Corporate Accounting

Running head:CORPORATE ACCOUNTING
Corporate Accounting
Name of the Student:
Name of the University:
Author’s Note:
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2CORPORATE ACCOUNTING
Table of Contents
Changes in each item of cash flows statement for the firm over the past year along with the
reasons for the change................................................................................................................3
Comparative analysis of the company’s three broad categories of cash flows that is operating
activities, investing activities and financing activities:..............................................................5
Items of Other Comprehensive Income Statement....................................................................6
Reasons for the items have not been reported in Income Statement/Profit and Loss Statement
....................................................................................................................................................7
Clear description of your firm’s income tax expense................................................................8
Verification of the figure of tax being same as the company tax rate times the firm’s
accounting income.....................................................................................................................8
Deferred tax that is reported in the balance sheet along with the reasons for the record...........9
Current tax assets or income tax payable recorded by the company.........................................9
Verification of the income tax expense shown in the income statement same as the income
tax paid shown in the cash flow statement...............................................................................10
Unique characteristics in the financial statements, new insights, and other information........10
Appendix..................................................................................................................................12

3CORPORATE ACCOUNTING
Changes in each item of cash flows statement for the firm over the past year along with
the reasons for the change
By evaluating the cash flow statements of the business organisations, it becomes
easier to gain an understanding of their inflows as well as outflows(Siew 2015). For this
paper, CSR Limited is chosen and each item of its cash flow statement is analysed critically
as follows:
Cash flows from operations:
The cash flow statement mainly consist of three sections that involves cash flow from
investing activities, operating activities, financing activities and net cash as well as cash
equivalents. The items that are included in the operating activities involves depreciation,
adjustments to net income, liabilities changes, inventory changes, changes in accounts
receivable and changes in other operating activities (Sierra‐García, Zorio‐Grima and García‐
Benau 2015). It has been seen that the total cash flow of operating activities has increased in
the year 2017 to $264800 from the year 2016 and 2015.
Cash flows from investing activities:
The items that are included in the investment activities are capital expenses,
investments and other cash flow from investment activities. It is evident that the total cash
used for the investment activities decreased in the year 2016 to -$80800 from $ -45400 in the
year 2015 and then decreased to $ -60700 in the year 2017.
Cash flows from financing activities:
In this cash flow statement of CSR limited, financing activities mainly consists of the
paid dividends, net borrowings, purchase as well as sale of stocks and other cash flows from

4CORPORATE ACCOUNTING
the financing activities. There has been rise in total cash used in the financing activities in the
year 2017 to $-257900 from the year 2016 and 2015.
Moreover, the change in cash and cash equivalents amounts to -$ 54000 in the year
2017, $4700 in the year 2016 and $4700 in the year 2015.
Comparative analysis of the company’s three broad categories of cash flows that is
operating activities, investing activities and financing activities:
In order to carry out the comparative analysis of the cash flow statement of CSR
Limited in 2017, the following figure is represented:
The above figure denotes continual rise in cash flows from operating activities in the
context of CSR Limited from $ 234300 in 2015 to $ 252200 million in 2016 and to $
2648000 million in 2017. The primary cause for rise in this section is the increase in amounts
from the customers. In addition to this, rise in receipt of interest and dividend could be held
accountable for this rise (Paterson 2016).
In relation to cash flows from investing activities, increase in cash outflows could be
observed in 2016 as opposed to 2015 from $45400 in 2015 to $80800 in 2016. This is
because additional investments are made in order to purchase cash and cash equivalents.
However, in 2017, decrease in cash outflows could be identified, which have been to $80800
in 2016 to -$607000 in 2017. This is because investment amounts have been reduced for
purchasing plant and equipment (Xu, Davidson and Cheong 2017).
For cash flows from financing activities, rising trend is observed in terms of outflows
from 2015 to 2017 from -$126800 in 2015 to -$166700 in 2016 and to -$257900 in 2017.
This is because additional dividend payments are made over the years coupled with the