Requirements for Accounting Name of the University Author Note

CORPORATE ACCOUNTING CORPORATE ACCOUNTING Corporate accounting Name of the Student Name of the University Author Note Requirement i) 2 Requirement ii) 3 Requirement iii) 3 Requirement iv) 4 Requirement v) 5 Requirement vi) 5 Requirement 1542) 5 Requirement viii) 6 Requirement ix) 6 Requirement x) 7 Requirement xi) 8 References list: 10 Appendix: 12 Requirement i) The statement of cash flow of Azure minerals has three different segments that are cash from operating activities

Running head: CORPORATE ACCOUNTING
Corporate accounting
Name of the Student
Name of the University
Author Note

CORPORATE ACCOUNTING
Table of Contents
Requirement i)............................................................................................................................2
Requirement ii)...........................................................................................................................3
Requirement iii).........................................................................................................................3
Requirement iv)..........................................................................................................................4
Requirement v)...........................................................................................................................5
Requirement vi)..........................................................................................................................5
Requirement vii).........................................................................................................................5
Requirement viii).......................................................................................................................6
Requirement ix)..........................................................................................................................6
Requirement x)...........................................................................................................................7
Requirement xi)..........................................................................................................................8
References list:.........................................................................................................................10
Appendix:.................................................................................................................................12

CORPORATE ACCOUNTING
Requirement i)
The statement of cash flow of Azure minerals has three different segments that are
cash from operating activities, cash from financing activities and cash from investing
activities. Items listed under cash flows from operating activities include interest received,
payment from suppliers, expenditure on mining interest, reimbursement of exploration
expenditure and other revenue. Revenue is the amount of money that is received by
organization during specific time period. Payments to suppliers are the amount that is paid for
purchasing the raw materials (Adams 2017). It can be seen from the statement that there has
been increase in net cash outflow from $ 4785247 in year 2016 compared to $ 7022959 in
year 2017. This increase in net cash flow is attributable to increase in payment made to
suppliers and employees and increase in expenditure on mining interests.
Now, looking at the items of cash flow from investing activities, it can be seen that
there is significant decline in acquisition payment for projects and any payment made for
plant and equipment. There were proceeds from sale of projects of amount $ 140190. There
was net cash inflow of amount $ 95222 in year 2017 (Azureminerals.com.au 2018).
Items under net cash flow for, financing activities include share issue costs, proceeds
from issue of ordinary shares and prepayment of issue or ordinary shares. Share issue cost is
the cost that is incurred by reporting entity for issuing shares. There has been fall in the cash
flow from financing activities from $ 14554099 to $ 7339880 (Azureminerals.com.au 2018).
Items of cash and cash equivalent include cash and cash equivalent at the beginning of
year and impact of exchange rate on cash and cash equivalent. The amount of cash and cash
equivalent at the end of year 2017 and 2016 stood at $ 9699949 and $ 9387160. Company
was successful in raising $ 7.9 million in raising capital. This increase in amount is

CORPORATE ACCOUNTING
attributable to increase in cash flow from investing and financing activities in year 2017
(Azureminerals.com.au 2018).
Requirement ii)
Comparative analysis of three different categories of cash flow:
Particular 2015 2016 2017
Net cash flows from operating activities
$ -
18,31,676.00
-
47,85,247
-
70,22,959
Net cash flows used in investing
activities -508029 19,87,175
-
95,222
Net cash flows used in financing
activities 3154206
-
1,45,54,099
-
73,39,880
The above table depicts the comparative analysis of cash flow from operating
activities, financing activities and investing activities. Net cash flow from operating activities
declined in year 2017 to $ 7022959 as against $ 1831676 in year 2015. There was net cash
flow used in financing activities in year 2017 at amount $ 7339880 compared to $ 3154206 in
year 2015. On other hand, from investing activities, there was increase in cash flow to $
95222 in year 2017 as against $ -508029.
Requirement iii)
The items listed under the comprehensive income statement involves revenue from
continuing activities that involves expenditure, director fees, depreciation, salaries and
employee benefit expenses, exploration expenses, travel expenses, promotion expense,
administration expense, consulting expense, share based payment expense, other expense and
insurance expense. The total amount of loss resulting from continuing operations before
income tax for year 2017 stood at $ 6985541 as against $ 6253385 in year 2016. Total
amount of revenue for year 2017 is recorded at $ 442421 as against $ 589448 in year 2016

