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

This article discusses the cash flow statement, other comprehensive income statement, and accounting for corporate income tax in corporate accounting. It includes answers to various questions related to these topics. The subject is corporate accounting and the university or college is not mentioned.

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:...............................................................................................................................3
Other Comprehensive Income Statement:.................................................................................3
Answer to iii:..............................................................................................................................3
Answer to iv:..............................................................................................................................4
Answer to v:...............................................................................................................................4
Accounting for Corporate Income Tax:.....................................................................................5
Answer to vi:..............................................................................................................................5
Answer to vii:.............................................................................................................................5
Answer to viii:............................................................................................................................5
Answer to ix:..............................................................................................................................5
Answer to x:...............................................................................................................................6
Answer to xi:..............................................................................................................................6
Reference and Bibliography:......................................................................................................7

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Cash Flow Statement:
Answer to i:
There are three major segments in which the cash flow of the organisation is
distributed such as operating activities, investing activities, and financing activities. The
contents of the operating activities mainly comprise of receipts from customers, payment to
suppliers and employees, initial public offer fees paid, Income Tax paid, and option premium
paid. From the valuation of operating activities, it could be identified that only received from
customers, option premium paid and initial public offer fees paid has improved for the
organisation. However, Income Tax paid, payment to suppliers and employees has a
relatively declined further in 2017 in comparison to 2016 (Wisetechglobal.com 2018).
Moreover, the contents of investing activities many comprise of payment for
intangible assets, purchase of property plant and equipment, interest received, acquisition of
subsidiary net of cache quiet, and other investing and come. From the evaluation it could be
identified that payments to tangible assets purchase of property plant and equipment and
acquisition of subsidiaries net of cash acquired a relatively increased the expenses of the
company during 2017 as compared to 2016. on the contrary, the overall increment in interest
received income is seen while the other investing income also increased during the fiscal
year.
Lastly, the financing activities comprises of interest paid, repayment of Finance lease
liabilities, the payment of borrowings, dividends paid, dividend paid by subsidiary to non-
controlling interest, proceeds from issues of share, shares initial public offerings cost,
financing transaction cost and treasury shares acquired. From the evaluation of Financing
activities, it could be identified that the overall increment that was obtained during 2016, as

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net cash flow from financing activities was positive, while the same net cash flow was
negative during 2017. This directly indicated the possibility of high expenses conducted by
the company during the fiscal year. These expenses are relatively attached to lower
proceedings from issue of shares, repayment of Finance lease liability and dividend paid by
the organisation (Bhasin 2015).
Answer to ii:
From the overall evaluation it will be identified that operating activities has effectively grown
from the levels of 21,328,000 in 2015 to 54.929,000 in 2017. This is mainly conductor due to
the high receipts of customers that is generated by the organisation, while cash outflow as a
relatively the client. This has allowed the organisation to maintain an adequate positive net
cash flow from operating activities. From the valuation of net cash flow used in investing
activities it could be identified that your organisation has effectively Conducted Investments
throughout the three-year period. the value of net cash flow used in investing activities has
relatively increased from -31,378,000 in 2015 to -49,180,000. The increment indicated that
the organisation has effectively conducting investing activities for supporting its operation,
such as purchase of property plant and equipment. Lastly, the operations of net cash flow
from financing activities has relatively declined from the levels of 49,381,000 in 2015 to -
13,757,000. The decline in value selectively conducted due to the high cash outflow, while
low cash inflow from the operations of Financing activities (Wisetechglobal.com 2018).
Other Comprehensive Income Statement:
Answer to iii:
From the valuation of annual report, it will be identified that the other comprehensive
income listed in the financial statement directly includes exchange difference on translation

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of foreign operations, fair value of available for sale financial assets are they classified to
profit or loss, and net gains on available for sale financial assets.
Answer to iv:
The exchange difference on translation of foreign operations relate to the foreign
currency exchange conducted by the organisation. This type of transactions can have profit or
loss while converting the revenue from different currency to home currency. This type of
comprehensive income is a normal approach used by Multinational companies. The fair value
of available-for-sale financial assets be classified also falls under the other comprehensive
income category. This type of comprehensive income or loss is relatively conducted when
conducting of fair value on the financial assets. The revaluation method directly forces the
organisation to reduce or increase value of the asset based on market prices. Lastly, the net
gain on available-for-sale of financial assets is relatively conducted in the comprehensive
income section, which directly indicates the profit that could be obtained by the company on
the assets that is available for sales (Warren and Jones 2018).
Answer to v:
The items reported in the other comprehensive income statement is not reported in the
income statement of the organisation, as it comprises of activities which is not been
conducted. in addition the expenses or incomes that is listed in the comprehensive income is
in anticipation by the company which will incur in sometimes. The net gain on available for
sale financial assets directly indicate that the sales have not be conducted but will incur in
future. In addition the activities listed in the other comprehensive income is not the actual
operations of the organisation, whereas it is a secondary activity, which is been conducted on
part of the organisation.

