Corporate Accounting - Wesfarmers Limited

Running Head: CORPORATE ACCOUNTING
CORPORATE ACCOUNTING
Name of the Student
Name of the University
Author Note

1CORPORATE ACCOUNTING
Abstract
Corporate accounting is accounting process that is dedicated to single company operations.
The activity of corporate accounting is performed for ascertaining operational and financial
status of company. Especially, the investors are interested to know firm’s financial strength in
which they purchase some of stock. It is performed for communicating liabilities and assets
of firm. Hence, this report aims to discuss sources of fund used by Wesfarmers and Telstra
Group, its evolution, merits and shortcomings of different fund sources, concept of AASB
137, assets categories recorded by company and measurement basis used by company.
Hence, it is concluded from the analysis that both the company uses debt and equity as their
sources of fund.

2CORPORATE ACCOUNTING
Table of Contents
Introduction................................................................................................................................3
Background of Company.......................................................................................................3
Discussion..................................................................................................................................4
Sources of Fund......................................................................................................................4
Evolution of Fund Sources.....................................................................................................5
Percentage of Fund Generated Internally and Externally......................................................6
Merits and Shortcomings of Different Sources of Fund........................................................6
Merit and Shortcomings of Equity Finance.......................................................................6
Merit and Shortcomings of Debt Finance..........................................................................7
Liabilities shown in Balance-Sheet........................................................................................8
Key Provisions under AASB 137..........................................................................................9
Reference to AASB 137 in Annual Report of Selected Company.........................................9
Assets Categories Recorded by Selected Companies..........................................................10
Measurement Basis Used by Company for Recorded Assets Class....................................11
Conclusion................................................................................................................................13
Reference..................................................................................................................................14

3CORPORATE ACCOUNTING
Introduction
Every entity has to perform accounting activity. It is done for identifying its financial
state. Corporate accounting is the special accounting branch that deals with companies
accounting, final accounts preparation and the statements of cash flow, interpretation and
analysis of financial results and accounting of companies for special events such as
absorption, amalgamation and consolidated balance sheet preparation. It deals with the
processes, for instance preparation of financial records, cash flow statement, balance sheet
and others. It is used for handling unique processes of businesses. Corporate accounting is
performed for ensuring that company’s financial activities complies with laws and regulation,
which is stipulated by the oversight bodies (Calopa, Horvat and Lalic 2014). Hence, this
report aims to discuss different fund sources raised by companies, evolution of fund sources,
concepts of AASB 137 and lastly, identification of all assets categories and measurement
basis used by company for each assets class will be done.
Background of Company
Wesfarmers Limited
Wesfarmers Limited is the Australian company and it is headquartered in Perth. The
company is having predominantly interests in New Zealand and the Australian retail,
fertilizers, chemicals, mining, safety and industrial products. It is engaged in different
operations of business such as hotels, liquor, convenience stores, home improvement,
supermarkets, office supplies and industrial divisions with the businesses in energy,
fertilizers, coal, chemicals, safety and industrial products. This company has been grown as
one of the largest listed company of Australia (Wesfarmers.com.au. 2020).