CORPORATE ACCOUNTING
(Azureminerals.com.au 2018). The loss is attributable to the fact that total amount of
expenses is exceeding total amount of revenue that has been earned in both the reporting
period.
Furthermore, no income tax is recorded in both the years and the loss attributable to
the owners of Azure minerals limited stood at $ 6985541 in year 2017 as against $ 6253385.
Items under other comprehensive loss involve exchange differences on translation of foreign
operations and items that are subsequently reclassified into profits. It can be seen that total
comprehensive loss attributable to owners of Azure Minerals limited has decreased in year
2017 from $ 7088551 as against $ 7195904 in year 2016. The reason for decline in total
amount of comprehensive loss is due to lower amount of comprehensive income net of tax
for year 2018.
Requirement iv)
Revenues are the amount that is earned by business from selling goods and services to
customers. Revenues are recorded in the income statement under the accrual method of
accounting and they are different from cash receipts.
Expenses are the cost that is incurred by organization on part of operating activities of
company during specified period of time. Generally, expenses are divided into operating and
non operating expenses. Income tax expenses are the amount of expenses that is recognized
in the accounting period for the tax related to taxable profit (Waddock 2017).
Employees benefit expenses are the amount that include the fringe benefit value to
employees along with the components of fringe benefit tax such as superannuation
component and leave entitlements.

CORPORATE ACCOUNTING
A share based payment is a transaction under which goods and services are received
by reporting entity either by way of incurring liabilities for the amount that is based on share
price of entity or by consideration of the equity instruments (Maaloul and Zéghal 2015).
Exploration expenses are the amount that is incurred for exploring the minerals.
Requirement v)
Comprehensive income statement is used to measure any change in interest of owners
in business. It incorporates the income and expenses that have not been yet realized and it is
used for bypassing the income statement. Other comprehensive income takes into account
items such as losses and gains from derivative instruments, debt security on unrealized losses
and gains, adjustments in foreign currency transactions and retirement plans or any pension
losses or gains (Joshi and Li 2016).
Requirement vi)
The Azure minerals have not incurred any amount of income tax expense during year
2017 and 2016. It is so because for the two consecutive time period, organization has not
generated comprehensive profit.
Requirement vii)
Amount of income tax is computed using the tax rates that have been enacted
substantially by the financial position statement. There is no amount of deferred and current
tax recorded in the current financial reporting. In both the financial year, Azure minerals have
generated comprehensive loss of amount $ 1031010 and $ 941519 in year 2017 and 2016
respectively. Therefore, it cannot be evaluated whether the figures of income tax expenses re
same as the tax rate times the accounting income.

CORPORATE ACCOUNTING
Requirement viii)
Deferred tax is accounted using the method of balance sheet liability resulting from
temporary differences between the tax bases of liabilities and assets and their carrying
amount in the financial statements. The initial recognition of liabilities and assets does not
lead to recognition of deferred income tax and this does not have any impact on accounting or
taxable loss or profit. Recognition of deferred tax assets are done to the extent that the
availability of future taxable profits is probable against the temporary differences that are
deductible. In current year, there has not been any recognition of deferred tax assets as there
is a high probability of availability of future profits for utilization of temporary differences
(Sethi 2016). However, some of the some significant expenditure incurred by company in
Mexico due to estimated future income tax benefits.
Furthermore, no deferred tax liabilities have been recorded by company during year
2017 and 2016 because in the balance sheet. The reason attributable to the absence of such
amount in the balance sheet is that there is uncertainty on part of company to make future tax
payment due to the transactions in the current period. Such liability represents the future tax
payment to be made by company and is calculated as the difference between accounting
earnings before tax and taxable income times the tax rate (Lys et al. 2015). Since, there is no
amount of accounting income earned during the period; no deferred tax liability is recorded.
Requirement ix)
The company has not recorded any amount of income tax expenses in year 2017 and
2016 due to the continuous loss generated as depicted from statement of comprehensive
income. In addition to this, no deferred tax assets have been recorded in the balance sheet and
there is no amount of income tax payables by Azure minerals limited.

