Corporate Accounting Notes (PDF)
Added on 2021-05-31
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Running head: CORPORATE ACCOUNTINGCorporate AccountingName of the StudentName of the UniversityAuthor Note
CORPORATE ACCOUNTING1Table of ContentsChanges in each item of cash flows statement for the firm over the past year along with thereasons for the change................................................................................................................2Comparative analysis of the company’s three broad categories of cash flows that is operatingactivities, investing activities and financing activities:..............................................................4Items of Other Comprehensive Income Statement....................................................................5Insightful explanation of each item of Other Comprehensive Income Statement.....................5Reasons for the items have not been reported in Income Statement/Profit and Loss Statement....................................................................................................................................................6Clear description of your firm’s income tax expense................................................................6Verification of the figure of tax being same as the company tax rate times the firm’saccounting income.....................................................................................................................6Deferred tax that is reported in the balance sheet along with the reasons for the record...........7Current tax assets or income tax payable recorded by the company.........................................7Verification of the income tax expense shown in the income statement same as the incometax paid shown in the cash flow statement.................................................................................7Unique characteristics in the financial statements, new insights, and other information..........8References..................................................................................................................................8
CORPORATE ACCOUNTING2Brief overview of the chosen company The chosen company is Spark Infrastructure that is listed under the ASX is the fundfor specialist infrastructure and investing in the regulated utility infrastructure withinAustralia as well as in overseas is the main objective of the company. The products andservices of the company includes the gas and electricity transmission and distribution,sewerage assets, regulated water that offers stable cash flows and comparatively low risksand it facilitates payment to the investors along with the potential long-term growth. It seeksto establish the diversified portfolio with regard to regulated utility infrastructure assets andcontinuing to be in the lead position under the Australian infrastructure investment fund(Chen, et al., 2015). Further, the values upon which the company is maintaining its growthare fairness, honesty, maximising the value of the security holder and maintenance of thehigh standards for corporate governance.Changes in each item of cash flows statement for the firm over the past year along with the reasons for the change The cash flow statement of Spark Infrastructure mainly consist of three sections thatinvolves cash flow from investing activities, operating activities, financing activities and netcash as well as cash equivalents (Duff, 2016). The items that are included in the operatingactivities involves depreciation, adjustments to net income, liabilities changes, inventorychanges, changes in accounts receivable and changes in other operating activities. It has beenseen that the total cash flow of operating activities has declined in the year 2017 to $185754from the year 2016 and 2015. The items that are included in the investment activities are capital expenses,investments and other cash flow from investment activities. It is evident that the total cash
CORPORATE ACCOUNTING3used for the investment activities decreased in the year 2016 to $271651 from $ -739156 inthe year 2015 and then decreased to $ 81084 in the year 2017(Scripp, 2016). In this cash flow statement of Spark Infrastructure, financing activities mainlyconsists of the paid dividends, net borrowings, purchase as well as sale of stocks and othercash flows from the financing activities. There has been rise in total cash used in thefinancing activities in the year 2017 to $-250534 from the year 2016 and 2015. Moreover,the change in cash and cash equivalents amounts to $ 16304 in the year 2017, $82701 in theyear 2016 and $-106151 in the year 2015 (Saeidi, et al., 2015). This reflects that there hasbeen both increase in the amount in the year 2016 from the year 2015 and then decresed inthe year 2017. The cash flow statement of this company has been shown below:Cash Flow(All numbers in thousands)Period Ending201720162015Net Income88,64181,08388,024Operating Activities, Cash Flows Provided By or Used InDepreciation1296271Adjustments To Net Income98,1481,58,5641,15,442Changes In Accounts Receivables-1,2254,315864Changes In Liabilities61-3,3742,949Changes In Inventories---Changes In Other Operating Activities---Total Cash Flow From Operating Activities1,85,7542,40,6502,07,350Investing Activities, Cash Flows Provided By or Used InCapital Expenditures-706-706-31Investments---4,97,840Other Cash flows from Investing Activities81,7902,71,651-2,41,285Total Cash Flows From Investing Activities81,0842,71,651-7,39,156Financing Activities, Cash Flows Provided By or Used InDividends Paid---Sale Purchase of Stock--4,05,424Net Borrowings--2,05,0002,05,000
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