Corporate Accounting: Sources of Funding and Entity Classification

Running head: CORPORATE ACCOUNTING
Corporate accounting
Name of the Student
Name of the University
Author Note

CORPORATE ACCOUNTING
Executive summary:
The paper is developed to discuss about the different types of sources of funding used by the
companies along with explaining the advantages and disadvantages of each of such source.
The movement of the items of each of the components such as liabilities and equity section
for both the companies has been done by analyzing the annual report of the company. The
annual report has been downloaded for the period of three years to analyze the trend of
movement in each of the items of the equity and liabilities.

CORPORATE ACCOUNTING
Table of Contents
Introduction:...............................................................................................................................4
Discussion:.................................................................................................................................5
Part A:........................................................................................................................................5
Answer to requirement i:............................................................................................................5
Answer to requirement ii:...........................................................................................................5
Answer to requirement iii:.........................................................................................................5
Answer to requirement iv:..........................................................................................................5
Answer to requirement v:...........................................................................................................5
Part B:.........................................................................................................................................5
Critical examination of the concepts of small proprietary company, large proprietary
company and reporting entity:...................................................................................................5
Implication of the classification of the companies in terms of reporting and compliance
requirements:..............................................................................................................................5
Conclusion:................................................................................................................................5
Reference list:.............................................................................................................................8

CORPORATE ACCOUNTING
Introduction:
The paper is developed to gain an understanding of the possible sources used by the
companies to raise funds and demonstrate an understanding of various classification of
entities for the purpose of reporting. For the evaluation of the different types of funding
source, a comparative analysis of the funds sources have been done by choosing two
companies listed on the Australians stock exchange and these two companies for the analysis
purpose include a2 Milk company and Treasury wine estates. Analysis has been done by
retrieving the relevant data from the annual report of the companies for the period of last
three years. Furthermore, the various sources of funding used by these companies has been
explained by presenting their advantage and disadvantages.
Treasury wine estates is one of the largest wine companies listed on the stock
exchange of Australia and is focused on meeting the evolving needs of the customers through
brand marketing and world class winemaking. Then focus of business is on principle
activities such as winemaking, sourcing and grape growing and marketing led by brand. A2
Milk Company on other hand listed on the stock exchange that commercializes the a2MC
branded and milk products and other related products and has remained the premium leading
milk brand and is the only range of brand that is available in the supermarket of Australia.