Corporate Accounting: Analyzing Nufarm'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 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.............................................................................................................7
OTHER COMPREHENSIVE INCOME STATEMENT................................................................8
(iii) What items have been reported in the other comprehensive income statement?.................8
(iv) Explain your understanding of each item reported in the other comprehensive income
statement......................................................................................................................................9
(v) Why these items have not been reported in Income Statement/Profit and Loss Statement.10
ACCOUNTING FOR CORPORATE INCOME TAX.................................................................11
(vi)What is your firm’s tax expense in its latest financial statements?.....................................11
(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.................................................................12
(viii) Comment on deferred tax assets/liabilities that are reported on the balance sheet
articulating the possible reasons why they have been recorded................................................13
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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?...................................................13
(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?..............................................14
(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?.............................................................................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
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Introduction
This report is divided in to different parts of financial statements. It analyses the financial
statements of Nufarm which is global agricultural inputs company. It supplies the better
standard quality products and services and also maintains the better relations with
customers. The objective of the Nufarm is to grow the better tomorrow by providing the
services and products. It discusses the profit and loss account that shows the income and
expenses of the company. It also evaluates the cash flow statements that denote the cash
inflow and cash outflow. Cash flow statements help the company to ascertain the
profitability and liquidity of the firm.
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