Corporate Accounting: BHP Billiton Financial Report Analysis

Running head: CORPORATE ACCOUNTING
Corporate Accounting
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1CORPORATE ACCOUNTING
Table of Contents
Introduction:...............................................................................................................................2
Part A:........................................................................................................................................2
Answer to 1 A:.......................................................................................................................2
Qualitative characteristics of the relevance and comparability:............................................2
Disclosing environmental reporting practices:.......................................................................4
Explanation of Disclosure of opinion:.......................................................................................6
Recommendations to top management to strengthen compliance in future reporting:..............7
Answer to Part B:.......................................................................................................................7
Answer to question 1:.............................................................................................................7
Answer to question 2:.............................................................................................................8
Answer to question 3:.............................................................................................................9
Answer to question 4:.............................................................................................................9
Answer to question 5:...........................................................................................................10
Conclusion:..............................................................................................................................10
Reference List:.........................................................................................................................12

2CORPORATE ACCOUNTING
Introduction:
In the corporate accounting analysing the financial reports are considered as the vital
element. The financial statement that are provided by the company acts as the tool for
measuring the annual performance of the company. The statement of financial position,
income statement and cash flow statement acts the vital medium of providing the
shareholders with the necessary information regarding the overall performance of the
organization (Crowther 2016).
The present report is based on the understanding of the corporate reporting
environment of the BHP Billiton. The report would be assessing the financial information’s
of the company presented through the information disclosure and would also provide the top
management with the recommendations relating to the compliance disclosure. The report
would further focus on the adjustment related to the acquisition provided in the annual report
of BHP Billiton.
Part A:
Answer to 1 A:
Qualitative characteristics of the relevance and comparability:
The qualitative characteristics of an organizations financial statement is largely
consisting of the comparability, consistency and dependability (Kareiva et al. 2015). The
report presently emphasis on the BHP Billiton comparability and relevance of the annual
reports.
Relevance: The element of relevance of financial report provides that the financial
statements should be relevant to the numerous kinds of needs of an organizations shareholder.
The statement of financial position serves as tool in decision making for the stakeholders and
requires a due care in preparing the financial statements (Boyd and Golden 2016). Relevant

3CORPORATE ACCOUNTING
information contained in the financial statements should not be omitted as this may result in
negative consequences. For BHP financial statements the payment of dividends, total income
and net amount of cash flow are held as important aspects of the company. An illustrations of
the example has been provided below;
Table 1: Table representing Dividend Paid
(Source: BHP Billiton 2018)
Cash Flow Statement:
Table 2: Table representing Dividend Paid
(Source: BHP Billiton 2018)