60 0.60 0.00% 0.60
0.00
%
Net cash outflow from investing activities
-
154.10 -64.70
138.1
8% -30.30
113.5
3%
Cash flows from financing activities
Proceeds from issue of shares 3.50 4.00
-
12.50
% 2.80
42.86
%
Draw down / (repayment) of borrowings 118.50 -21.00
-
664.2
9% -61.50
-
65.85
%
Dividends paid to Company’s shareholders
-
156.00
-
178.50
-
12.61
%
-
139.50
27.96
%
Net cash outflow from financing activities -34.00
-
195.50
-
82.61
%
-
198.20
-
1.36
%
Net (decrease)/increase in cash and cash
equivalents
36.10 -11.80 -
405.9
1.40 -
942.8

CORPORATE ACCOUNTING 13
3% 6%
Effects of exchange rate changes on cash and
cash equivalents 21.50 33.30
-
35.44
% 31.90
4.39
%
Cash and cash equivalents at end of period 57.60 21.50
167.9
1% 33.30
-
35.44
%
Boral Limited
Particulars
2017
($'m)
2016
($'m)
2017
(%)
2015
($'m)
2016
(%)
cash flows from operating activities
Receipts from customers
4,583.
30
4,635.
70
-
1.13%
4,847.
40
-
4.37
%
Payments to suppliers and employees
-
4,049.
20
-
4,069.
50
-
0.50%
-
4,317.
50
-
5.74
%
Dividend received 87.90 75.90
15.81
% 41.20
84.22
%
Interest received 24.40 8.50
187.0
6% 8.80
-
3.41
%
borrowing costs paid -74.40 -69.20 7.51% -72.10 -

CORPORATE ACCOUNTING 14
4.02
%
Income taxes paid -41.80 -69.40
-
39.77
% -45.40
52.86
%
restructure, acquisition and integration cost
-
116.90 -34.50
238.8
4% -44.10
-
21.77
%
Net cash inflow from operating activities 413.30 477.50
-
13.45
% 418.30
14.15
%
Cash flows from investing activities
Payments for property, plant, equipment
-
336.40
-
320.30 5.03%
-
243.60
31.49
%
purchase for intangibles -3.70 -3.50 5.71% -6.30
-
44.44
%
purchase of controlled entities and businesses
-
3,636.
50 0.00
#DIV/
0! 0.00
#DIV
/0!
cash acquired relating to acquisition of
controlled entities 74.80 0.00
#DIV/
0! 0.00
#DIV
/0!
repayment of loan by associates 8.80 8.80 0.00% 0.00
#DIV
/0!
proceeds on disposal of non-current assets 39.20 55.50 - 45.00 23.33

CORPORATE ACCOUNTING 15
29.37
% %
proceeds on disposal of controlled entities and
associates 122.50 0.00
#DIV/
0! 149.20
-
100.0
0%
Net cash used in investing activities
-
3,731.
30
-
259.50
1337.
88% -55.70
365.8
9%
Cash flows from financing activities
capital raising
2,018.
90 0.00
#DIV/
0! 0.00
#DIV
/0!
on-market share buy back 0.00
-
115.40
-
100.0
0%
-
116.00
-
0.52
%
dividends paid
-
226.20
-
154.20
46.69
%
-
129.10
19.44
%
Proceeds from borrowings
1,803.
60 2.20
81882
% 245.20
-
99.10
%
repayment of borrowings
-
489.30 -6.00
8055
%
-
251.70
-
97.62
%
Net cash outflow from financing activities
3,107.
00
-
273.40
-
1236.
43%
-
251.60
8.66
%
Net (decrease)/increase in cash and cash - -55.40 280.8 111.00 -

CORPORATE ACCOUNTING 16
equivalents 211.00 7%
149.9
1%
Cash and cash equivalents at beginning of
period 452.10 505.80 383.20
Effects of exchange rate changes on cash and
cash equivalents -3.30 1.70
-
294.1
2% 11.60
-
85.34
%
Cash and cash equivalents at end of period 237.80 452.10
-
47.40
% 505.80
-
10.62
%
(Adelaide Brighton Limited, 2017; 2016); (Boral Limited, 2017; 2016).
Adelaide Brighton limited: As per the above comparative analysis, it can be said that receipts
from customers is increased by 8.15% in 2017 whereas in 2016 it was increased by 0.63%
Similarly, cash paid to suppliers and employees are also increased by 11.32% in 2017 as
compared to 2.59% in 2016. This signifies a worry situation from point of view of operating
activities. In addition to this, proceeds from plant and equipment shows declining trend
whereas the payments have also shown in declining trend. Further interest paid by the
company is more than interest received by the company in 2017. Thus, it is inferred that
company has highest amount of net cash inflows in among three years. Continuing the
explanation with financing activities it depicts that company has drawn down the borrowings
by $ 118 million in 2017 which shows better financial health. As a result, the company has
overall cash and cash equivalents of $ 36.1 million which is highest among the three years
(Adelaide Brighton limited, 2017; 2016).
Boral limited: As per the above comparative analysis, receipts from customers was declined
by 1.13% in comparison to 2016 and 2015 financial years. Further, payments to suppliers and

