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Corporate Accounting | Assignment

   

Added on  2020-04-01

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Running head: CORPORATE ACCOUNTINGCorporate accountingName of the studentName of the universityAuthor note

1CORPORATE ACCOUNTINGTable of Contents(i)Item of equity and explanation........................................................................................2(i)Tax expenses of the company.........................................................................................4(ii)Difference in company tax rate and tax expenses...........................................................5(iii)Deferred tax assets or liabilities......................................................................................5(iv)Current tax or income tax payable..................................................................................6(v)Difference in income tax expenses and income tax paid................................................7(vi)Confusing, interesting, difficult or surprising fact with regard to tax treatment of thecompany.....................................................................................................................................8Reference..................................................................................................................................10

2CORPORATE ACCOUNTINGSpark Infrastructure is the fund for specialist infrastructure and the main objective ofthe company is investing in the regulated utility infrastructure within Australia as well as inoverseas. The products and services of the company includes the gas and electricitytransmission and distribution, sewerage assets, regulated water that offers stable cash flowsand comparatively low risks and it facilitates payment to the investors along with thepotential long-term growth. The vision of the company is to offer long-term, stable andattractive returns complied with the market expectations and risk profile (Spark Infrastructure2018). Further, it seeks to establish the diversified portfolio with regard to regulated utilityinfrastructure assets and continuing to be in the lead position under the Australianinfrastructure investment fund. Further, the values upon which the company is maintaining itsgrowth are fairness, honesty, maximising the value of the security holder and maintenance ofthe high standards for corporate governance.(i)Item of equity and explanationFrom the annual report of the company for the year ended 30th June 2016, it has beenrecognized that the equity of the company has the following items –Issued capital – issued capital is the number of shares capital that is issued to theshareholders. The issued capital is the authorised capital of the company and theunused part is known as unissued capital. Further it is face value of shares that isissued to the shareholders. The share premium and issued share capital represent theinvested capital of the shareholders (Dhaliwal et al. 2016). The issued capital is alsoknown as the subscribed share capital or subscribed capital. The share capital valuechanges with the issuance of new shares to new or existing shareholders. Further, thecompany has the option of redeeming or purchasing the shares that will result into thechanges in the value of subscribed capital.

3CORPORATE ACCOUNTINGReserves – reserves in the balance sheet is used to refer the shareholder’s equity and itis generated through various sources. While the reserves are created throughshareholder’s contribution, they are in the form of legal reserve fund or sharepremium (Bodie, Kane and Marcus 2014). Reserve may include all the items exceptthe share capital that is listed under equity section of the company’s financialstatement. However, the reserves are of 2 types – revenue reserve and capital reserve.Retained earnings – it is percentage of the net earnings that is not distributed asdividends and retained by company for reinvesting in the core business or paying-offthe debt. The retained earnings is recorded as shareholder’s equity under the balancesheet (Hutchens and Rego 2013). The retained earnings are reported at the closing ofeach accounting period as accumulated amount of the company’s prior earning afterdeducting the amount of dividend. However, the retained earnings of the company canbe negative or positive. (Refer page 41 of annual statement for the year ended 30th June 2016)Changes in each item of the equityEquity items30th June 2016 ($’000)30th June 2015 ($’000)Issued capital11,99,11913,03,404Reserves(18,231)(17,404)Retained earnings 956,396870,355Reasons of changes –

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