Corporate Accounting: Comparative Analysis of Myer Holdings Limited and Kathmandu Holdings Limited

The report covers a comparative analysis of debt and equity position, cash flow statement and the comprehensive income statement of Myer Holdings Limited and Kathmandu Holdings Limited for three years. It also discloses deferred tax assets or liabilities, tax expenses with effective tax rate of both the companies.

RUNNING HEAD: CORPORATE ACCOUNTING
CORPORATE ACCOUNTING

CORPORATE ACCOUNTING 1
EXECUTIVE SUMMARY
The assignment covers two listed companies of Australia named “Myer Holdings
Limited” (ASX: MYR) and “Kathmandu Holdings Limited” (ASX: KMD). Both companies
belong to Retail industry. Myer Holdings limited is one of the largest departmental store
group in Australia. It offers wide range of clothing, accessories, footwear, cosmetics,
fragrances for women, men and children, homewares, toys and travel goods etc. The
company was founded by Sidney Myer in 1900. The Kathmandu holdings limited is also a
retail chain dealing in outfits for adventure purpose, travel gears and equipment. The
Kathmandu holdings limited is founded by Jan Cameron and John Pawson in year 1987. This
report will provide the comparative analysis of debt and equity position, cash flow statement
and the comprehensive income statement of both selected companies for three years. Further
the report also discloses deferred tax assets or liabilities, tax expenses with effective tax rate
of both the companies. In addition to this, cash tax amount along with cash tax rate is also
disclosed. Thus the report ends up with the conclusion and the references used for both
companies.

CORPORATE ACCOUNTING 2
Contents
INTRODUCTION......................................................................................................................3
OWNERS EQUITY...............................................................................................................4
CASH FLOW STATEMENT................................................................................................8
OTHER COMPREHENSIVE INCOME STATEMENT.....................................................14
ACCOUNTING FOR CORPORATE INCOME TAX........................................................16
CONCLUSION........................................................................................................................20
REFERENCES.........................................................................................................................20

CORPORATE ACCOUNTING 3
INTRODUCTION
MYER HOLDINGS LIMITED
The Myer Holdings Limited was founded in the year 1900 by Sidney Myer. The Myer
is one of the largest Australian department store chain group. It is listed in Australian stock
exchange with the ticker name as ASX: MYR. It is engaged in retailing of women wear, men
wear and children wear, homewares, toys, accessories, footwear, beauty products, furniture,
video games, cosmetics, fragrance, travel goods and general merchandises (Myer, 2018). It is
operated in approximately 60 retail stores in Australia with approximately more than five
million members (Myer, 2018). There are some major brands of Myer such as Topshop Top
man, Seed, Jack and Jones, French Connection, Mimco etc. The company head office is
situated in Melbourne, Australia. The CEO of the company is John King and approximately
more than 14000 people have employed in the company and more than 1200 suppliers (Myer,
2018).
KATHMANDU HOLDINGS LIMITED
The Kathmandu Holdings limited was founded in the year 1987 by Jan Cameron and
John Pawson. The Kathmandu holdings was also a retail chain group dealing in apparels
related to travelling and adventure outdoor and related tools. It is listed in Australian stock
exchange with the ticker name as ASX: KMD (Kathmandu, 2018). The company mainly
operates from New Zealand, Australia, Germany and United Kingdom. The Australia has
approximately 115 retail stores. The company head office is situated in New Zealand.
Approximately more than 2000 people have employed in the company. Kathmandu is with
partnership with Australian Himalayan Foundation group. The key people of the company are
Xavier Simonel (CEO) and Reuben Casey (COO) (Kathmandu, 2018).

CORPORATE ACCOUNTING 4
In this assignment both Companies “Myer Holdings limited” and “Kathmandu Holdings
limited” are considered. In this report, comparative analysis of debt and equity portion, cash
flow statement of all the three categories of cash flows (operating activities, investing
activities and financing activities) for three past three years that 2017, 2016 and 2015 is
computed. In addition to this, items reported in other comprehensive income statement are
disclosed along with the comparative analysis. Moreover, accounting for income tax is
explained by disclosing tax expenses and the effective rate of income tax. Also cash tax rate
is computed with the disclosure of cash tax amount.
OWNERS EQUITY
i. Each item of equity:
Myer Holdings Limited
(Annual Report, 2017; 2016).

