Corporate Accounting: Cash Flow Statement, Other Comprehensive Income Statement, and Accounting for Corporate Income Tax

This article provides a comprehensive guide on corporate accounting, covering cash flow statement, other comprehensive income statement, and accounting for corporate income tax. The article provides insights on Qantas Airways' financial statements and includes a reference and bibliography section.

Running head: CORPORATE ACCOUNTING
Corporate Accounting
Name of the Student:
Name of the University:
Authors Note:

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Table of Contents
Cash Flow Statement:................................................................................................................2
Answer to i:................................................................................................................................2
Answer to ii:...............................................................................................................................2
Other Comprehensive Income Statement:.................................................................................3
Answer to iii:..............................................................................................................................3
Answer to iv:..............................................................................................................................3
Answer to v:...............................................................................................................................4
Accounting for Corporate Income Tax:.....................................................................................4
Answer to vi:..............................................................................................................................4
Answer to vii:.............................................................................................................................4
Answer to viii:............................................................................................................................5
Answer to ix:..............................................................................................................................5
Answer to x:...............................................................................................................................5
Answer to xi:..............................................................................................................................5
Reference and Bibliography:......................................................................................................7

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Cash Flow Statement:
Answer to i:
The Cashflow statement of Qantas is segregated in three different segments, which
contains financing activities, investing activities, and operating activities. The identified
activities mainly help in understanding the cash outflow and inflow of the organisation during
the fiscal year. The operating activities mainly comprises interest received, interest paid,
divided received, income tax paid, cash generated from operations, cash payments to
employees for redundancies and related costs and cash payments to employees for Wage
Freeze bonus and Record Results bonus. In addition, cash flow from investing activities
comprises purchase of PPEI (Property, Plant, Equipment, and Intangible assets), net loan
repayments, proceeds from PPEI disposals and aircraft operating lease financing.
Furthermore, the financing activities that is included in the statement is payments for share
buyback, capital return, treasury shares, borrowings, repayment of borrowings, and dividends
paid (Investor.qantas.com, 2018).
Answer to ii:
The operating activities of Qantas has mainly improved over time, where during 2015
the overall values of the operating activities was at the levels of 2,492 million. In addition,
the vales have charged using 2017, where the values have inclined to 2,704 million, which
indicates the positive attributes of the organisation. Moreover, the value of investing activities
has future deteriorated in 2017, as compared to 2015. This indicates the excessive investment
conducted by the company to secure future performance. On the other hand, the cash flow
from investing activities has mainly improved from -1,218 million in 2015 to -854 million in
2017. This mainly reflects the decline in cash outflow of the organisation during the period of

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three fiscal years in financing activities. However, the overall decline in net cash flow
decrease in 2017 is witnessed by the company due to the excessive decline in its cash inflow
(Investor.qantas.com, 2018).
Other Comprehensive Income Statement:
Answer to iii:
The items reported in comprehensive measure mainly indicate the income or losses,
which could be incurred by the company in near term. The other comprehensive income
value mainly contains the following components for Qantas Airways.
 Effective portion of changes in fair value of cash flow hedges, net of tax
 Transfer of hedge reserve to the Consolidated Income Statement, net of tax
 Recognition of effective cash flow hedges on capitalised assets, net of tax
 Net changes in hedge reserve for time value of options, net of tax
 Foreign currency translation of controlled entities
 Foreign currency translation of investments accounted for under the equity method
 Share of other comprehensive income/(loss) of investments accounted for under the
equity method
 Defined benefit actuarial gains/(losses), net of tax (Investor.qantas.com, 2018).
Answer to iv:
The components of other comprehensive income comprise expenses, which might
have an impact on the operations of the organisation. In addition, the Effective portion of
changes in fair value of cash flow hedges, net of tax, Transfer of hedge reserve to the
Consolidated Income Statement, net of tax, Recognition of effective cash flow hedges on

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capitalised assets, net of tax, Net changes in hedge reserve for time value of options, net of
tax, Foreign currency translation of controlled entities, Foreign currency translation of
investments accounted for under the equity method, Share of other comprehensive
income/(loss) of investments accounted for under the equity method, Defined benefit
actuarial gains/(losses), net of tax.
Answer to v:
The components of other comprehensive income statement are mainly not reported in
the income statement, as the overall activities is not achieved. The income and expenses has
not been incurred by the company, which is relevantly not realised by the organisation during
the fiscal year. Moreover, net of tax expenses and income for the organisation mainly
minimises the level of cash outflow incurred by the company. Furthermore, the components
in the comprehensive income is not the primary activity of the organisation (Wahlen,
Baginski and Bradshaw, 2014).
Accounting for Corporate Income Tax:
Answer to vi:
After evaluating the annual report of Qantas Airways the overall tax expense incurred
by the company during the fiscal year of 2017 is mainly at the levels of 328 million.
Answer to vii:
The calculation of the actual tax expenses and tax rate is relevantly different in case
for the organisation, where the actual tax expense is not at the level of 30%, which is
considered the corporate tax rate. In addition, from the evaluation the overall tax rate that can
be calculated from the overall calculation is at the levels of 27.7%.

