Corporate Accounting and Taxation: Comparative Analysis of Four Listed Companies

Running Head: Corporate Accounting and Taxation
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Four Listed Companies
Corporate Accounting
Corporate Accounting
System-PPP
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Running Head: CORPORATE ACCOUNTING
Executive summary
With the ramified economic changes, each and every organization needs to maintain
the transparent business for its shareholder. In this report, comparative analyses of the four
years of four companies have been taken into consideration. These all four companies have
been facing high financial leverage and cost of capital which needs to be undertaken by the
managers if they want to operate business effectively on sustainable basis. It is analyzed that
only that company which is having high profitability could have high financial leverage so
that it could take advantage of low cost of capital to strengthen the return on capital
employed.

Running Head: CORPORATE ACCOUNTING
Table of Contents
Executive summary...............................................................................................................................1
Introduction...........................................................................................................................................3
Answer to question no-1........................................................................................................................3
CORPORATE REGULATION.............................................................................................................3
Answer to question no-2........................................................................................................................4
ACCOUNTING STANDARD SETTING.......................................................................................................4
Answer to question no-3........................................................................................................................5
Owners’ Equity......................................................................................................................................5
Ordinary Share capital.......................................................................................................................6
Other Equity Instruments...................................................................................................................6
Reserves............................................................................................................................................6
Retained profits.................................................................................................................................7
Accumulated and other comprehensive income.................................................................................7
Answer to question no-4........................................................................................................................7
Comparative analysis of four companies (Woolworths, Telstra, Wesfarmers)......................................7
Comparative analysis.........................................................................................................................9
Conclusion...........................................................................................................................................10
References...........................................................................................................................................11

Running Head: CORPORATE ACCOUNTING
Introduction
Organizaiton is accompanied with the complex set of activities in which various
functions are performed. However, with the increasing complexity, managers and
accountants needs to disclose the proper details in its books of account as per the IFRS rules
and regulations so that they could make the business more transparent to stakeholders. In the
starting two questions on the corporate regulations and accounting standards have been
analyzed. After that four companies named, Woolworths, Wesfarmers, Treasury Wine Estates
Ltd and The a2 Milk Co Ltd have been assessed to evaluate their capital structure and
owner’s equity.
Answer to question no-1
CORPORATE REGULATION
With the increasing complexity, managers need to disclose the proper details in its
books of account as per the IFRS rules and regulations to keep the business more transparent
to stakeholders. The main reason of adopting the voluntary disclosure of the financial
information of company will keep the business more transparent. It is analyzed that if
company keeps its business more transparent then it will allow stakeholder to strengthen their
investment decisions for the best investment decision. If managers keep the business
reporting more transparent and follow volunteer reporting frameworks then it will result to
more informed decisions for the shareholders. It is analyzed that shareholders are the key
owners of the company who invest capital in the business functioning of Organizaiton
(Brigham, Ehrhardt, Nason, & Gessaroli, 2016). If managers establish the harmonization in
its domestic and international reporting frameworks then it will not only meet the current
legal reporting obligation but also result to sharing the key information with the stakeholders.
It is analyzed that when all the technical issued is identified than the mean work of IASB start
to make research on all the issues. It is sometime impossible for board to make research on
everything so they take help of AASB For the research Nonetheless, managers and directors
are drivers of the company who takes imperative decisions in the best interest of the
organization. They also have responsibility to share imperative information with the
stakeholders so that these shareholders could evaluate where their money have been deployed
in the business. It is further analysed that IASB does not mandate application of the IFRS
rules and regulation to be followed by the member countries. These countries are given