Accounting Name of the university Student ID Number 3 Corporate accounting Name of the university Student ID

Net cash used in or provided by the investing activities – cash flow from the investing activities under the cash flow statement reports the changes in the company’s cash position owing to the losses or gains from the investment activities and the changes resulted from the amount spend for investment activities (Sethi, 2016). Net cash used in or provided by the financing activities – various items that may be included under the financing activities are the sale or purchase of stock issuance of debt like bonds, payment of dividends and repayment of

Running head: CORPORATE ACCOUNTING
Corporate accounting
Name of the student
Name of the university
Student ID
Author note

1CORPORATE ACCOUNTING
Table of Contents
Answer (i)...................................................................................................................................2
Answer (ii).................................................................................................................................3
Answer (iii)................................................................................................................................4
Answer (iv).................................................................................................................................5
Answer (v)..................................................................................................................................6
Answer (vi).................................................................................................................................6
Answer (vii)...............................................................................................................................7
Answer (viii)..............................................................................................................................7
Answer (ix).................................................................................................................................8
Answer (x)..................................................................................................................................8
Answer (xi).................................................................................................................................9
Reference..................................................................................................................................10
Appendix..................................................................................................................................12

2CORPORATE ACCOUNTING
The main objective of the report is to analyse the financial statement of Altura Mining
Limited that include the income statement, cash flow statement and balance sheet of the
company. For the purpose of analysing last 3 years that is for the year 2015, 2016 and 2017
annual report of the company will be taken into consideration. The report will focus on the
movement of cash flows over the last 3 years, items included in the comprehensive income
statement of the company and tax expenses of the company (Alturamining.com, 2018).
Answer (i)
From the annual report of Altura Mining it has been identified that the cash flow
statement of the company is segregated into 3 broader headings. Those are – net cash flow or
cash used in operating activities, net cash used in or provided by the investing activities and
net cash provided by or used in the financing activities.
 Net cash flow or cash used in operating activities – this section delivers the
information regarding the company’s cash generating abilities from its core activities
(Chang et al., 2014). It includes the net income, non-cash expenses and changes in the
working capital. Amortization expenses and the depreciation expenses are normally
treated as non-cash expenses (Sarfaty, 2015).
 Net cash used in or provided by the investing activities – cash flow from the investing
activities under the cash flow statement reports the changes in the company’s cash
position owing to the losses or gains from the investment activities and the changes
resulted from the amount spend for investment activities (Sethi, 2016).
 Net cash provided by or used in the financing activities – various items that may be
included under the financing activities are the sale or purchase of stock issuance of
debt like bonds, payment of dividends and repayment of debt (Brooks, 2015).

3CORPORATE ACCOUNTING
Looking into the cash flow statement of the company over the last 3 years it can be
recognized that there is significant increase is the cash used in investing activities for the year
2017 as compared to the previous year. The reason of the increase was the purchase of plant,
property and equipment amounting to $ 35,019,000 (Alturamining.com, 2018).
Answer (ii)
Particulars
2017
($'000)
2016
($'000)
2015
($'000)
Net cash used in operating activities
-
5,557.00
-
4,054.00
-
2,954.00
Net cash (used in) / provided by investing activities
-
43,581.00
-
1,714.00
-
1,844.00
Net cash provided by (used in) financing activities 40,309.00 25,817.00 3,574.00
2017 ($'000) 2016 ($'000) 2015 ($'000)
-50,000.00
-40,000.00
-30,000.00
-20,000.00
-10,000.00
-
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
Net cash used in
operating activiti
es
Net cash (used in)
/ provided by inv
esting activities
Net cash provide
d by (used in) fin
ancing activities
 Operating activities – From the above table and graph with regard to 3 broader heads
under the cash flow statement of the company it can be identified that the cash used in
operating activities of the company for the year ended 2015 was $ 2,954,000, for the
year ended 2016 it was $ 4,054,000 and for the year ended 2017 it was $ 5,557,000.