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Answer to viii:
The overall deferred tax assets value of Qantas Airways is main null during the 2017
fiscal year, while the deferred liabilities of the company amounts to 353 million during the
fiscal year. The increment in overall deferred tax liability mainly indicates the relevant tax,
which the company is liable to pay to the government. Hence, the tax liability increases the
overall value of liabilities of the organisation (Grant, 2016).
Answer to ix:
From the evaluation of overall annual report, Qantas Airways does not have any kind
of current tax liabilities or current tax receivable involved in their annual report, which could
be disclosed in the balance sheet. Moreover, the income tax payable of the organisation is
mainly not same as the income tax expenses incurred by the organisation. The company has
overall tax payable has increased over time, which is directly increasing the level of liability
of the organisation (Rose, 2017).
Answer to x:
The difference in overall income tax expenses and income tax paid is relevantly
higher, which could be identified from the financial statement of the Qantas Airways. The
income tax expense is at the levels of 328 million, while the overall income tax paid is at the
levels of 4 million. The difference in overall income tax expenses and income tax paid is due
to the cash paid on taxes by the organisation during the fiscal year.
Answer to xi:
The tax treatment is mainly identified to be an interesting part, which helps in
understanding the level of evaluation that needs to be conducted by the organisation during
the fiscal year. The increment in the values of the organisation is mainly at the levels of tax

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treatment, which might help in understanding the level of valuation, which could be
generated from operations. the adequate tax treatment might help in improving the level of
excessive cash outflows that could be conducted on certain income tax payment of the
organisation (Lodhia, 2015).

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Reference and Bibliography:
Ball, R., Li, X. and Shivakumar, L., 2015. Contractibility and transparency of financial
statement information prepared under IFRS: Evidence from debt contracts around IFRS
adoption. Journal of Accounting Research, 53(5), pp.915-963.
Belal, A.R., 2016. Corporate social responsibility reporting in developing countries: The
case of Bangladesh. Routledge.
Frias‐Aceituno, J.V., Rodríguez‐Ariza, L. and Garcia‐Sánchez, I.M., 2014. Explanatory
factors of integrated sustainability and financial reporting. Business strategy and the
environment, 23(1), pp.56-72.
Game, C.S., Cullen, L.M. and Brown, A.M., 2018. Accountability and financial statement
presentation of early Western Australian banks: 1837–1880. Accounting History,
p.1032373218759972.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons.
Gregory, K.P., Matthew, S.M. and Baguley, J.A., 2018. Analysis of the costs of veterinary
education and factors associated with financial stress among veterinary students in
Australia. Australian veterinary journal, 96(1-2), pp.11-16.
Halligan, J., 2017. Reform design and performance in Australia and New Zealand.
In Transcending New Public Management (pp. 55-76). Routledge.
Investor.qantas.com. 2018. Qantas Investors | Investor Centre. [online] Available at:
http://investor.qantas.com/investors/?page=annual-reports [Accessed 18 Jun. 2018].

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Lodhia, S., 2015. Exploring the transition to integrated reporting through a practice lens: an
Australian customer owned bank perspective. Journal of Business Ethics, 129(3), pp.585-
598.
Moher, D., Shamseer, L., Clarke, M., Ghersi, D., Liberati, A., Petticrew, M., Shekelle, P. and
Stewart, L.A., 2015. Preferred reporting items for systematic review and meta-analysis
protocols (PRISMA-P) 2015 statement. Systematic reviews, 4(1), p.1.
Rose, N., 2017. Community food hubs: an economic and social justice model for regional
Australia?. Rural Society, 26(3), pp.225-237.
Sun, L. and Farooque, O.A., 2017. An Exploratory Analysis of Earnings Management Before
and after the Governance and Disclosure Regulatory Changes in Australia and New Zealand.
Wahlen, J., Baginski, S. and Bradshaw, M., 2014. Financial reporting, financial statement
analysis and valuation. Nelson Education.
Wang, C., 2014. Accounting standards harmonization and financial statement comparability:
Evidence from transnational information transfer. Journal of Accounting Research, 52(4),
pp.955-992.
Warren, C.S. and Jones, J., 2018. Corporate financial accounting. Cengage Learning.
Zeff, S.A., 2016. Forging accounting principles in five countries: A history and an analysis
of trends. Routledge.