CORPORATE ACCOUNTING
Income tax expenses is the amount that is calculated based on the standard accounting
rules and on the amount of tax that is owed by company to tax authorities. Income tax
payable on other hand is the amount that the company owes in terms of tax based on tax code
rules. Until the company makes the payment of tax, the amount of income tax payable
appears on the balance sheet section as liability. Income tax payable amount is not only based
on the accounting profit and in order to arrive at taxable profits, a number of adjustments are
done by government that alters accounting profit. Such adjustments would create differences
between the amount of income tax payable and amount of income tax expenses due to
differences in timing between the tax reporting and recognition of profits for accounting
(Azureminerals.com.au 2018).
However, with regard to Azure Minerals, it can be inferred from annual report of
company that in the current accounting period, no amount of income tax payable and income
tax expenses have been recorded. It is so because there is no accounting income generated
and thereby no accounting profits and accordingly taxable profits for creation of income tax
payable (Lanis R. and Richardson 2015).
Requirement x)
The annual report of Azure minerals limited does not present any figures of income
tax expense and income tax paid in the income statement and cash flow statement
respectively. Absence of any amount of income tax expense and income tax paid is
attributable to the comprehensive income loss generated. Income tax payments are the
operating cash flow that include effects of income tax of certain loss or gain relating to
financing or investing activities so that after tax cash flow is reflected in the subtotals of net
cash flow. Income tax expense on other hand is the amount that depicts recording of income
tax costs. Income tax payable is the liability account that helps in recording of the income tax

CORPORATE ACCOUNTING
amount that is owed by organization but is yet to be paid (Azureminerals.com.au 2018).
Expenses on other hand represent the amount that is incurred rather than being paid.
Requirement xi)
The interesting and surprising part regarding taxation is that Azure Minerals limited
have not paid any amount taxes during the financial year 2016 and 2017. This is quite
surprising fact because it depicts that no accounting income has been generated on part of
operational activities of company.
From the analysis of annual report of Azure Minerals limited, it has been ascertained
that charge for current income tax is based on the adjusted profits attributable for any
disallowed or non assessable items. Computation of income tax expense is done by using the
applicable tax rate as provided by the standard accounting taxation rule. While reviewing the
annual report regarding accounting for deferred tax, organization has employed the method of
balance sheet liability. In addition to this, the notes to financial statements present the
numerical reconciliation of the income tax expense to prima facie tax payable. Such
reconciliation provides users with items involved in the computation of such income tax
expense. Notes also depict the computation of unrecognized temporary differences that
account for deferred tax assets at the rate of 30% (Azureminerals.com.au 2018). Moreover,
total amount of net loss generated after income tax to the net cash flows from operating
activities have been reconciled. Such reconciliation is presented in the notes to financial
statement. Therefore, the interesting part in relation to realization of income tax expenses are
the reconciliation of temporary differences and any amount of net loss after income tax. Any
amount of benefits attributable from taxation is realized in future is based on the assumption
that there will not be any adverse change in income legislation. Organization while making

CORPORATE ACCOUNTING
adjustments to taxation also anticipates that benefits will be realized resulting from entity
being capable of deriving sufficient future assessable income (Lys et al. 2015).

CORPORATE ACCOUNTING
References list:
Adams, C., 2017. Understanding integrated reporting: The concise guide to integrated
thinking and the future of corporate reporting. Routledge.
Alin-Eliodor, T., 2014. Financial Statements Analysis. Journal of Knowledge
Management, 4(5), pp.62-73.
Azureminerals.com.au. (2018). [online] Available at: https://azureminerals.com.au/wp-
content/uploads/2016/09/Azure-AR-Printers-Final.pdf [Accessed 15 May 2018].
Du Rietz, S., 2018. Information vs knowledge: Corporate accountability in environmental,
social, and governance issues. Accounting, Auditing & Accountability Journal, 31(2), pp.586-
607.
Franco, I.B., Abe, M. and Kanie, N., 2018. Business as Usual: Corporate Sustainable
Accountability in Asia and the Pacific.
Joshi, S. and Li, Y., 2016. What is corporate sustainability and how do firms practice it? A
management accounting research perspective. Journal of Management Accounting
Research, 28(2), pp.1-11.
Lanis, R. and Richardson, G., 2015. Is corporate social responsibility performance associated
with tax avoidance?. Journal of Business Ethics, 127(2), pp.439-457.
Lo, S.H., 2016. In search of corporate accountability: liabilities of corporate participants.
Cambridge Scholars Publishing.
Lys, T., Naughton, J.P. and Wang, C., 2015. Signaling through corporate accountability
reporting. Journal of Accounting and Economics, 60(1), pp.56-72.

