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Corporate Accounting : Assignment (Solved)

   

Added on  2020-10-05

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CORPORATEACCOUNTING

EXECUTIVE SUMMARYCorporate accounting is known for special branch of accounting which developed bycompanies in order to measure their financial capabilities. The present assessment is developedto analyse financial capabilities of companies. Such companies are Clean Seas Seafood limited,Bellamys Australia limited and Elders limited. Calculation of change in equity is to be preparedin this report for reflecting every item of equity in order to develop effective understanding ofchange over past three years with comparative analysis of debt and equity. Lastly, calculation ofcash flow is provided.

TABLE OF CONTENTSEXECUTIVE SUMMARY.............................................................................................................2INTRODUCTION...........................................................................................................................4EQUITY AND LIABILITY............................................................................................................41. Calculation of each item of equity with understanding of three chosen companies .........42. Calculation of each item of liability with understanding of three chosen companies........63. Comparative analysis of debt and equity of three chosen companies................................8CASH FLOW STATEMENT..........................................................................................................94. Explanation of each item of cash flow with understanding of three companies................95. Calculation of cash flow statement with understanding of three chosen companies.......106. Comparative analysis of chosen three companies............................................................11OTHER COMPREHENSIVE INCOME STATEMENT..............................................................117. Explanation of Items which stated in other comprehensive income for each company. .118. Explanation of reason for not reporting items in income statement.................................129. Calculation of other comprehensive income statements to evaluate performance ofmanagers of companies........................................................................................................1210. Explanation of including OCI for measuring performance of managers of company...13ACCOUNTING FOR CORPORATE INCOME TAX..................................................................1311. Tax expenses which shown in financial statements of selected companies...................1312. Calculation of effective tax rate of selected companies.................................................1313. Comment on deferred tax assets and liabilities which recorded in balance sheet of selectedcompanies.............................................................................................................................1414. Evaluation of changes in deferred tax assets/ liabilities.................................................1415. Calculation of cash tax amount of all three companies using book tax, change in deferredtax asset and liabilities..........................................................................................................1516. Calculation of the cash tax rate of all three companies..................................................1617. Difference between cash tax rate and book tax rate.......................................................16CONCLUSION..............................................................................................................................17REFERENCES..............................................................................................................................18

INTRODUCTIONCorporate accounting is known for special branch of accounting which develop forpreparing accounting statements of company such as preparation of final accounts, cash flowstatement. It is also used to analyse and interpret financial results and for accounting ofamalgamation, absorption, etc. The present assessment is developed to analyse financialcapabilities of companies. Such companies are Clean Seas Seafood limited which operates inaquaculture industry through 2 segments that is Finfish sales and Tuna operations. BellamysAustralia limited which deals in producing and marketing organic food and formula of productsfor babies, and Elders limited which deals in providing products based on agriculture business.Firstly, calculation of change in equity is to be prepared in this report for reflecting everyitem of equity in order to develop effective understanding of change over past three years withcomparative analysis of debt and equity. Further, calculation of cash flow of the selectedcompanies will be prepared in order to comparatively analyse financial capabilities oforganisations. Lastly, in this assessment accounting of effective cash tax rate will be provided inorder to develop better understanding of performance of companies in business market.EQUITY AND LIABILITY1. Calculation of each item of equity with understanding of three chosen companiesParticulars20162017% change in201720172018% change in2018Clean seas seafood limitedShare Capital1577361659985%16599818234510%Share rights reserve0172100%172661284%accumulated losses-114819-1146170%-114617-111237-3%Total Equity429175155320%515537176939%Items of changes in equity are:Share capital:which is known as part of capital of company that arise because of issue of shares.Share rights reserves:which is a dividend of subscription rights in order to buy additionalsecurities in company.Accumulated losses: which reported as negative retained earnings in balance sheet.From the above calculation, it is analysed that in 2017, Clean seas seafood ltd. hasreduced its accumulated losses with (114617) and increase its share capital with 165998. In

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