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Corporate Accounting Assignment Sample (pdf)

   

Added on  2021-06-14

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Running head: CORPORATE ACCOUNTINGCorporate AccountingName of the StudentName of the AssignmentAuthor’s Note

1CORPORATE ACCOUNTINGKey Elements of Financial PerformanceKey elements of financial performance show the overall financial achievements of thecompanies for the particular year. In the 2017 Annual Report, Telstra has showed four keyelements of financial performance that indicates the financial achievement of the company forthe year 2017. The first element is Total Income. As per the company, there was a rise in thetotal income by 4.3% to $28.2 billion. The reported total income of Telstra for the year 2017 and2016 are $28,205 million and $27,050 million respectively (telstra.com.au, 2018).The second element of key performance is Net Profit after Tax from continuingoperation. According to the 2017 Annual Report of Telstra, the newt profit after tax fromcontinuing operation of Telstra was up by 1.1% to $3.9 billon. The reported net profit after taxfrom continuing operation of the company was $3,874 million (telstra.com.au, 2018).The third element of key financial performance of Telstra was that the company returned$5.2 billion to the shareholders via dividend and buy-backs of shares. As per the Statement ofCash Flows in the 2017 Annual Report of Telstra, the company made a payment of $3,736million and $1,502 million in the year 2017 for dividends and buy-backs of shares respectively(telstra.com.au, 2018).The fourth element of key financial performance for Telstra is the payment of dividend of31% per share for the year 2017. These are the four key elements of financial performance forthe year 2017 of Telstra (telstra.com.au, 2018).

2CORPORATE ACCOUNTINGEvents after the Reporting DateAccording to the 2017 Annual Report of Telstra, Section 7.5 Events after reporting date,there is not any cases or circumstances happened after the reporting date that is 30 June, 2017that has impact on the operations, results of operation and state of affair of the company.However, Telstra has made the payment of their final dividend for the year 2017 after thereporting date that is on 17 August 2017 (telstra.com.au, 2018). For this reason, there was notany provision raised by the company as at 30 June 201. As per section 4.1 Dividends in thefinancial statement notes, Telstra makes the payment of their dividends two times in a year thatis an interim dividend and a final dividend. Telstra has made the payment of their final dividendsafter the reporting date of 2017 (telstra.com.au, 2018). Changes in Accounting PoliciesAs per the 2017 Annual Report of Telstra, the company has made some changes in theaccounting policies for the year 2017 and disclosed in the annual report. The first amendmentscan be seen in the accounting policy of AASB 2014-3 ‘Amendments to Australian AccountingStandards - Accounting for Acquisition of Interests in Joint Operations’ and the major reasonfor this amendment is to guide in accounting of acquisition of interest in joint operations(legislation.gov.au, 2018). The next change in accounting policy was in AASB 2014-4 ‘Amendments to AustralianAccounting Standards - Clarification of Acceptable Methods of Depreciation andAmortization and the reason of change is the establishment of basics for depreciation andamortization, the use of revenue based methods for deprecation calculation and the clarificationof revenue (aasb.gov.au, 2018).

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