CORPORATE ACCOUNTING 5
 Dividend paid by the company during the year is included in the statement of
changes in equity. From the above consolidated statement of changes in
Equity, it is observed that dividend paid by the company in 2017 was $
49276000 whereas in 2016 dividend paid was $ 16426000 this means dividend
was increased by $ 32850000 in current financial year (Myer, 2017; 2016).
 Net profit for the period is included in the statement of changes in equity.
From the above consolidated statement of changes in Equity, it is observed
that in 2016 net profit was $ 60543000 whereas in 2017 net profit was only $
11939000 which means net profit was declined by 80% in 2017. This might
due to decrement in sales value in 2017 and also restructuring costs and lease
expenses of the company has increased in 2017 from 2016 (Myer, 2017;
2016).
 Total comprehensive income for the period mentioned was $ 45836000 in
2016 whereas in 2017 it was mentioned $12815000 (Myer, 2017; 2016). The
reason for such difference in both years is due to net profit was very less in
2017 in comparison to 2016.
Kathmandu Holdings Limited

CORPORATE ACCOUNTING 6
(Annual Report, 2017; 2016).
 The dividend paid was reported in the statement of changes in equity. From the above
consolidated statement of changes in Equity, it is observed that dividend paid by the
company in 2017 was $ 24179000 whereas in 2016 dividend paid was $ 16119000
this means dividend was increased by $ 8060000 in current financial year
(Kathmandu, 2017; 2016).
 From the above table, it is seen that profit after tax is reported in consolidated
statement of changes in Equity. The statement reported profit after tax in 2016 was

CORPORATE ACCOUNTING 7
$33521000 whereas in financial year 2017 the same was reported by $38039000. This
shows an increment in net profit from the past year by 13.47%. The reason might due
to increment in sales revenue in 2017 in comparison to 2016 and decrement in finance
expenses (Kathmandu, 2017; 2016).
 Total comprehensive income for the period mentioned was $ 418000 in 2017 whereas
in 2016 it was mentioned ($22275000). The reason for such difference in both years is
due losses in foreign currency translation reserve and cash flow hedge reserve
(Kathmandu, 2017; 2016).
ii. Comparative analysis:
Myer Holdings limited
Particulars
2017
($'000)
2016
($'000)
$
change
%
change
LIABILITIES
Current Liabilities
Trade and other payables 379740 400590 -20850 -5%
Provisions 87295 94228 -6933 -7%
Deferred Income 9817 10812 -995 -9%
Derivative financial instruments 7944 7127 817 11%
current tax liabilities 1627 7033 -5406 -77%
Other liabilities 591 795 -204 -26%
Total current liabilities 487014 520585 -33571 -6%
Non-current liabilities
Borrowings 143367 147273 -3906 -3%
Provisions 13821 19754 -5933 -30%
Deferred Income 75927 69702 6225 9%
Deferred tax liabilities 84574 88444 -3870 -4%
Derivative financial instruments 958 2819 -1861 -66%
Total non-current liabilities 318647 327992 -9345 -3%
Total liabilities 805661 848577 -42916 -5%
Net Assets 1072868 1107765 -34897 -3%
EQUITY
Contributed Equity 739239 739338 -99 0%
Retained Earnings 342146 379483 -37337 -10%
Reserves -8607 -11056 2449 -22%
Total Equity 1072778 1107765 -34987 -3%

CORPORATE ACCOUNTING 8
Kathmandu Holdings limited
Particulars
2017
($'000)
2016
($'000)
$
change
%
change
LIABILITIES
Current Liabilities
Trade and other payables 56735 51084 5651 11%
Derivative financial instruments 7034 7529 -495 -7%
current tax liabilities 3475 1212 2263 187%
Total current liabilities 67244 59825 7419 12%
Non-current liabilities
Derivative financial instruments 265 604 -339 -56%
Interest bearing liabilities 10431 43691 -33260 -76%
Deferred tax 34027 33247 780 2%
Total non-current liabilities 44723 77542 -32819 -42%
Total liabilities 111967 137367 -25400 -18%
Net Assets 327100 311683 15417 5%
EQUITY
Contributed Equity 200209 200191 18 0%
Reserves -23002 -24541 1539 -6%
Retained Earnings 149893 136033 13860 10%
Total Equity 327100 311683 15417 5%
CASH FLOW STATEMENT
iii. Each item of cash flow statement:
1. Cash flows from operating activities:
Myer Holdings Limited
 Receipts from customers: This means that the company has collected its
receivables from external parties. External parties mean customers, banks,
debtors etc. This item will add to the cash flows from operating activities. In
this case, receipts from customers in 2017 was $2931853000 whereas in 2016
it was $3101149000. This is slightly decreased from past year by 5.5% (Myer,
2017; 2016).

