Corporate Accounting: Financial Analysis of Telstra Corporation Limited and TPG Telecom Limited

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

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CORPORATE ACCOUNTING
Executive Summary
The primary intention of the study is to evaluate financial assertions of two firms for three
years. The current report presents the companies that are chosen for this assessment are
Telstra Corporation Limited and TPG Telecom Limited. The report evaluates diverse
components that are revealed in the yearly account for instance Income tax expenditures. The
current report evaluates flow of cash statement thoroughly for both the firms in a bid to
analyse streams of cash of the corporation during the period. The analysis undertakes a
relative analysis of statement of stream of cash between Telstra Corporation Limited and
TPG Telecom Limited. The evaluation also entails computation of effective rate of tax and
tax rates (Cash as well as Book) and presents an elucidation of tax expends and tax
framework of both the firms.

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CORPORATE ACCOUNTING
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Owner’s Equity..........................................................................................................................4
Capital Structure Position of Both the Companies....................................................................6
Comparative Evaluation of Three different Components of Statement of Cash Flow........10
Insight of Cash flow Statement............................................................................................11
Analysis of Other Comprehensive Income Statement.............................................................11
Reporting of Comprehensive Items.....................................................................................12
Comparative Analysis of Comprehensive Items..................................................................12
Accounting for the purpose of Income Tax.........................................................................13
Effective Rate of Tax...........................................................................................................13
Deferred Tax Assets and Liabilities.....................................................................................14
Cash Tax Amount and Rate of Both Company....................................................................15
Distinction Between Cash Tax Rate and Book Tax Rate....................................................16
References................................................................................................................................17

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CORPORATE ACCOUNTING
Introduction
The primary aim of this report is to analyze financial assertions of two different firms that
operate in the same industry and has related operations levels. In essence, the two different
firms that are chosen for this report are Telstra Corporation Limited and TPG Telecom
Limited that are both engaged in telecommunication business. Essentially, the analysis takes
into account yearly reports of both the firm for the purpose of assessing different components
of financial assertions and also presents a comparative evaluation between the two firms and
this has a superior reporting of these components of annual reports.
Telstra is a leading telecommunications as well as technology company in the nation
Australia, providing a wide range of communications services and competing in different
markets of telecommunications. In the nation Australia, it is important to offer 17.7 million
mobile services in the retail market, 4.9 million fixed voice services in the retail segment and
3.6 million fixed broadband services in the retail section.
TPG Telecom Limited refers to an Australian telecommunications as well as IT firm that
concentrates in consumer as well as business internet services with mobile telephone
services. During the period August of the year 2015, TPG Telecom Limited is the second
internet service provider in the nation Australia and functions as the prime operator of mobile
virtual network. The company TPG delivers five different ranges of products as well as
services counting mobile phone service, internet accessibility, software in accounting,
networking as well as OEM services.
The primary emphasis of the report can help in analysis of yearly reports of both the firms for
a period of past three successive years beginning from the period 2017. The appraisal also
reflects examination and relative study of the components that are reflected in the yearly
reports of the company. There are certain important areas that are regarded in the yearly