Corporate Accounting: AMA Group Limited

CORPORATE ACCOUNTING

EXECUTIVE SUMMARY
Corporate accounting helps for specific events of organization such as absorption,
amalgamation and preparation of consolidated financial statements. The present report had
considered retailing industry as AMA Group Limited and Adairs Limited with its different
elements of corporate accounting. Initially, it will discuss about owner's equity and comparative
analysis of capital structure of both selected organizations. In the similar aspect, it has shown
importance of other comprehensive income which are necessary for performance evaluation.
Further, it is conculded by stating effective tax rate and difference among cash and book tax rate.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
OWNERS EQUITY.........................................................................................................................1
1. Presenting each item of equity with its changes from past years............................................1
2. Presenting debt equity position of both organizations............................................................2
CASH FLOW STATEMENT..........................................................................................................4
3.Presenting items of Cash flow with its changes from past year...............................................4
4. Presenting comparative analysis of broad categories of cash flow.........................................5
5. Presenting insights about comparative analysis of both companies.......................................6
OTHER COMPREHENSIVE INCOME STATEMENT................................................................7
6. Presenting items related to other comprehensive income statement.......................................7
7. Presenting reason for not stating these items in income statement ........................................7
8. Presenting comparative analysis of other comprehensive income statements........................7
9. Presenting importance of OCI in performance evaluation......................................................9
ACCOUNTING FOR CORPORATE INCOME TAX....................................................................9
10. Represent tax expenses in the latest financial statements of both companies.......................9
11. Presenting effective tax rate................................................................................................10
12. Interpreting deferred tax assets and liabilities with reference of balance sheet..................10
13. Presenting change in deferred tax asset and liability..........................................................10
14. Presenting cash tax amount with application of book tax, DTA and DTL.........................11
15. Presenting cash tax rate.......................................................................................................12
16. Presenting difference between cash tax and book tax rate..................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Corporate accounting is a specialised accounting branch which deals with business entity
for preparing cash flow and financial statements, accounting with appropriate interpretation and
analysis of its outcomes. It also provides help for particular events such as absorption,
amalgamation and preparation of consolidated financial statements. The present report will
discuss about retailing industry as AMA Group Limited and Adairs Limited on basis of different
components of corporate accounting. Initially, it will articulate about owner's equity and
comparative analysis of debt equity position of both selected organizations. In the same series, it
will show comparative analysis of cash flow statement with each item and alterations from past
three consecutive years. This report will discuss about other comprehensive income statements
(OCI) and items which are included in this statement. In this context, movements from year 2015
to 2017 will be discussed and reasons for not including items of OCI in profit and loss account.
Further, this report will present accounting for corporate income tax which consists of effective
tax rate, cash tax rate and book tax rate with its differences.
OWNERS EQUITY
1. Presenting each item of equity with its changes from past years
AMA Group Limited
2015 2016
% change
in 2016 2016 2017
% change in
2017
Contributed
equity 74904 172149 129.83% 172149 181691 5.54%
Reserves 0 3059 0.00% 3059 3054 -0.16%
Retained
earning -26534 -28626 7.88% -28626 -22122 -22.72%
Total Group
Interest 48370 146582 203.04% 146582 162623 10.94%
Non-
Controlling
interest 0 197 0.00% 197 232 17.77%
Total Equity 48370 146779 203.45% 146779 162855 10.95%
1