Corporate Accounting University Name Student Name Authors Note

In addition to this, there are payments of cash to different employees for various redundancies as well as associated costs, payments of cash to firm’s employees for particularly Wage Freeze Bonus as well as Record Results Bonus. Qantas Airways is the largest airline in Australia in terms of size of fleet, intercontinental flights and global destinations and is regarded as the flag carrier of the nation Australia. Qantas Airways is the largest airline in Australia in terms of size of fleet, intercontinental flights and global destinations and is

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

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Table of Contents
Answer i)....................................................................................................................................2
Answer ii)...................................................................................................................................4
Answer iii)..................................................................................................................................5
Answer iv)..................................................................................................................................6
Answer v)...................................................................................................................................6
Answer vi)..................................................................................................................................6
Answer vii).................................................................................................................................7
Answer viii)................................................................................................................................7
Answer ix)..................................................................................................................................8
Answer x)...................................................................................................................................8
Answer xi)..................................................................................................................................9
References................................................................................................................................10
Appendix..................................................................................................................................12

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The company chosen for the current study is Qantas Airways. Qantas Airways is largest
airline in Australia in terms of size of fleet, intercontinental flights and global destinations
and is regarded as the flag carrier of the nation Australia. This is a publicly traded company
and is listed in the Australian Stock Exchange.
Answer i)
The items that are included in the cash flow statement of the firm can be categorised under
three different heads namely, financing, investing as well as operating activities. The list of
items that are mentioned under the heading of “cash flow for the purpose of operating
activities comprises of depreciation, specific adjustments in earnings, changes in accounts
receivables, inventory along with changes in the company’s liability (Siew 2015). As per the
annual report of the firm, the flows of cash from operating activities include receipts of cash
from particularly customers, disbursements of cash to different suppliers as well as
employees. In addition to this, there are payments of cash to different employees for various
redundancies as well as associated costs, payments of cash to firm’s employees for
particularly Wage Freeze Bonus as well as Record Results Bonus. Also, flow of cash from
operations also includes interests received and paid, dividends received for investments as
well as payments of income taxes. Thereafter, the items included under Qantas’s investing
activities include disbursements for particularly plant, property along with equipments (also
known as PPE), disbursements for interests and capitalised on specific assets, disbursements
for investments (considered under method of equity), earnings generated from sale of PPE
and net repayment of company’s loans. Furthermore, the list of items under the financing
actions of the firm Qantas Airways include payments for particularly buy back of shares,
disbursements for return of capital, treasury shares and pay offs of different borrowings.
Also, proceeds generated from the borrowings are also included under this head. Further, this

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section includes net receipts for varied aircraft security deposits as well as hedges associated
to debt, dividend payments to firm’s shareholders as well as non-controlling interests.
It can also be hereby mentioned that the net cash used for the three different kinds of
activities of the firm are also included in this assertion along with cash as well as cash
equivalents registered at the closing of the year (Miao et al. 2016).
Analysis of the cash flow statement reveals that the cash flow used in operating actions is
registered to be AUD2704 million in 2017 in comparison to AUD 2819 million in 2016,
replicating a decline in the inflow of cash from operating activities. This is mainly due to
decrease in receipts of cash from customers, decline in receipt of interests along with increase
in payments of cash to firm’s employees for wage freeze bonus and increase in tax paid.
Again , cash flow from particularly investing activities shows increase in cash outflow of the
firm from (AUD 1923 million) to (AUD 2046 million). This is mainly due to sharp decline in
the proceeds of the firm from the disposal of its PPE. Again, evaluation of the assertion
replicates decrease in cash outflow for financing actions in the year 2017 to (AUD 854
million) as compared to the year ago figure of (AUD 1825 million). As such, this is primarily
owing to decline in the payments for the buyback of shares as well as repayment of
borrowings (Miao et al. 2016). Finally, the cash as well as cash equivalents of the firm
Qantas Airways recorded at the closing of the year is registered to be AUD 1775 million in
2017 as compared to AUD 1980 million registered in the year 2016.
Graphical and tabular presentation of the cash flow of the firm Qantas Airways for the past
three years are presented below. The net inflow of the company’s cash for operating activities
can be observed to have escalated during the period 2016 as compared to the year ago period,
while the same reflects a sharp decline in the following year that is during the year 2017.
However, outflow of cash has been registered for the investing activities. However, it can be