CORPORATE ACCOUNTING 17
employees is also decreased by 0.5% from 2016 whereas it was decreased by 5.47% in 2016
as compare to 2015 (Boral Limited, 2017; 2016). Taking the figures of purchase of
intangibles and plant, property and equipment it is observed that company has paid highest
amount in 2017 in comparison to 2016 and 2015. Similarly, Proceeds from non-current assets
is decreased by 29% from 2016 whereas it was increased by 23% in 2015. Continuing the
explanation, the company has purchased controlled entities and businesses with an amount $
3636.5 million. Further with financing activities it depicts that company has paid dividends
higher by $ 483.6 million in 2017 as paralleled to 2016. Similarly, the company is proceeds
with a borrowing amount which is higher by $ 1801 million. Also there were no capital
raising in 2016 and 2015. Thus as a result, net cash increase or decrease in least among three
years in 2017.
Other comprehensive income statement:
vi. Items of Other comprehensive income statement:
Adelaide Brighton limited: This statement forms an integrated part of financial statements.
This statement has reported profit for the period and other comprehensive income which are
subdivided into items that are reclassified to profit or loss and items that are not reclassified
to profit or loss. The total of above items is attributable to owners of the company and non-
controlling interests. Hence in this case, company has reported $ 183.8 million in 2017 and $
187.4 million in 2016 (Adelaide Brighton Limited, 2017; 2016).
Boral limited: This statement forms an integrated part of financial statements. This statement
has reported profit for the period and other comprehensive income which are subdivided into
items that are reclassified to profit or loss and items that are not reclassified to profit or loss.
The total of above items is attributable to members of parent entity and non-controlling
interests. Hence in this case, company has reported $ 251.7 million and $ 410.5 million in
2017 and 2016 respectively (Boral Limited, 2017; 2016).

CORPORATE ACCOUNTING 18
vii. The statement of comprehensive income encompasses net profit for the period together
with all those revenues and outlays that generally evade the income account for the reason
that they are yet to be recognized. For instance: Translation of foreign operations, cash flow
hedge funds, gains or losses from derivatives etc. Hence, it can be said that above
transactions are not regular in nature and also are not occur often and also they are not normal
profit or loss for the company and therefore they are not required to report in statement of
profit or loss of the company.
viii. Comparative analysis:
Adelaide Brighton Limited
Particulars
2017
($m)
2016
($m)
$
chang
e
%
change
Net profit 182.1 186.2 -4.1 -2%
Other comprehensive income
Items reclassified to income statement
net exchange from translation of foreign
operations taken to equity 0.4 -0.9 1.3 -144%
fair value adjustment on cash flow hedges 0 1.3 -1.3 -100%
Income tax relating to these items 0 -0.4
Items not reclassified to income statement
Actuarial gain on retirement benefit obligation 1.9 1.7
Income tax relating to these items -0.6 -0.5 -0.1 20%
Total comprehensive income 183.8 187.4 -3.6 -2%
(Adelaide Brighton Limited. 2017; 2016).

CORPORATE ACCOUNTING 19
Boral Limited
Particulars
2017
($m)
2016
($m)
$
chang
e
%
change
Net profit 296.9 256 40.9 16%
Other comprehensive income
Items reclassified to income statement
net exchange from translation of foreign
operations taken to equity -123.9 -7 -116.9 1670%
fair value adjustment on cash flow hedges 2.6 -7.7 10.3 -134%
income tax on items that may be reclassified
subsequently to income statement -1.3 10.4 -11.7 -113%
Total comprehensive income 174.3 251.7 -77.4 -31%
(Boral Limited, 2017; 2016).
To reflect the true and fair view about the company’s financial stability and
performance then the above items of comprehensive income should not form the part of
statement of income. As these items are not in regular nature and so they do not form part of
ordinary profit earned by the company. Further these items have no monetary effect and
therefore to present the shareholders the true picture about the company’s performance in
order to encourage them for the investment these are not included in income statement.
ix. Items of other comprehensive income should become the part of evaluation of manager’s
performance because they are ultimate responsible about the company financial stability and
the performance.