CORPORATE ACCOUNTING 9
 Payments to suppliers and employees: This means that the company has paid
to suppliers for buying of inventories, other products. Further payments are
also made for operating expenses such as salaries and wages to employees etc.
This item will reduce from the cash flows from operating activities. In this
case, payments to suppliers and employees in 2017 was $2744651000 whereas
in 2016 it was $2915467000. This is also slightly decreased from past year by
5.9% (Myer, 2017; 2016).
 Interest Paid: Interest paid are decreased from cash flow from operating
activities. In this case, company had reported $ 15894000 and $ 10165000 in
2016 and 2017 respectively. In other words, payment of interest is decreased
in current year by $ 5729000 (Myer, 2017; 2016).
 Tax paid: This item is decreased from cash flow from operating activities. In
this case, company had reported $ 20369000 and $ 27759000 in 2016 and
2017 respectively. In other words, payment of tax is increased in current year
by $ 7390000 (Myer, 2017; 2016).
Kathmandu Holdings Limited
 Receipts from customers: This means that the company has collected its
receivables from external parties. External parties mean customers, banks,
debtors etc. This item will add to the cash flows from operating activities. In
this case, receipts from customers in 2017 was $444100000 whereas in 2016 it
was $424182000. This is slightly increased from past year by 4.7%
(Kathmandu, 2017; 2016).
 Payments to suppliers and employees: This means that the company has paid
to suppliers for buying of inventories, other products. Further payments are
also made for operating expenses such as salaries and wages to employees etc.

CORPORATE ACCOUNTING 10
This item will reduce from the cash flows from operating activities. In this
case, payments to suppliers and employees in 2017 was $360122000 whereas
in 2016 it was $336968000. This is also slightly increased from past year by
6.9% (Kathmandu, 2017; 2016).
 Interest Paid: Interest paid are decreased from cash flow from operating
activities. In this case, company had reported $ 2829000 and $ 2162000 in
2016 and 2017 respectively. In other words, payment of interest is decreased
in current year by $ 667000.
 Tax paid: This item is decreased from cash flow from operating activities. In
this case, company had reported $ 16688000 and $ 14571000 in 2016 and
2017 respectively. In other words, payment of tax is decreased in current year
by $ 2117000 (Kathmandu, 2017; 2016).
2. Cash flows from investing activities:
Myer Holdings Limited
 Payments for property, plant and equipment: This means the company has
acquired the property, plant and equipment in the accounting period. Thus, in
2017, the company had reported $ 88452000 whereas in 2016 it was reported
with $ 40479000. This signifies that the company has purchased more tangible
assets in the current year in comparison to last year (Myer, 2017; 2016).
 Payments for intangible assets: This means that the company had paid $
11891000 and $ 24217000 in 2016 and 2017 respectively for the acquisition of
intangible assets such as goodwill, trademark, patent, copyrights etc.
Kathmandu Holdings Limited