4CORPORATE ACCOUNTING
Therefore the cash used for the operating activities of the company was in increasing
trend over the last 3 years period (Titman, Keown & Martin, 2017).
 Investing activities - From the above table and graph with regard to 3 broader heads
under the cash flow statement of the company it can be identified that the cash used in
investing activities of the company for the year ended 2015 was $ 1,844,000, for the
year ended 2016 it was $ 1,714,000 and for the year ended 2017 it was $ 43,581,000
(Alturamining.com, 2018). Therefore, it can be stated that though the cash used for
investing activities has been reduced over the years from 2015 to 2016, it increased
significantly over the years from 2016 to 2017. The reason for significant increase
was the purchase of plant, property and equipment in the years 2017 (Weyg, Kimmel
& Kieso, 2015).
 Financing activities - From the above table and graph it can be identified that the cash
inflow from financing activities of the company for the year ended 2015 was $
3,574,000, for the year ended 2016 it was $ 25,817,000 and for the year ended 2017 it
was $ 40,309,000. Therefore, it can be stated that the cash flow of the company from
financing activities were in increasing trend (Watson, 2015). However, the increase
amount was significant in 2016 as compared to 2015 and in 2017 as compared to
2016. The reason for significant increase was the amount received from the issue of
shares.
Answer (iii)
Various items those were included in the other comprehensive income statement of
the company are profit or loss of the year that amounted to loss of $ 61,65,000, items that can
be reclassified under profit and loss statement that includes changes in the fair values of the
financial assets those are available for the purpose of sale that amounted to -$ 509,000

5CORPORATE ACCOUNTING
and the amount of exchange difference on account of translation from the foreign controlled
companies amounted to $ 14,38,000. Further another item included in the comprehensive
income statement of the year was the amount of other comprehensive income amounted to $
14,38,000. After adjusting all these items total amount of comprehensive loss for the year
2017 amounted to $ 52,36,000 (Waddock, 2017).
Answer (iv)
Items those are recognised as revenue are the items from which the company can earn
any amount as income. The revenues are recorded by the company on accrual basis and like
the cash receipts those are recorded on receipt basis. The other expenses those are recognized
by the company under the comprehensive income statement are the cost expensed by the
company for the operations of the company (Pavlović & Bogdanović, 2013).
Exchange difference states the amount arises from the translation of the foreign
operations that are directly transferred to foreign currency translation reserve of the company
as the separate component under equity. The amounts of differences are recorded in
comprehensive income statement only after disposal of foreign operation (Reid & Myddelton,
2017).
The financial assets those are available for sales are the financial assets that includes
listed equity securities those are marketable, non-derivative securities those are either not
classified under any category or those are designated under the category of financial assets
those are available for sales. It further includes the non-current assets except where the
management pretends to sale the investment within 1 year period from the close of the
reporting period. The investment are categorized as available for sale if the securities do not
have fixed period for maturity and determinable or fixed payments and the managements are
likely to hold the assets for medium term to long term period.

6CORPORATE ACCOUNTING
Answer (v)
Other comprehensive income of the company are those expenses, incomes, losses or
income as per IFRS (international financial reporting standard) as well as GAAP (generally
accepted accounting principles) those are not included under the net income recorded in the
income statement. It provides the reader with more clear and transparent view of the
company’s financial statement. It states that the items are listed after the net income of the
income statement. Revenues, gains, losses and expenses those are recognized under other
comprehensive income statement when they have not been recognized yet. The items
recorded in the income statement when the required transactions are completed, for instance
the investment has been sold. Therefore, if the entity has made any investment in any bond
and the value for that bond changes, the difference is recognized in other comprehensive
income statement. Once those bonds are sold the realizable loss or gains are shifted from the
other comprehensive income statement and are recorded under the income statement or profit
and loss statement. Items those are generally recognized under the other comprehensive
statement are –
 Losses or gains from foreign currency translation
 Unrealized holding losses or gains arising from investment classified as available for
the purpose of sales.
Answer (vi)
The charges against the currents income tax expenses of the company are based on
result of the year after adjusting the disallowed or non-assessable items. It is computed
through using the rate of tax that has been substantially enacted or enacted on the balance
date for each of the jurisdiction. The amount is adjusted for the changes in the deferred tax
liabilities and assets those are attributable for temporary differences and for the losses