CORPORATE ACCOUNTING 20
Accounting for corporate income tax:
x. Tax expense:
Particulars 2017 ($m) 2016 ($m)
Adelaide Brighton
Limited
$ 72.3 $ 68.4
Boral Limited $ 51.4 $ 35.6
(Adelaide Brighton Limited, 2017; 2016); (Boral Limited, 2017; 2016).
xi. Effective tax rate:
Formula:
Effective tax rate = [Income tax expense/ Profit before tax] *100
Adelaide Brighton Limited
Particulars 2017 ($m) 2016 ($m)
Income tax expense $72.3 $ 68.4
Profit before tax $ 254.4 $ 254.6
Effective Tax Rate 28.42% 26.87%
(Adelaide Brighton Limited, 2017; 2016).
Boral Limited
Particulars 2017 ($m) 2016 ($m)
Income tax expense $ 51.4 $ 35.6
Profit before tax $ 301 $ 281.1
Effective Tax Rate 17.08% 12.67%
(Boral, 2017; 2016).
Adelaide Brighton Limited has higher effective tax rate.

CORPORATE ACCOUNTING 21
xii. For the purpose of reducing the computable revenue of the entity, deferred tax
assets are recorded in the statement of financial position. The reason of recording
deferred tax assets is at the time when the company has over funded the tax
amount and the additional sum will return to the company in form of tax relief. In
addition to this, when there is a difference in accounting rules and tax rules then
deferred tax asset is reported. Likewise, Deferred tax liability is totally opposing
to deferred tax assets wherein entity would require to pay taxes as per accounting
rules but have delayed to the future. In other words, when the company has under
paid the amount of tax then deferred tax liabilities are created. Hence according to
this case, Adelaide Brighton limited has recognised Deferred tax liabilities of
worth $ 86 million in financial year 2017 (Adelaide Brighton limited, 2017; 2016)
whereas Boral limited has recorded deferred tax assets of worth $ 128.4 million in
Financial Year 2017 (Boral Limited, 2017; 2016).
xiii. Deferred tax assets/deferred tax liabilities:
Adelaide Brighton limited has stated Deferred tax liabilities of worth $ 86
million and $ 89.9 million in financial year 2017 and 2016 respectively. This
signifies that the Deferred tax liabilities is decreased by $ 3.9 million in year 2017
in comparison to year 2016 (Adelaide Brighton limited, 2017; 2016).
Boral limited has stated Deferred tax assets of worth $ 128.4 million and $ 234.7
million in financial year 2017 and 2016. This signifies that the Deferred tax assets
are decreased in year 2017 in comparison to year 2016 by $ 106.3 million (Boral
Limited, 2017; 2016).
xiv. Cash tax amount:
Adelaide Brighton limited

CORPORATE ACCOUNTING 22
Particulars 2017 ($m) 2016 ($m)
Current Income tax expense $ 71.8 $ 69.9
Unlevered income taxes $ 1.8 -$ 8.3
Cash tax amount $ 73.6 $ 61.6
(Adelaide Brighton Limited, 2017; 2016).
Boral limited
Particulars 2017 ($m) 2016 ($m)
Current Income tax expense $ 76.2 $ 15.5
Unlevered income taxes -$ 46 $ 33.1
Cash tax amount $ 30.2 $ 48.6
(Boral, 2017; 2016).
xv. Cash Tax rate:
Formula: Cash tax rate = [Cash tax expense/ profit before tax] *100
Adelaide Brighton Limited
Particulars 2017 ($m) 2016 ($m)
Cash tax amount $ 73.6 $ 61.6
Profit before tax $ 254.4 $ 254.6
Cash Tax Rate 28.93% 24.19%
(Adelaide Brighton Limited, 2017; 2016).
Boral Limited
Particulars 2017 ($m) 2016 ($m)
Cash tax amount $ 30.2 $ 48.6
Profit before tax $ 301 $ 281.1
Cash Tax Rate 10.03% 17.29%

CORPORATE ACCOUNTING 23
(Boral, 2017; 2016).
Adelaide Brighton Limited has higher cash tax rate.
xvi. The cash tax rate is calculated under the law of taxation and it is paid to the government
establishments whereas Book tax rate is calculated as per the policies of generally accepted
accounting principles and presented in the financial statements of the company.
CONCLUSION
It is concluded that performance of Adelaide Brighton limited and Boral limited is
evaluated from various categories such as on basis of owners’ equity, cash flow statement,
other comprehensive income and corporate tax rate. According to comparative analysis of
both companies it can be concluded that Adelaide Brighton limited and Boral limited has
sound financial stability.

CORPORATE ACCOUNTING 24
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