CORPORATE ACCOUNTING 11
 Purchase of property, plant and equipment: This means the company has
acquired the property, plant and equipment in the accounting period. Thus, in
2017, the company had reported $ 11419000 (Kathmandu, 2017; 2016)
whereas in 2016 it was reported with $ 20729000. This signifies that the
company has purchased less property, plant and equipment in the current year
in comparison to last year.
 Purchase of intangible assets: This means that the company had paid $
2467000 and $ 1857000 in 2016 and 2017 respectively for the acquisition of
intangible assets such as goodwill, trademark, patent, copyrights etc.
(Kathmandu, 2017; 2016).
 Proceeds from sale of property, plant and equipment: This means the company
has sold property, plant and equipment in the accounting period. Thus, in
2017, the company had reported $ 1000 whereas in 2016 it was reported with
$ 5000.
3. Cash flows from financing activities:
Myer Holdings Limited
 Repayment of borrowings: This means that the company raises a capital and pay
to its investors. In this case, company repays $ 5000000 in 2017 for the
borrowings whereas it was $ 295000000 in 2016. This shows a tremendous
decrement in payment of borrowings in current year (Myer, 2017; 2016).
 Dividends paid: Any dividend paid is recognised in cash from financing activities.
In this case, $ 49276000 and $ 16426000 was reported in FY 2017 and 2016
respectively. This means that in current year dividend has increased.

CORPORATE ACCOUNTING 12
 Proceeds for issue of shares: This means company has raise its share capital by
issuing the shares to the shareholders (Myer, 2017; 2016). In this case, there are
issue of shares in 2017 whereas $ 212011000 was reported in 2016.
Kathmandu Holdings Limited
 Repayment of loan advances: This means that the company has paid for the loan
taken earlier. In this case, company repays $ 123533000in 2017 for the loan
whereas it has repaid $ 87658000 in 2016 (Kathmandu, 2017; 2016). This shows a
tremendous increment in payment of loan advances in current year.
 Dividends paid: Any dividend paid is recognised in cash from financing activities.
In this case, $ 24179000 and $ 16119000 was reported in FY 2017 and 2016
respectively. This means that in current year dividend has increased (Kathmandu,
2017; 2016).
 Proceeds for loan advances: This means company has received amount for loan
advances. In this case, $ 90330000 was received in 2017 whereas in 2016
company had received $63047000.
iv. and v.
Comparative analysis:
Myer Holdings limited
Particulars
2017
($'000)
2016
($'000) 2017 (%)
2015
($'000)
2016
(%)
cash flows from operating
activities
Receipts from customers 29,31,853 31,01,149 -5.46% 3,096,099 0.16%
Payments to suppliers and
employees -27,44,651 -29,15,467 -5.86% -2946252 -1.04%
1,87,202 1,85,682 0.82% 1,49,847 23.91%
Other income 0 71 -100.00% 108 -34.26%
Interest paid -10,165 -15,894 -36.05% -22601 -29.68%
tax paid -27,759 -20369 36.28% -30439 -33.08%
Net cash inflow from operating 1,49,278 1,49,490 -0.14% 96,915 54.25%

CORPORATE ACCOUNTING 13
activities
Cash flows from investing
activities
Payments for property, plant and
equipment -88,452 -40,479 118.51% -63099 -35.85%
payments for intangible assets -24,217 -11891 103.66% -17276 -31.17%
payments for acquisition of
assets, under business
combination -13,000 0 #DIV/0! 0 #DIV/0!
lease incentives and contribution
received 16,758 1856 802.91% 18225 -89.82%
Net investment in associate -966 -8,680 -88.87% 0 #DIV/0!
Payment for brands acquisition 0 0 #DIV/0! -1000
-
100.00
%
Interest received 421 943 -55.36% 800 17.88%
Net cash outflow from investing
activities -1,09,456 -58,251 87.90% -62,350 -6.57%
Cash flows from financing
activities
Repayment of borrowings, net of
transaction costs -5,000 -2,95,000 -98.31% 17927
-
1745.56
%
Dividends paid to equity holders
of the parent -49276 -16426 199.99% -73211 -77.56%
Payment for acquisition of
treasury shares -196 0 #DIV/0! 0 #DIV/0!
Proceeds from the issue of
shares, net of transaction cost 0 212011 -100.00% 23
921686.
96%
Other 34 60 -43.33% 455 -86.81%
Net cash outflow from financing
activities -54,438 -99,355 -45.21% -54,806 81.28%
Net (decrease)/increase in cash
and cash equivalents -14,616 -8,116 80.09% -20,241 -59.90%
Cash and cash equivalents at the
beginning of the financial period 45207 53323 -15.22% 73564 -27.51%
Cash and cash equivalents at end
of period 30,591 45,207 -32.33% 53,323 -15.22%
Kathmandu Holdings limited
Particulars
2017
($'000)
2016
($'000) 2017 (%)
2015
($'000)
2016
(%)
cash flows from operating
activities

