Define Corporate Accounting| Assignment

Running head: CORPORATE ACCOUNTING
CORPORATE ACCOUNTING
Name of the Student
Name of the University
Author Note:

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CORPORATE ACCOUNTING
Executive Summary
The purpose of the study is to analyze the importance of financing in the rapid growth and
expansion of the telecommunication industry and venture capital firm. It focuses on the sources
and the use of the funding by the two listed Australian companies which are Telstra and IBM-
Australia. A critical examination of both companies has been done concerning the merits and
shortcomings of the use of funds and the use of AASB standards.

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CORPORATE ACCOUNTING
Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................4
Sources of Fund...............................................................................................................................4
Evolution..........................................................................................................................................6
Merits and Shortcomings.................................................................................................................7
Merits and Demerits:...................................................................................................................7
Types of Liabilities..........................................................................................................................9
AASB 137......................................................................................................................................11
Asset Measurement........................................................................................................................13
Measurement Basis of Telstra...................................................................................................13
Measurement basis of IBM:.......................................................................................................14
Conclusion.....................................................................................................................................15
Reference.......................................................................................................................................16

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CORPORATE ACCOUNTING
Introduction
The report focuses on the different sources of funds raised by companies and how it
benefits the company in its evolution. Maintaining a dominant position in the Australian
telecommunication market, Telstra is competing in over 20 countries. Founded in 1975, it is the
largest and the fastest mobile network in Australia with over $17 million services and is facing
firm competition from Optus. This telecommunication company provides a wide range of
communication and digital content service that are easy to use (Telstra.com.au. 2020). On the
other hand, IBM Australia Ltd. offers business consultancy, IT services, security services and
business strategy services. It also manufactures services and products related to information
technology (Ibm.com. 2020). In this report, an analysis of both the company’s performance has
been made based on their performance in the last three years. The report provides information
found on the factual, quantitative data which are sourced from the latest financial accounts of the
company.
Discussion
Sources of Fund
Telstra
There are various sources of raising finance for the business some of them are retained
earnings, equity financing, debt financing, term loans, venture funding, etc (Creamer,
Dobrovolsky, and Borenstein, 2015). The Australian telecommunication company, Telstra, is
financed by the following sources (Telstra.com.au. 2020):
 Retained Earnings: It is the essential source of finance and the volume of finance through
retained earnings depends on the performance of the company (Hogan, Hutson and