7CORPORATE ACCOUNTING
generated from unused tax. The income tax expenses of the company for the year 2015 was $
320,000 and for the year 2016 it was $ 778,000. However for the year 2017 the amount of
income tax benefit of the company was $ 534,000.
Answer (vii)
The applicable tax rate of the company for the year ended 2016 was 30% and for 2017
was 27.5%. The losses of the company for those years were $ 30,603,000 and $ 6,449,000
respectively for 2016 and 2017. However, the income tax expenses of the company for the
year 2016 amounted to $ 778,000 and income tax benefit for the year 2017 amounted to $
534,000 does not match with the income tax rate. The tax expenses of the company as
charged in the income statement does not match with the applicable tax rate as there are
adjustments for various items like share compensation costs, non-deductible expenses, over
or under provision in previous year, difference in the tax rates of overseas and effect of the
de-recognition of current year tax losses.
Answer (viii)
Deferred tax is recognized through balance sheet liability method with regard to the
temporary difference on account of tax bases for the liabilities and assets and the carrying
amounts under the financial statements. The deferred tax is computed at the substantially
enacted or enacted rate of tax by the closing of reporting period and is likely to be applied for
the period under which the liability is settled or the assets is recognised (Laux, 2013).
Deferred tax is realised for the amount which is apparent that the future profits on account of
tax will be available for which the unused losses from tax and deductible temporary
differences can be utilised. Deferred tax liabilities and assets are offset while legally
enforceable right is there to offset the current tax liabilities and assets and while the balances
from the deferred tax accounts are related to same authority for taxation (Warren & Jones,

8CORPORATE ACCOUNTING
2018). Deferred tax assets of the company for the year ended 2016 was amounted to $
524,000. However, the company did not identify any amount under deferred tax for the year
ended 2017.
Answer (ix)
There is no amount recorded by the company as current tax. However, the prepaid
current tax recorded in the balance sheet of the company amounted to $ 248,000 for the year
2016 and $ 272,000 for the year ended 2017. There is difference between income tax payable
and the expenses of income tax as the income tax payable is the amount that is associated
with taxable profit or taxable loss of the accounting year. The amount of income tax payable
is calculated by the applicable substantially enacted or enacted tax rates on the date of
reporting. The amount of current tax is recorded as expenses or income under the income
statement of the company (Narotzki, 2017). On the other hand, the amount of income tax
expenses is the amount the company owes as per the accounting rule with regard to standard
business. The income tax payable is the amount company owes based on the tax codes.
Income tax payable amount is recorded in the income statement as an expense (Melloni &
Stacchezzini, 2018). Due to these differences there are differences in income tax expenses of
the company and income tax payable by the company.
Answer (x)
The income tax expenses of the company for the year 2016 amounted to $ 778,000
and income tax benefit for the year 2017 amounted to $ 534,000. However, the income tax
paid as per the cash flow statement for the year 2016 amounted to -$ 75,000 and for the year
2017 amounted to $ 320,000 (Marshall, 2016). The reason for variance is that the amount of
tax expenses recorded as income tax payable includes different expenses like selling
expenses, administrative expenses, operating expenses, financing expenses and other

9CORPORATE ACCOUNTING
expenses, if any. On the contrary, the income tax recorded by the company in the cash flow
statement is the charges of tax on the operating activities of the entity (Maaloul & Zéghal,
2015).
Answer (xi)
New insights – from the income tax treatment of Altura Mining Limited various new insights
gained are that the company disclose the revenues at top of income statement. Then the
expenses are charged against the income of the company. On taxable income of the entity the
tax is deducted from that to get the income available after income tax. Another insight gained
was that expenses from accrual accounting rules vary with rules applicable for filling up the
tax returns.
Difficult and confusing part – the most difficult and confusing part in the annual report of
the company was deferred tax. Deferred taxes are recognized for temporary differences that
are under control of the company that the differences will be reversed in the future period.
However, controversies are there regarding the ability of the company to reverse the
difference. No specific indication is mentioned that can be considered as probable for the
reversal.
It is concluded from above discussion that the company complies with all the
requirement of ATO (Australian Tax Office) with regard to the tax treatment of the items
included under the financial statement of the company. The company also provided proper
details and justification for the treatment of tax through the notes to account. Further, the
company records all the expenses, revenues in the financial statement after giving effect of
GST (goods and services tax).

