Corporate Accounting: Analysis of Financial Statements of Ausdrill Ltd and Rio Tinto Ltd

Running head: CORPORATE ACCOUNTING
Corporate Accounting
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CORPORATE ACCOUNTING
Executive Summary
The primary reason for this evaluation is to investigate the financial statements of two
organizations for a time of three years. The organizations which are chosen for this
discussion are Ausdrill ltd and Rio Tinto Ltd. The assessment breaks down various
components which are disclosed in the yearly report, for example, the income tax expense.
The evaluation in dept analyses the income articulation of both the organizations keeping in
mind the end goal to under the cash flows of the business amid the year. The analysis leads to
a comparative analysis of the cash flow statement between Ausdrill ltd and Rio Tinto Ltd.
The evaluation of Effective tax rate and Cash and Book tax rates and furthermore a
clarification of the tax structure and tax expenses of both the organizations.

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CORPORATE ACCOUNTING
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Owner’s Equity......................................................................................................................4
Position of Capital Structure for both the organization.........................................................5
Analysis of Cash Flow Statement..........................................................................................6
Comparison of the three Components in the Cash Flow Statement.......................................8
Insight of Cash flow Statement..............................................................................................9
Other Comprehensive Income Statement Analysis................................................................9
Reporting of Comprehensive Items.....................................................................................10
Comparative Analysis of Comprehensive Items..................................................................10
Accounting for Income Tax.................................................................................................10
Effective Rate of Tax...........................................................................................................11
Deferred Tax Assets and Liabilities.....................................................................................11
Cash Tax Amount and Rate of Both Company....................................................................12
Difference between Book Tax Rate and Cash Tax Rate......................................................12
References................................................................................................................................12

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CORPORATE ACCOUNTING
Introduction
The primary motivation behind this evaluation is to examine the financial statements
of two organizations that operates in similar industry and has comparable level of business
operations. The two organizations which are chosen for this analysis are Ausdrill Ltd and Rio
Tinto Ltd which are both engaged in extraction and mining and of mineral assets. For the
analysis the yearly reports of the two organizations are taken. The analysis includes the
various components of the financial statements and furthermore makes a comparison between
the two organizations and find out the better reporting components of the yearly reports.
The company Ausdrill Ltd is occupied with the operations of extricating minerals and
mining business in Australia. The primary operations of the organization are in Australia but
the business has additionally extended to specific zones of Africa and United Kingdom
(Ausdrill.com.au. 2018). The organization has some expertise in mining administrations,
review control and drill and blast investigation projects. The organization additionally utilizes
a critical number of representatives in the business and the incomes of the business are
continually improving.
On the other hand the Rio Tinto Ltd is viewed as one of the main organizations in
Mining industry and has its beginning as an Anglo-Australian organization which has a larger
part of its functions in Australia. The organization is known for its mining exercises and is a
main metals producer in Australia. The organization deals with iron ores, coal, copper,
uranium and precious stones. Additionally, the organization is additionally occupied with the
operations of refining bauxite and various different minerals (Riotinto.com. 2018).
The primary motive of the analysis will be to break down the yearly reports of both
the organizations for last three continuous years beginning from 2017. The evaluation