CORPORATE ACCOUNTING 14
Receipts from customers 4,44,100 4,24,182 4.70% 409506 3.58%
Income tax received 0 1,357 -100.00% 2609
Payments to suppliers and
employees -3,60,122 -3,36,968 6.87% -363191 -7.22%
Interest Received 28 26 7.69% 56 -53.57%
Interest paid -2,162 -2,829 -23.58% -4206 -32.74%
tax paid -14,571 -16688 -12.69% -15147 10.17%
Net cash inflow from operating
activities 67,273 69,080 -2.62% 29,627
133.17
%
Cash flows from investing
activities
Purchase of property, plant and
equipment -11,419 -20,729 -44.91% -16093 28.81%
purchase of intangibles -1,857 -2467 -24.73% -3901 -36.76%
Proceeds from sale of property,
plant and equipment 1 5 -80.00% 14 -64.29%
Net cash outflow from investing
activities -13,275 -23,191 -42.76% -19,980 16.07%
Cash flows from financing
activities
Repayment of loan advances -1,23,533 -87,658 40.93% -93740 -6.49%
Dividends paid -24179 -16119 50.00% -24163 -33.29%
Proceeds from loan advances 90330 63047 43.27% 101551 -37.92%
Proceeds from share issues 0 0 #DIV/0! 1454
-
100.00
%
Net cash outflow from financing
activities -57,382 -40,730 40.88% -14,898
173.39
%
Net (decrease)/increase in cash
and cash equivalents -3,384 5,159 -165.59% -5,251
-
198.25
%
Cash and cash equivalents at the
beginning of the financial period 6891 1700 305.35% 7192 -76.36%
Effect of foreign exchange rates 30 32 -6.25% -241
-
113.28
%
Cash and cash equivalents at end
of period 3,537 6,891 -48.67% 1,700
305.35
%
Myer Holdings limited: As per the above comparative analysis, it can be said that receipts
from customers is decreased by 5.46% in 2017 whereas in 2016 it was increased by 0.16%
Similarly, cash paid to suppliers and employees are also decreased by 5.86% in 2017 which is
more from 2016. This signifies a better position from point of view of operating activities. In

CORPORATE ACCOUNTING 15
addition to this, company has acquired plant, property and equipment in all the three years
but highest amount was paid in 2017 and also interest received by the company is least in
2017. Thus, it is inferred that company has highest amount of net cash outflow in 2017
among three years. Continuing the explanation with financing activities it depicts that
company there were no proceeds from issue of shares and company had repaid the least
amount in borrowings in 2017 in comparison of three years.
Kathmandu Holdings limited: As per the above comparative analysis, receipts from
customers was highest in 2017 in comparison to 2016 and 2015 financial years. Further,
payments to suppliers and employees is also increased by 6.87% from 2016 whereas it was
decreased by 7.22% in 2016 as compare to 2015. Taking the figures of purchase of
intangibles and plant, property and equipment it is observed that company has paid minimum
amount in 2017 in comparison to 2016 and 2015. Similarly, Proceeds from sale of property,
plant and equipment is decreased by 93% from 2015. Continuing the explanation with
financing activities it depicts that company has paid dividends higher by 50% in 2017 as
paralleled to 2016.
OTHER COMPREHENSIVE INCOME STATEMENT
vi. Items listed in Comprehensive income statement:
Myer Holdings limited
 Items included are: Profit for the period plus items reclassified to profit or loss such as
cash flow hedges and exchange differences on translation of foreign operations. In
this case, total comprehensive income for the period attributable to owners of Myer
Holdings Limited was $ 12815000 in FY 2017 and $ 45836000 in FY 2016 (Myer,
2017; 2016).
Kathmandu Holdings limited

