Corporate Accounting: Sources of Fund, Liabilities, and AASB 137

Corporate
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Identify the different sources of fund which is used by the chosen organization....................3
2. Evaluate the evolution of sources of fund over the last three financial years and focus on the
changes of various sources of fund..............................................................................................3
3. Identify the fund's percentage which internally as well as externally generated for each
company.......................................................................................................................................5
4. Explain the merits or shortcoming of different sources which used by the selected
companies....................................................................................................................................6
5. Critically evaluate the types of liabilities which mentioned in the selected company's
balance sheet and also identify that which one is interest bearing & which one not...................8
6. Critically examine the key provision under the AASB 137 such as Provision, Contingency
Liability and Contingency Assets................................................................................................8
7. Evaluate the selected company made any reference regarding AASB 137 in their annual
report............................................................................................................................................9
8. Identify different categories of assets which recorded in the company's balance sheet........10
9. Critically examine the measurement which followed by the organizations to record their
assets..........................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Corporate accounting is branch of accounting and it help the business to prepare final
accounts, cash flow statements and further analyse the results to make future decisions. In this
type of accounting, organizations only consider the monetary terms and records in appropriate
for the further analysis (Aburous, 2016). This report based on the two companies which is listed
in ASX that is Australian Stock Exchange. GPT group and Dexus Limited selected for the better
understanding of these concept. GPT group is real estate investment company which founded in
1971 and its headquarter situated in MLC Centre, Sydney, Australia. On the other side, Dexus
Limited also real estate investment company which manage the high profile portfolio of
Australian properties that valued at $ 31.8 billion.
This assessment cover the various topics such as different sources of finance and the
proportion of funds which company generated internally as well as externally. In addition
identify the liabilities and assets of the organizations which mentioned in their balance sheet and
examine the different key provision under the AASB 137. Along with this, evaluate the
measurement basis at the time of recording assets in the companies.
MAIN BODY
1. Identify the different sources of fund which is used by the chosen organization
There are various sources which is used by the organizations in order to fulfil their
financial requirement. Both companies such as Dexus limited and GPT group using below
mention source of funds which are as followed:
 Retained earnings
 Short term funds
 Long term funds
 Common stock
 Comprehensive income
 Other equities
2. Evaluate the evolution of sources of fund over the last three financial years and focus on the
changes of various sources of fund
GPT group follow the different source of funds which are discussed below:

Short term funds: Company required short terms debt which they had to repay within
one year and with the help of it GPT group able to perform their daily basis activities or fulfil the
financial requirements (Agrawal and Cooper, 2017). In 2018 company required around $ 20
million and in the previous years they were $ 49 million in both 2017 or 2016. it is observed that
company reduces their short term debt around $ 29 million.
Long term funds: Company required long term debt to make necessary changes in the
business operations or maximise the productivity. GOT group had long term debt in 2016 was
around $ 2948 million, in 2017 it was $ 3281 million and in 2018 it was $ 3599 million
(Financial report of GPT Group, 2020). It is clearly mentioned that, company required more
finance to perform their operations because long term debt increases every year.
Retain earnings: This earning secure by the company to for the future purpose or any
uninvited event. In 2016, GPT retain around $ 124 million, $ 950 million or $ 1945 million in
2017 or 2018 respectively. It is analysed that company raise their earning for for the further
actions which is beneficial for the company.
Common stock: With the help of company's balance sheet, it is observed that GPT has $
8130 million of common stock 2016, $ 8141 million in 2017 and in 2018 it was around $ 8152
million stock. There is not enough difference in the common stock in different period.
Comprehensive income: In the GPT Group, balance sheet shows that company had
other income around $ 16 million in 2016. In 2017, it was $ 9 million and ($ 8 million) in 2018
that was loss for the company.
Other equity: With the help of balance sheet of the company, it is observed that GPT
Group has $ 13 millions of other equities in 2016 (Atanasov and Black, 2016). In 2017, it was $
8 million and $ 13 million in 2018. There is a fluctuation in the other equities due to requirement
of liquidity in the organizations.
Dexus limited using below mention source of funds to fulfil their financial requirements:
Short term funds: Company was taken short term loan in 2016 around $ 316 million, $
149 million in 2017 and in 2018 it was $ 205 million. It has been analysed that Dexus limited
borrow different amount of loan in the different years.
Long term funds: With the help of financial statement of the company it is observed that
Dexus had long term debt around $ 3371 million in 2016. On the other side, it was reduces in