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Corporate Accounting Report - BSA limited

   

Added on  2020-05-28

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Running head:CORPORATE ACCOUNTINGCorporate AccountingUniversity NameStudent NameAuthors’ Note

2CORPORATE ACCOUNTINGTable of ContentsSolution to Question i.................................................................................................................2Answer to Question ii.................................................................................................................3Answer to Question iii...............................................................................................................4Solution to Question iv...............................................................................................................7Answer to Question v:................................................................................................................8Solution to Question vi...............................................................................................................9Solution to Question vii...........................................................................................................10References................................................................................................................................11

3CORPORATE ACCOUNTINGSolution to Question iList of items of equity The annual report of the firm BSA limited reflects the fact that the equity of the firm consistsof the items issued capital, reserves, profit reserve as well as accumulated losses. The issuedcapital stands at $97592000 during 2016 and has the remained the same as compared to 2015.The item “reserves” listed under equity of BSA Limited is recorded to be $1410000 for boththe year 2015 and 2016. The accumulated losses of the firm are recorded to be ($63024000)while it increased to ($65243000). There are important items that are positioned under issuedcapital are necessarily ordinary shares that a specific corporation issues, together withspecified costs that are associated to share issue plus income tax linked share issue (Tran,2015). According to the balance sheet statement of the corporation BSA Limited, there arefour different items that are clubbed under the equity items namely the issued capital,reserves, accumulated losses and the profit reserve of the firm. According to the annual reportof the corporation, the issued capital can be witnessed to be $97592000 during the financialyear 2016 in comparison to the figure registered to be $97592000 during the financial year2015. Further, under the concept of financial accounting, principally reserves can beconsidered as a specific component of equity of the firm BSA Limited. For itself, it can beindicated as a supplementary amount besides fundamental capital share. The yearlypronouncement of BSA shows that reserves stand at $1410000 in comparison to figuredocumented year ago and that was equal to $1410000. Again, the consequent item statedunder the head equity of the corporation BSA Limited is essentially retained income.Fundamentally, this stands for the overall profit/losses of the firm mainly enumerated sincethe time of arrangement reduced by the dividend pay-out to firm’s shareholders (Tran, 2015).

4CORPORATE ACCOUNTINGAnswer to Question iiSeveral categories of expends are incurred by corporations that comprises of selling expendsand administrative expends. In essence, one of these types of expenditures include taxexpends. The financial statement of the firm reflects loss of amount $ (3014000) incurredfrom continuing actions from particularly income tax. In addition, tax expends can beconsidered as a major responsibility of the business concern owing to the federal, state alongwith municipal governing bodies of the country. The calculation of tax expends is executedby the multiplying the suitable tax of the corporation by the company’s earnings before taxesafter specifically factoring specific components namely non-deductible accounts, taxassets/liabilities (Tran, 2015). Fundamentally, there subsists no exception even in case of thebusiness concern BSA Limited since the business concern incurs certain tax expends. As perthe rules of the Australian taxation regulations, the corporate tax rate for specificallyAustralian corporations is approximately 30%. Based on the tax rate of approximately 30%,the entire tax expenditure of the corporation BSA Limited is around $795000 recorded duringthe financial year 2016. In essence, this can be regarded to be main tax expenditure of thecorporation for 2016. Nonetheless, this can be hereby observed that there has been decline inthe tax expenditure on the whole due to the reduction in overall income of the firm during theyear 2016 in comparison to the year 2015. Answer to Question iiiIt can be hereby stated that the business corporation BSA Limited has recorded a lossamounting to $3014000 during the financial year 2016. Nevertheless, profit was registered tobe around $5449000 during the financial 2015. The financial statement replicates the overalladvantage for a specified time period that can again be reconciled and has documented a loss/profit from continuing operations of the firm (Bentwood & Lee, 2012). However, that can be

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