CORPORATE ACCOUNTING 16
 Items included are: Profit for the period plus items reclassified to profit or loss such as
cash flow hedge reserve and foreign currency translation reserve. In this case, total
comprehensive income for the period attributable to owners of Kathmandu Holdings
Limited was $ 38457000 in FY 2017 and $ 11246000 in FY 2016 (Kathmandu, 2017;
2016).
vii. The statement of comprehensive income comprises of the net profit for the period
including all those incomes and expenses that ordinarily avoid the income
statement because they are yet to be realized. Examples are: Foreign currency
translation movements, cash flow hedge reserves, gains or losses from derivatives
etc. Thus, it can be said that above items are not occur frequently and they are not
ordinary profit or loss for the company and hence they are unfit to report in profit
or loss statement/ income statement.
viii. Comparative analysis:
Myer Holdings limited
Particulars
2017
($'000)
2016
($'000)
$
change
%
change
Profit for the period 11939 60543 -48604 -80.28%
Other comprehensive income
Items that may be reclassified to profit
or loss:
Cash flow hedges 547 -14486 15033
-
103.78%
Exchange differences on translation of
foreign operations 329 -221 550
-
248.87%
Other comprehensive income for the
period, net of tax 876 -14707 15583
-
105.96%
Total comprehensive income for the
period attributable to owners of Myer
Holdings Limited 12815 45836 -33021 -72.04%
Kathmandu Holdings limited

CORPORATE ACCOUNTING 17
Particulars
2017
($'000)
2016
($'000)
$
change
%
change
Profit for the period 38039 33521 4518 13.48%
Other comprehensive income
Items that may be reclassified to profit or
loss:
Cash flow hedges 209 -15891 16100
-
101.32%
Exchange differences on translation of
foreign operations 209 -6384 6593
-
103.27%
Other comprehensive income for the
period, net of tax 418 -22275 22693
-
101.88%
Total comprehensive income for the period
attributable to owners of Kathmandu
Holdings Limited 38457 11246 27211 241.96%
If the above items are recorded in profit or loss statement or income statement, then the
profits earned by the company does not show a true and fair view about the company’s
performance and stability position to the shareholders of the company because above items
have not been realized yet and are not regular in nature. The above events or circumstances
have been occurred during a period but does not have any monetary affected and on the basis
of which shareholders are mis-guided.
ix. Yes, other comprehensive income should be included in evaluating the
performance of managers of the company because they are ultimate responsible
for the growth of the company. Further, directors and managers of the company
puts company’s money in derivative market and if any losses incurred by the
company due to derivative instruments then it is the responsibility of managers or
directors to compensate the company in losses.
ACCOUNTING FOR CORPORATE INCOME TAX
x. Tax expenses:
Particulars 2017 (‘000) 2016 (‘000)

CORPORATE ACCOUNTING 18
Myer Holdings Limited $ 18,274 $ 20,152
Kathmandu Holdings
Limited
$ 16,935 $ 13,804
xi. Effective tax rate:
Formula:
Effective tax rate = [Income tax expense/ Earnings before tax] *100
Myer Holdings Limited
Particulars 2017 (‘000) 2016 (‘000)
Income tax expense $ 18,274 $ 20,152
Earnings before tax $ 30,213 $ 80,695
Effective Tax Rate 60.48% 24.97%
(Myer, 2017; 2016).
Kathmandu Holdings Limited
Particulars 2017 (‘000) 2016 (‘000)
Income tax expense $ 16,935 $ 13,804
Earnings before tax $ 54,974 $ 47,325
Effective Tax Rate 30.80% 29.17%
(Kathmandu, 2017; 2016).
Myer Holdings Limited has higher effective tax rate.
xii. To reduce the assessable income of the company, deferred tax assets is recorded in
the balance sheet. The purpose of creation of deferred tax assets when the
company has overpaid the amount of tax and the excess amount will return to the
company through tax relief. In addition to this, deferred tax asset is reported when