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Accounting for Corporate Income Tax:
Answer to vi:
The overall tax expense that is conducted by the company in the current financial year
is at the levels of 11,972,000 (Wisetechglobal.com 2018).
Answer to vii:
From the valuation it can be identified that the tax rate time used by the organisation
is not like the corporate tax rate. The company has corporate tax rate is at the levels of 30%,
while the income tax is relatively at the levels of 27.6%. this measure is relatively conducted
due to the different types of taxation inputs and outputs conducted by the organisation.
Answer to viii:
The deferred tax assets are relatively at the level of 1,554,000 in 2017, whereas there
is no value of deferred tax assets in 2016. The different access a true value is a relatively used
by the organisation to effectively reduce the taxable income of the company. This reduction
in deferred tax relatively helps in identifying the overall reduction and Taxes that is incurred
by the company over time (Tahat, Omran and Dunne 2017).
Answer to ix:
The company directly holds current tax liability and current tax receivables in their
financial records, which is used to reduce to the Future taxable income of the organisation.
this is the main reason behind the disparity between the income tax payable and Income Tax
expenses of the organisation. the use of current tax liability, current tax Assets and deferred
tax directly reduces the overall income tax payable of the organisation which is not in lieu
with the actual tax of the company.

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Answer to x:
There is major difference between the income tax paid and Income Tax expenses
listed in the financial statement, which is due to the inconsistency in the overall cash inflows
of the organisation. The income tax expense is a relatively a comprehensive value for all the
values that is generated by the company during the fiscal year, while the income tax paid
relatively depicts the overall payments that has been received by the company and on which
the taxes being paid. This relevant difference is due to the cash generation capability of the
company, which is essential to determine the relevant text that is not been paid by the
company
Answer to xi:
The interesting part that would be identified from the treatment of taxes its
implementation, where the tax value that is paid by the company is relatively on those
incomes which has been incurred. This relatively allows the company to minimise any kind
of excessive cash outflows that might be conducted by its operations. Therefore, it could be
understood that companies with the help of adequate tax treatment is able to minimize any
kind of excessive cash outflow and conduct adequate Income Tax payment when and as they
receive payments from the clients (Ijiri 2018).

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Reference and Bibliography:
Bhasin, M.L., 2015. Corporate accounting fraud: A case study of Satyam Computers Limited.
Harris, P., Kinkela, K., Arnold, L.W. and Liu, M., 2017. Corporate Accounting Malfeasance
and Financial Reporting Restatements in the Post-Sarbanes-Oxley Era.
Heese, J., Khan, M. and Ramanna, K., 2015. Political Standards: Corporate Interest,
Ideology, and Leadership in the Shaping of Accounting Rules for the Market
Economy. Journal of Accounting & Economics, 64(20), pp.2-3.
Ijiri, Y., 2018. An Introduction to Corporate Accounting Standards: A Review. Accounting,
Economics, and Law: A Convivium, 8(1).
Sapozhnikova, N.G. and Mohammed, E.B.K., 2014. Informatsiya ob ekologicheskoi
deyatel’nosti v korporativnom uchete i otchetnosti [Information on environmental
performance in corporate accounting and reporting]. Mezhdunarodnyi bukhgalterskii uchet=
International Accounting, (15), pp.22-29.
Tahat, Y., Omran, M. and Dunne, T., 2017. Development of Accounting Regulations and
Practices in Kuwait: An Analytical Review. Journal of Corporate Accounting &
Finance, 28(6), pp.14-28.
Warren, C.S. and Jones, J., 2018. Corporate financial accounting. Cengage Learning.
Wisetechglobal.com. (2018). Logistics Software, Supply Chain Execution Software |
WiseTech Global . [online] Available at: http://www.wisetechglobal.com/ [Accessed 29 May
2018].