Corporate Accounting: Analyzing ALS Global Limited's Financial Statements

Corporate Accounting
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Contents
Introduction.................................................................................................................................................3
Cash Flow Statement...................................................................................................................................4
Other Comprehensive Income Statement....................................................................................................8
Accounting for Corporate Income Tax........................................................................................................9
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
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Introduction
This report deals with the examination of the financial statements of the ALS Global Limited so
that it financial position can be examined and the changes in the statement can be done
accordingly. The cash flow statement is analyzed and the items which are reported in the cash
flow are predicted. With this the comparative statement analysis is of the investing, operating
and the financial activities are done so that the inflow and the outflow of the cash and cash
equivalents can be determined. ALS Global Limited is the organization which basically provides
the testing services. It was founded in 1863 under the name Campbell Brothers. It is basically
inspection, testing and Certification Company which have its headquarters in Brisbane,
Australia. It has more than 11,500 staff which operates in over 370 locations in approximately 65
countries. The examination of the company’s taxes is also done so that the better understanding
of the taxes can be gained.
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Cash Flow Statement
(I) The cash flow statement of the ALS Global Limited shows the inflow and the outflow
of cash (Sözbilir, et. al., 2015). The items which are listed in the cash flow statement
of the organization are:
Operating Activities: The cash from the operating activities basically focuses on the inflow and
outflow of company’s business activities which are related with buying and selling of services
and merchandise (ALS Global Limited, 2018). The items which are listed of the operating
activities are:
 Cash receipt from customers: It show the proceeds of all the cash which are received
from the customers to the organization (De Cristofaro and Falzago, 2014).
 Cash paid to suppliers and employees: It includes the payments which are done to the
employees for their contribution as well as the suppliers (ALS Global Limited, 2018).
 Interest Paid: It is the amount of interest which is paid by the organization on fixed or the
variable rate for securities.
 Interest Received: It determines the interest which is received as the income for the
purchase of securities (ALS Global Limited, 2018).
 Income Taxes Paid: It is the obligation which has to be paid by the organizations on the
assessable income.
Investing Activities: It determines the amount of cash which is received by the organizations for
doing investment in the financial markets. The items of the investing activities are:
 Payments for property, plant and equipments: It shows all the payments which are
made by the organization for purchasing the property, equipments and the plant (ALS
Global Limited, 2018).
 Repayments / Loans joint venture entity: It shows the repayment of all the loans which
are taken by the organization for the business purpose (ALS Global Limited, 2018).
 Payment for net assets on acquisition of business and subsidies: It is the payment which
is made for the acquisition of the net assets for the business purpose (Safonova, et. al.,
2016).
 Acquisition of minority interest equity: The acquisition for the fraction share of
company which is amounting to be less than 50% of the voting shares (ALS Global
Limited, 2018).
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