CORPORATE ACCOUNTING 19
there is a difference in accounting rules and tax rules. Similarly, Deferred tax
liability is absolutely contrary to deferred tax assets where the company would
necessitate to pay taxes as per accounting rules but have deferred to the future. In
other terms, deferred tax liabilities are created when the company has underpaid
the amount of tax. Hence in this case, Myer holdings limited has reported
Deferred tax liabilities of worth $ 84574000 in financial year 2017 Kathmandu
Holdings limited has recorded deferred tax liabilities of worth $ 34027000 in
Financial Year 2017.
xiii. Deferred tax assets/deferred tax liabilities:
Myer Holdings limited has reported Deferred tax liabilities of worth $ 84574000
in financial year 2017 and $ 88444000 in financial year 2016. This signifies that
the Deferred tax liabilities is decreased in year 2017 in comparison to year 2016.
Kathmandu Holdings limited has reported Deferred tax liabilities of worth $
34027000 in financial year 2017 and $ 33247000 in financial year 2016. This
signifies that the Deferred tax liabilities is increased in year 2017 in comparison to
year 2016.
xiv. Cash tax amount:
Myer holdings limited
Particulars 2017 (‘000) 2016 (‘000)
Current Income tax expense $ 23,925 $ 26,740
Unlevered income taxes $ 3,049.5 $ 4,768.2
Cash tax amount $ 26,974.5 $ 31,508.20
(Myer, 2017; 2016).
Kathmandu holdings limited
Particulars 2017 (‘000) 2016 (‘000)

CORPORATE ACCOUNTING 20
Current Income tax expense $ 16,829 $ 14,996
Unlevered income taxes $ 597.52 $ 784.84
Cash tax amount $ 17,426.52 $ 15,780.84
(Kathmandu, 2017; 2016).
xv. Cash Tax rate:
Formula:
Cash tax rate = [Cash tax expense/ Earnings before tax] *100
Myer Holdings Limited
Particulars 2017 (‘000) 2016 (‘000)
Cash tax amount $ 26,974.5 $ 31,508.20
Earnings before tax $ 30,213 $ 80,695
Cash Tax Rate 89.28% 39.05%
(Myer, 2017; 2016).
Kathmandu Holdings Limited
Particulars 2017 (‘000) 2016 (‘000)
Cash tax amount $ 17,426.52 $ 15,780.84
Earnings before tax $ 54,974 $ 47,325
Cash Tax Rate 31.70% 33.35%
(Kathmandu, 2017; 2016).
Myer Holdings Limited has higher cash tax rate.
xvi. The cash tax rate is different from book tax rate because cash tax rate is a rate paid
to the government authorities and it is computed under taxation laws whereas

CORPORATE ACCOUNTING 21
Book tax rate is shown in the financial statements of the company and it is
computed under GAAP policies.
CONCLUSION
It is concluded that both company’s performance is evaluated from various aspects
such as on basis of owners’ equity, cash flow statement, other comprehensive income and
corporate tax rate. Doing comparative analysis of both companies it can be said that
Kathmandu Holdings limited is performed very well in comparison to Myer Holdings
limited.

CORPORATE ACCOUNTING 22
REFERENCES
MYER, 2018. History, viewed on 23 September 2018 from
https://www.myer.com.au/p/about-myer/the-company/about-us/history/.
Bloomberg, 2018, Myer Holdings Limited, viewed on 23 September 2018 from
https://www.bloomberg.com/quote/MYR:AU.
MYER, 2018, About us, viewed on 23 September 2018 from
https://www.myer.com.au/p/about-myer/the-company/about-us/history/.
MYER, 2017, Annual Report, viewed on 23 September 2018 from
http://investor.myer.com.au/FormBuilder/_Resource/_module/dGngnzELxUikQxL5gb1cgA/
file/Myer_Annual_Report_2017.pdf.
MYER, 2016, ASX and Media Release, viewed on 23 September 2018 from
http://investor.myer.com.au/FormBuilder/_Resource/_module/dGngnzELxUikQxL5gb1cgA/
file/Myer_Annual_Report_2016.pdf.
MYER, 2018, Company Profile, viewed on 23 September 2018 from
http://investor.myer.com.au/Investor-Centre/.
Kathmandu, 2018, About us, viewed on 23 September 2018 from
https://www.kathmanduholdings.com/about-us/our-history/.
Kathmandu, 2017, Annual Report, viewed on 23 September 2018 from
https://www.kathmanduholdings.com/wp-content/uploads/2012/08/Kathmandu-Annual-
Report-2017_online.pdf.

CORPORATE ACCOUNTING 23
Kathmandu, 2016, Annual Report, viewed on 23 September 2018 from
https://www.kathmanduholdings.com/wp-content/uploads/2012/08/Kathmandu-AR-2016-
online.pdf.