Corporate Accounting | Sample Assignment
Added on 2021-06-17
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Running head: CORPORATE ACCOUNTINGCorporate AccountingName of the Student:Name of the University:Author’s Note:
CORPORATE ACCOUNTING1Table of ContentsCash Flow Statement.......................................................................................................................2Significant Items of the Cash Flow Statement............................................................................2Comparative Analysis of Three Classification of Cash Flow Statement....................................4Other Comprehensive Income Statement........................................................................................5Items reported as Other Comprehensive Income.........................................................................5Understanding of Items shown under Comprehensive Income...................................................6Reporting of Comprehensive Income..........................................................................................6Accounting for Income Tax.............................................................................................................7Current Tax Expenses..................................................................................................................7Tax rate Charged by the business................................................................................................7Deferred Tax Assets and Liabilities............................................................................................8Current Tax Assets and Liabilities..............................................................................................9Difference in Income tax expenses and Income Tax paid...........................................................9Review of the Tax policy of the business....................................................................................9Reference.......................................................................................................................................11Appendix........................................................................................................................................13
CORPORATE ACCOUNTING2Cash Flow StatementSignificant Items of the Cash Flow StatementThe cash flow statement is prepared by the company in order to show to the shareholdersof the company various activities which results in cash inflows and cash outflows in a business.The main purpose of Cash flow statement is to determine the firm’s liquidity position and thecash and cash equivalent balance at the end of the year (Reid and Myddelton 2017). For thepurpose of this assignment, Blackmores ltd has been selected and the financial statement ofBlackmores ltd is to be analyzed which will be discussed in the coming paragraphs.The cash flow statement of Blackmores ltd has been classified into three activities whichare cash from operating activities, cash from investing activities and cash from financingactivities. The important items which are included in cash from operating activities are revenuemade from the customers, payments made to suppliers and income tax. The revenue which iscollected from the people for the sales of goods generates cash which are recorded in the cashflow statement of the business. The revenue which is collected from the customers has slightlydecreased from 2016. The net revenue which the company has generated is $ 763,413,000 in2017 and it was $ 766,436,000 for the year 2016. Then there is a payment which are made to thesuppliers and employees of the business. The cash spent amounts to $ 668,103,000 for the year2017 which has increased from previous years. This signifies that the expenses which areexpenses of the company has increased. The income tax which is shown in the operatingactivities part of the cash flow statement reveals that the income tax which is shown is only partof the operating activities of the business which means that such is only the provision which thecompany expects the business will be incurring in as income tax during the year.
CORPORATE ACCOUNTING3The investing activities of the business which is shown in the cash flow statement refersto the various investments which are undertaken by thee management of the company during theyear. The significant items which are present in the investing activities of the business arepayments made for property, plant, equipment and intangibles which relates to the businesspurchasing the particular asset or making additions to the existing asset. The additions which aremade to the properties, plants and equipment have been the highest in 2017 which is shown as $14,567,000. Another significant item which is shown in the cash flow statement under investingactivity is interest received which means the amount of money received as interest for anyinvestment which has been undertaken by the company (Bhandari and Iyer 2013). The interestreceived in 2017 is shown to be $ 384000 which has fallen from the previous year.The financing activities of the business shows certain significant items which are loantaken or loan repaid during a particular year and the dividend which is paid by the company.Loan refers to the borrowings which are undertaken by the business for financing the activities ofthe business and using the same as capital for the business. In 2015 as shown in the financialstatements, the company repaid a significant amount of loan which is shown at $ 29,000,000. In2016 and 2017 the company took loan for the amount $ 11,357,000 and $ 23,727,000. The loantaken by the business is used for financing of the activities of the business. The dividends whichare paid by the business refers to sharing of profits which is generated by the business anddeclared as dividends during a particular period (Farshadfar and Monem 2013). The dividendwhich is paid by the management has increased during 2016 and 2017 which suggest that thecompany has issued more equity shares during 2016 and 2017.
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