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hereby witnessed that the cash outflow of for investing actions has increased steadily
throughout the specified period of time. Again, outflow of cash can be observed for the
financing activities of the firm (Miao et al. 2016). However, cash outflow for financing
activities is said to have enhanced during the period 2016 in comparison to the figure of
2016, whereas the same again dipped down in the subsequent year.
Answer ii)
Cash flow 2017 in
$m
2016 in
$m
2015 in
$m
Net cash flow from operating activities 2704 2819 2048
Net cash flow from investing activities -2046 -1923 -944
Net cash flow from financing activities -854 -1825 -1218
2017 in $m 2016 in $m 2015 in $m
-3000
-2000
-1000
0
1000
2000
3000
4000
Cash Flow Analysis
Net cash flow from operating activities Net cash flow from investing activities
Net cash flow from financing activities
Answer iii)
The assertion for other comprehensive income mentions the statutory profit of the company
for the financial year. Thereafter, this statement includes the definite items that are or else
might perhaps be re-categorised consequently to particularly profit or else loss (Warren and
Jones 2018). In addition to this, this statement also states the items that shall not be re-

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classified to firm’s profit or else loss. Thereafter, this assertion mentions the other
comprehensive earning/loss for the particular year and the total figure for the same (Warren
and Jones 2018). However, the items that are included in the items that might be reclassified
include effectual fraction of changes in particularly fair value of mainly hedges of flow of
cash, transfer of reserve of hedges, recognition of particularly effectual hedge of cash flow,
translation of foreign currency of different controlled entities and translation of specific
investments that is mainly accounted under equity method along with share of various other
comprehensive income else loss of definite investments considered under equity mechanism.
The total comprehensive income of the firm Qantas Airways is recorded to be AUD 1033 in
the financial year 2017 and AUD 850 million in 2016, replicating an increase in the same.
Answer iv)
Statutory profit for the current year is observed to decrease to AUD 853 million in the year
2017 while the same is recorded to be AUD 1029 million in 2016. The exchange differences
can be observed from the effective changes in fair value of hedges of flow of cash. In this
segment there is an outflow amounting to (AUD 187 million) in 2016 that turned to inflow
amounting to AUD 46 million.
Answer v)
Fundamentally, comprehensive statement of earnings is chiefly used for enumerating all the
changes and transformations in interests of different owners (Ijiri 2018). As such, this
considers income together with expenditure of the firm that are necessarily not realised and is
chiefly used for varied derivative instruments, effective changes in mainly fair value of
hedging of flow of cash (considered net of amount of tax), transfer of reserve of hedge to
chiefly consolidated earning statement (considered net of amount of tax). Also, this statement
takes in recognition of effective hedging of flow of cash on specified capitalised asset (that is

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again net of amount of tax). In addition to this, this assertion of comprehensive earning also
reveals net transformation in company’s reserve of essentially hedge for specifically time
value of definite options (also considered net of amount of tax) (Maas et al. 2016).
Additionally, this pronouncement also comprises of details of translation of foreign currency,
translation of foreign currency of essentially investment that is taken in under specifically
equity method as well as shares of different other comprehensive gains otherwise losses for
investment enumerated under the equity method.
Answer vi)
The tax expenditure of the company Qantas Airways is recorded to be (AUD328 million in
2017 and (AUD 395 million). Particularly, expenditure for income tax uses domestic rate of
corporate tax of roughly 30%. Together with this, statutory profit before income tax are
essentially adjusted for mainly non-assessable dividends, diverse non-deductible shares of
chiefly net loss for necessarily investments under system of equity, different non-deductible
losses necessarily for foreign branches together with controlled entity losses (Miao et al.
2016). In addition to this, adjustments also take account of utilization of previously
unrecognized capital losses, diverse non-assessable profits on specifically sale of PPE along
with other non-assessable items together with provisions from earlier period.
Answer vii)
The income tax for the firm Qantas Airways is necessarily calculated by using specified tax
rate that are necessarily enforced considerably by the declaration on financial position.
Thorough study of the yearly report of then firm reveals that the present expenditure of the
firm on particularly tax in the year 2017 was registered to be (AUD 328 million) while the
same was recorded to be (AUD 395 million) in the year 2016. Therefore, it cannot be

