HA2032 Corporate Accounting Assignment

Added on - 28 May 2020

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Running head: CORPORATE ACCOUNTINGCorporate AccountingName of the University:Name of the Student:Author’s Note:Course ID:
CORPORATE ACCOUNTING1Table of ContentsAnswer 1..............................................................................................................................2Answer 2..............................................................................................................................3Answer 3..............................................................................................................................4Answer 4..............................................................................................................................5Answer 5..............................................................................................................................6Answer 6..............................................................................................................................7Answer 7..............................................................................................................................8References............................................................................................................................9
CORPORATE ACCOUNTING2Answer 1There are three vital aspects within the company’s balance sheet and one among theseaspects is considered to be equity. There is no exception to this fact in case of Isentia grouplimited.In the year 2017, the company’s balance sheet elucidated that its capital issued hasreserves, earnings those are retained along with contributed equity.Issued capital is deemed to beequity associated with the business organizations.Computation of capital issued is carried outthrough overall outstanding share multiplication along with every shares face value.As part theannual report of Isentia group limited an increase on the issue capital cab be observed in the year2017 in comparison to 2016, which is $ 402,472,000 in 2017 from $ 424,072,000 in 2016(Agrawal and Cooper 2017). There are various major aspects pertaining to the issued capital andsuch aspects include issuance of ordinary shares, issuance related to share cost and income taxpertaining to issuance of shares. Another aspect that is considered within the equity of thecompany is reserves. Taking into account financial accounting concept, reserve is deemed as afraction of the organization’s equity. Instead of primary share capital, this could be termed as theadditional amount. According to the annual report of Isentia Group in 2017, it could be observedthat the equity reserves of the year have raised considerably compared to those in 2016.Threetypes of equity reserves acquired by the company includes employee benefit equity reserve,reserve for translation of foreign currency and reserve for hedging.In its current asset base, the organization considers its income tax payout. In its statementof cash flow, Isentia Group has depicted decrease in income tax paid in 2017, which signifiespositive usage of cash. This signifies that certain aspects of the tax expenses that have been
CORPORATE ACCOUNTING3deducted before mentioning them within the cash flow statement. For such causes, thedifferences within tax expenses might be observed within cash flows and income statement.Another component within Isentia group limited Company is retained earnings. With thehelp of retained earnings, the total losses and profits of the organization could be identified alongwith the payment of dividends made to the shareholders. The current annual report of thiscompany signifies that Isentia group limited has retained earnings of around in the year 2017 incomparison to year 2016 that has around (Warren and Jones 2018). This denotes that theorganization has made additional net income, which has helped in retaining a greater portion ofits income even after the shareholders are rewarded with dividend payouts. Certain aspects ofretained earnings within Isentia group limited include net profit linked with the members of thecompany, dividends paid or given along with restatement effect. All such aspects fall under themajor components of equity within Isanti group limited.Answer 2Within business companies, several kinds of expenses can be observed that includesadministrative expenses, selling expenses along with many more and one such expense isconsidered to be tax expense. Moreover, tax expense is deemed to be a major liability for thecompany that is a part of the federal, state along with municipal governments of the nation. Thetax expense is calculated by subtracting all expense and costs from the revenue and interestexpense and tax rate are deducted from the remainder along with non-deductible items, tax assetsand liabilities (Arnold, Harris and Liu 2016). The annual report of Isentia Group Limited statesthat the profit after tax of the organization has been $77,613,000 in 2017, which was$66,583,000 in 2016. The Australian regulatory authority has set the standard corporate tax rate
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