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Corporate Accounting Assignment Sample pdf

   

Added on  2021-06-17

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Running head: CORPORATE ACCOUNTING Corporate Accounting Name of the StudentName of the UniversityAuthor Note
Corporate Accounting Assignment Sample pdf_1
CORPORATE ACCOUNTINGIntroduction:The report is prepared for evaluating the business activities and financial performanceof company listed in Australian stock exchange. For this purpose, company operating inmaterials industry named Newcrest Mining limited is selected. Newcrest Mining limited isone of the largest mining companies of the world that is based in Australia. Main activities oforganization are to engage in development, exploration and sale of gold (Newcrest.com.au,2018). Financial performance of company is analyzed by evaluating the capital structure andsource of funding of company. Any changes in the accounting policies have been identifiedfor elucidating its compliance with applicable accounting standards. Furthermore, assets suchas plant, property and equipment along with intangible assets are evaluated by describing therelated accounting policies and the impairment. Discussion:Business and operating activities:Core business of company:The principal activities of Newcrest mining is to explore and involve in the operationsand development of mining along with selling gold and copper concentrate. Operations ofmining are subjected to particular environmental regulations as a part of environmentalapproval and operating license. Organization has world class portfolio of substantial reservesof gold, operating mines and strong pipeline of options for growth that is primarily located inAsia pacific region. In addition to this, the group has experience in commissioning anddeveloping both smaller and larger scale operations. The recovery of higher grade epithermaldeposits is optimized by usage of underground methods of mining and range of low cost bulk.One of the key objectives of exploration activities of Newcrest is to establish long term
Corporate Accounting Assignment Sample pdf_2
CORPORATE ACCOUNTINGmining operations by securing large mineral provinces and districts. Some of the principaltargets of company are epithermal gold silver deposits, large porphyry of deposits of gold andcopper, sediment and orogenic gold deposits. Moreover, it is recognized by Newcrest thatrisk is inherent to business and value of business is protected by the effective management ofrisks. Techniques of risk management are an integral part of decision making and process ofcrisis management is implemented by the group. For ensuring the management of risks,effective risk financing strategies are employed by group. Industry in which company operates:Newcrest Miming limited operates in metal and mining industry prioritizing onimportance of sustainability and safety. By virtue of geographies and industry in whichNewcrest operates, group is exposed to number of financial risks. Mining industry ofAustralia is experiencing boom and creating high level of demand for the specializedtechnologies development. There are over seven hundred companies involved in thedevelopment, exploration and production of mineral resources and the sector includes largestdiversified resource companies such as Rio Tinto and BHP Billiton Limited. Some of the topcompetitors of Newcrest Mining limited involve BHP Billiton Limited, Freeport McmoranInc and Newmont Australia Pty Limited. Finances and financial performance:The financial performance of company is illustrated by analyzing the capital structure,source of funding and applicable accounting standards. Financial structure and funding source of company:The financial performance of Newcrest Mining limited is driven by continued focuson operational discipline, safe cash generation and profitable growth. A final unfranked
Corporate Accounting Assignment Sample pdf_3
CORPORATE ACCOUNTINGdividend of US 7.5 cents per share was paid as determined by company in regard to financialperformance. Financial and operating performance of company in current period isconsiderably impacted by geotechnical events that results in the suspension mining activities.There has been decline in sales revenue from US $ 3295 in year 2016 as against US $ 3477 inyear 2017. A considerable increment has been witnessed in gross profit from US $ 694 inyear 2016 as against $ 868 in year 2017 (Newcrest.com.au, 2018). Over the last three years, there has been considerable improvement in the financialmetrics of Newcrest mining limited. Financial performance and capital commitments ofcompany is completely balanced by the dividend policies of Newcrest Limited. The capitalstructure of company comprised of net debt that involves $ 1991 million of corporate bondless $ 492 million of cash and cash equivalent. Total amount of equity comprised of reserves,accumulated losses and issued capital of amount US $ 53 million, US $ 4154 and US $ 11657respectively for year 2017. The amount of equity that is attributable to owners of parentcompany stood at US $ 7540. In the current year, total amount of current liabilities stood at $664 and current assets stood at US $ 1249. Current assets comprised of cash and cashequivalent, trade and receivables, other financial assets, inventories, current tax assets andother assets. Current liabilities on other hand comprised of borrowings, trade and otherpayables, current tax liability, provisions and borrowings (Schaltegger & Burritt, 2017).Noncurrent liabilities comprised of provisions, borrowings, deferred tax liabilities and otherfinancial liabilities totaling to US $ 3385. Key elements of financial performance:The directors report present several elements of financial performance that includesstatutory profit, underlying profit, cash flow from operating profits, free cash flow, EBITDAmargin, EBIT margin, gearing ratio, net debt to EBITDA, ROCE, price of shares, earnings or
Corporate Accounting Assignment Sample pdf_4

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