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evaluated whether numerals for income tax expenses are similar to that rate of tax times
overall earnings (Siew 2015).
Answer viii)
It can be hereby observed from the annual report of the firm Qantas Airways that the deferred
tax (assets/liabilities) stands at (AUD 353 million) in the year 2017 whereas the same is
recorded to be AUD 39 million. In essence, deferred tax is mainly recognized with regard to
temporary differences between carrying amounts of assets else wise liabilities for particularly
financial reporting cause and the overall amount used for the purpose of taxation (Miao et al.
2016). In particular, deferred tax assets are essentially recognized for particularly unused tax
losses; credit for necessarily tax together with temporary differences to the specific point that
it becomes plausible that taxable earning in the future period against which they can be used
(Miglani et al. 2015).
Answer ix)
Expenditure for income tax for period 2017 as documented in the financial statement of the
firm stands at (AUD 328 million) and income tax expenditure was observed to be (AUD 395
million) during the period 2016. Nonetheless, the figure for the firm’s income tax payable is
recorded to be (AUD 4 million). Essentially, this replicates a reconciliation of particularly
income tax expenditure of the corporation Qantas Airways to income tax payable. This
process of reconciliation includes adjustments for chiefly temporary differences. Essentially,
adjustments carried out for temporary differences take in adjustments for particularly
inventories, PPE, revenue earned by the firm in advance period along with payables (Reid
and Myddelton 2017). Also, there is adjustments regarding firm’s interests bearing liabilities,
diverse financial assets, varied provisions, varied other items along with previous period
differences. In essence, temporary differences is documented to be AUD 167 million in the

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period 2017 as compared to the previous period’s (AUD 18 million). Finally, after the
adjustments the tax payable is enumerated to be (AUD 4 million).
Answer x)
Critical evaluation of annual financial assertion of the firm Qantas Airways reflects that
income tax expenses presented in the income statement is not similar to that of payment of
income tax reflected in the declaration on flow of cash. In essence, disbursements for income
tax necessarily take in impact of income tax of particular losses otherwise gains related to
financing actions so that cash flow enumerated after tax is reflected in the sub totals of net
cash flow (Saeidi et al. 2015). Again, conversely, expenses of the firm on particularly
taxation are necessarily the particular amount that represents costs for tax.
Answer xi)
Founded on thorough analysis of annual report, it can be hereby identified that for the firm
Qantas Airways there is essentially a charge for current taxation on firm’s earnings. In
essence, this is primarily based on company’s adjusted profits that are primarily attributable
for any kind of disapproved otherwise non-assessable item. In addition to this, there also exist
notes for the financial declarations presented by the firm that help in comprehending
reconciliation of expenses on income tax to payable tax. Fundamentally, this sort of
reconciliation presents specific information to varied users as regards enumeration of this sort
of income tax expenses (Schaltegger and Burritt2017). Therefore, the most remarkable part in
relation to realisation of expenses of income tax is basically reconciliation of numerous
temporary differences and ny sort of net loss that is borne particularly after tax on firm’s
earnings.

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References
Ijiri, Y., 2018. An Introduction to Corporate Accounting Standards: A Review. Accounting,
Economics, and Law: A Convivium, 8(1).
Maas, K., Schaltegger, S. and Crutzen, N., 2016. Integrating corporate sustainability
assessment, management accounting, control, and reporting. Journal of Cleaner
Production, 136, pp.237-248.
Miao, B., Teoh, S.H. and Zhu, Z., 2016. Limited attention, statement of cash flow disclosure,
and the valuation of accruals. Review of Accounting Studies, 21(2), pp.473-515.
Miglani, S., Ahmed, K., and Henry, D. 2015. Voluntary corporate governance structure and
financial distress: evidence from Australia. Journal of Contemporary Accounting &
Economics, 11(1), 18-30.
Reid, W. and Myddelton, D.R., 2017. Cash flow statement. In The Meaning of Company
Accounts (pp. 16-16). Routledge.
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., and Saaeidi, S. A. 2015. How does corporate
social responsibility contribute to firm financial performance? The mediating role of
competitive advantage, reputation, and customer satisfaction. Journal of Business
Research, 68(2), 341-350.
Schaltegger, S., and Burritt, R. 2017. Contemporary environmental accounting: issues,
concepts and practice. Routledge.
Siew, R.Y., 2015. A review of corporate sustainability reporting tools (SRTs). Journal of
environmental management, 164, pp.180-195.

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Tschopp, D. and Nastanski, M., 2014. The harmonization and convergence of corporate
social responsibility reporting standards. Journal of Business Ethics, 125(1), pp.147-162.
Warren, C.S. and Jones, J., 2018. Corporate financial accounting. Cengage Learning.

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Appendix

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