10CORPORATE ACCOUNTING
Reference
Alturamining.com. (2018). Altura Mining | Charging Forward with Lithium. [online]
Available at: https://alturamining.com/ [Accessed 20 May 2018].
Brooks, R. (2015). Financial management: core concepts. Pearson.
Chang, X., Dasgupta, S., Wong, G., & Yao, J. (2014). Cash-flow sensitivities and the
allocation of internal cash flow. The Review of Financial Studies, 27(12), 3628-3657.
Laux, R. C. (2013). The association between deferred tax assets and liabilities and future tax
payments. The Accounting Review, 88(4), 1357-1383.
Maaloul, A. & Zéghal, D., (2015). Financial statement informativeness & intellectual capital
disclosure: An empirical analysis. Journal of Financial Reporting &
Accounting, 13(1), pp.66-90.
Marshall, S., (2016). Fair trade, corporate accountability & beyond: Experiments in
globalizing justice. Routledge.
Melloni, G., Lai, A. & Stacchezzini, R., (2018). Integrated reporting & narrative
accountability: The role of preparers. Accounting, Auditing & Accountability Journal,
p.1.
Narotzki, D., 2017. Corporate Social Responsibility & Taxation: A Chance to Develop the
Theory.
Pavlović, M., & Bogdanović, J. (2013). Cash flow statement. Škola biznisa, (3-4), 129-147.
Reid, W., & Myddelton, D. R. (2017). The meaning of company accounts. Routledge.

11CORPORATE ACCOUNTING
Sarfaty, G.A., (2015). Measuring corporate accountability through global indicators. The
Quiet Power of Indicators: Measuring Governance, Corruption, & Rule of Law,
p.103.
Sethi, S., (2016). Globalization & self-regulation: The crucial role that corporate codes of
conduct play in global business. Springer.
Titman, S., Keown, A.J. & Martin, J.D., (2017). Financial management: Principles &
applications. Pearson.
Waddock, S., (2017). The difference makers: How social & institutional entrepreneurs
created the corporate responsibility movement. Routledge.
Warren, C.S. & Jones, J., (2018). Corporate financial accounting. Cengage Learning.
Watson, L., (2015). Corporate social responsibility research in accounting. Journal of
Accounting Literature, 34, pp.1-16.
Weyg&t, J.J., Kimmel, P.D. & Kieso, D.E., (2015). Financial & managerial accounting.
John Wiley & Sons.

12CORPORATE ACCOUNTING
Appendix
Cash flow statement
Particulars 2017
($'000)
2016
($'000)
2015
($'000)
Cash flows from operating activities
Receipts from customers 1,473.
00
2,293.
00
4,226.
00
Payments to suppliers and employees -
7,731.00
-
6,369.00
-
7,243.00
Sundry income 62.
00
82.
00
86.
00
Interest received 319.
00
23.
00
64.
00
Interest paid
-
-
8.00
-
23.00
Income tax paid 320.
00
-
75.00
-
64.00
Net cash used in operating activities -
5,557.00
-
4,054.00
-
2,954.00
Cash flows from investing activities
Expenditure on exploration and evaluation activities -
8,566.00
-
3,100.00
-
834.00
Purchase of property, plant and equipment -
35,019.00
-
12.00
-
45.00
Proceeds / (payments) from held to maturity investments 1,230. -

13CORPORATE ACCOUNTING
- 00 1,000.00
Proceeds from sale of property, plant and equipment 4.
00
168.
00
35.
00
Net cash (used in) / provided by investing activities -
43,581.00
-
1,714.00
-
1,844.00
Cash flows from financing activities
Proceeds from the issue of shares ‐ net of transaction costs 40,309.
00
25,848.
00
3,791.
00
Payment of hire purchase liabilities
-
-
11.00
-
17.00
Proceeds of borrowings 300.
00
Repayment of borrowings
-
-
20.00
-
500.00
Net cash provided by (used in) financing activities 40,309.
00
25,817.
00
3,574.
00
Net increase / (decrease) in cash and cash equivalents held -
8,829.00
20,049.
00
-
1,224.00
Cash and cash equivalents at the beginning of year 22,132.
00
2,092.
00
3,403.
00
Effect of exchange rate changes on cash holdings in foreign c
urrencies
5.
00
-
9.00
-
87.00
Cash and cash equivalents at the end of year 13,308.
00
22,132.
00
2,092.
00