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Accounting and Finance of a University Students' College

   

Added on  2020-04-29

9 Pages1316 Words415 Views
Running head: CORPORATE ACCOUNTINGCorporate accountingName of the studentName of the universityAuthor note

1CORPORATE ACCOUNTINGTable of ContentsQuestion 1..................................................................................................................................2a.Cash flow and liquidity...................................................................................................2b.AASB 107.......................................................................................................................2c.Impairment......................................................................................................................2d.Information regarding dividend payment........................................................................3e.Other comprehensive income..........................................................................................3f.Share option plan of executives......................................................................................3g.Reserves..........................................................................................................................4h.Remuneration of the auditor............................................................................................4i.Financial statement preparation......................................................................................4j.Deferred tax liability.......................................................................................................5k.Income tax.......................................................................................................................5n.Standards on accounting.................................................................................................5Question 2..................................................................................................................................6Reflection report.....................................................................................................................6Reference....................................................................................................................................7

2CORPORATE ACCOUNTINGQuestion 1a.Cash flow and liquidityCash flow from the operation of the company for the year ended 30th June 2016 was $437,691 thousands as compared to the $ 340,448 thousand as on 30th June 2015. However,the closing balance for cash reduced to $ 103,631 as on 30th June 2016 as compared to $153,220 as on 30th June 2015. Therefore, the company’s liquidity position is reducing thatindicated that the company’s ability of paying the short-term liabilities is decreasing(Harveynorman.com.au 2017). On contrary, closing cash balance of Woolworths, company’s competitor, is $956,000 as on 30th June 2016 whereas as on 30th June 2015 it was $ 133,340. Therefore, withrespect to liquidity aspect, Woolworths is in better position (Woolworths.com.au 2017).b.AASB 107Note 28b that is stated in the page 112 is no more required after the amendment issuedduring 2016 March with respect to AASB 107 with the added paragraph under 44A to 44E(Carey, Potter and Tanewski 2014)c.Impairment If there is any indication that due to any event of loss the expected future cash flowswill be impacted and the amounted can be reliably estimated, the asset will be impaired.Impairment amount is determined by computing the market value and carrying value of asset(Amiraslani, Iatridis and Pope 2013). When the carrying amount exceeds the market value,the difference is charged as impairment. Impairment of asset for Harvey Norman as on 30thJune 2016 is as follows – Equity accounted investment - $ 72,35,000

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