CORPORATE ACCOUNTING
Maaloul, A. and Zéghal, D., 2015. Financial statement informativeness and intellectual
capital disclosure: An empirical analysis. Journal of Financial Reporting and
Accounting, 13(1), pp.66-90.
Marshall, S., 2016. Fair trade, corporate accountability and beyond: Experiments in
globalizing justice. Routledge.
Melloni, G., Lai, A. and Stacchezzini, R., 2018. Integrated reporting and narrative
accountability: The role of preparers. Accounting, Auditing & Accountability Journal, p.1.
Narotzki, D., 2017. Corporate Social Responsibility and Taxation: A Chance to Develop the
Theory.
Sarfaty, G.A., 2015. Measuring corporate accountability through global indicators. The Quiet
Power of Indicators: Measuring Governance, Corruption, and Rule of Law, p.103.
Sethi, S., 2016. Globalization and self-regulation: The crucial role that corporate codes of
conduct play in global business. Springer.
Titman, S., Keown, A.J. and Martin, J.D., 2017. Financial management: Principles and
applications. Pearson.
Waddock, S., 2017. The difference makers: How social and institutional entrepreneurs
created the corporate responsibility movement. Routledge.
Warren, C.S. and Jones, J., 2018. Corporate financial accounting. Cengage Learning.
Watson, L., 2015. Corporate social responsibility research in accounting. Journal of
Accounting Literature, 34, pp.1-16.
Weygandt, J.J., Kimmel, P.D. and Kieso, D.E., 2015. Financial & managerial accounting.
John Wiley & Sons.

CORPORATE ACCOUNTING
Appendix:
Particulars 2015 (in
000)
2016 (in
000)
2017 (in
000)
Cash flows from operating activities:
Payments to suppliers and employees -16,47,053 -21,35,887 -24,69,194
Interest received 2,11,966 44,922 1,46,261
Other revenue 1,38,891 5,21,936 1,32,144
Expenditure on mining interest -21,37,442 -59,15,566 -58,49,257
Reimbursement of exploration expenditure 16,01,962 26,99,348 10,17,087
Net cash flows from operating activities $ -
18,31,676.0
0
$ -
47,85,247.0
0
$ -
70,22,959.0
0
Cash flows from investing activities:
Payments for property, plant and equipment and
intangibles
-49,310 -1,92,007 -18,076
Acquisition Payments for projects $
-
-18,47,931 -26,892
Proceeds from sale of plant and equipment $
7,385.00
$
-
Security bonds repaid $
-
$
45,378.00
$
-
Option payments for projects -4,58,719 $
-
$
1,40,190.00
Net cash flows used in investing activities $ -
5,08,029.00
$ -
19,87,175.0
0
$
95,222.00

CORPORATE ACCOUNTING
Cash flows from financing activities:
Proceeds from issue of ordinary shares $
33,25,483.0
0
1,51,58,375 78,10,085
Share issue costs -1,71,277 -6,97,961 -4,70,205
Prepayment of issue or ordinary shares $
-
93,685 $
-
Net cash flows used in financing activities $
31,54,206.0
0
$
1,45,54,099.
00
$
73,39,880.0
0
Net increase/(decrease) in cash and cash equivalents $
8,14,501.00
$
77,81,677.0
0
$
4,12,143.00
Cash and cash equivalents at beginning of year $
9,78,865.00
$
17,75,412.0
0
$
93,87,160.0
0
Effects of exchange rate changes on the balance of cash
held in foreign currencies
-17,954 -1,69,929 -99,354
Cash and cash equivalents at end of year $
17,75,412.0
0
$
93,87,160.0
0
$
96,99,949.0
0