Corporate Accounting: Analyzing Aeon Metals Limited's Financial Statements

Corporate Accounting
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Table of Contents
Introduction......................................................................................................................................4
CASH FLOWS STATEMENT.......................................................................................................5
(i) From your firm’s financial statement, list each item of reported in the CASH FLOWS
STATEMENT and write your understanding of each item. Discuss any changes in each item
of CASH FLOWS STATEMENT for your firm over the past year articulating the reasons for
the change....................................................................................................................................5
(ii) Provide a comparative analysis of your company’s three broad categories of cash flows
(operating activities, investing activities, financing activities) and make a comparative
evaluation for three years.............................................................................................................8
OTHER COMPREHENSIVE INCOME STATEMENT..............................................................11
(iii) What items have been reported in the other comprehensive income statement?...............11
(iv) Explain your understanding of each item reported in the other comprehensive income
statement....................................................................................................................................12
(v) Why these items have not been reported in Income Statement/Profit and Loss Statement.13
ACCOUNTING FOR CORPORATE INCOME TAX.................................................................14
(vi)What is your firm’s tax expense in its latest financial statements?.....................................14
(vii) 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.................................................................14
(viii) Comment on deferred tax assets/liabilities that are reported on the balance sheet
articulating the possible reasons why they have been recorded................................................14
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(ix)Is there any a current tax asset or income tax payable recorded by your company? Why is
the income tax payable not the same as income tax expense?...................................................15
(x) 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?..............................................16
(xi)What do you find interesting, confusing, surprising or difficult to understand about the
treatment of tax in your firm’s financial statements? What new insights, if any, have you
gained about how companies account for income tax as a result of examining your firm’s tax
expense in its accounts?.............................................................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18
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Introduction
This report analyses the working of financial statements in the company. Aeon Metals
limited is the listed company on the Australian Stock exchange. It is based on the mineral
exploration portfolio in the world. It carries the principal activities in the financial year that
is development and investigation of the project and exploitation for the precious metals in
Australia. This report discusses the concepts of cash flow statements as it helps to ascertain
the profitability and liquidity of the firm. They also evaluate the balance sheet that includes
the short-term and long-term debts and accrued business that helps to analyse the position of
the business.
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