Enhanced sources of funds for ASX listed companies

ABSTRACT 2 INTRODUCTION 4 MAIN BODY4 PART (A) 4 (I) Items which are recorded in the owner's equity section of both companies. 10 PART (B) 12 Concept of small, large proprietary company and reporting entity.12 CONCLUSION 13 REFERENCES 14 APPENDICES 15 INTRODUCTION The corporate accounting can be defined as a field of accounting that is associated with the process of managing entire accounting functioning in companies (Watson, 2015).

CORPORATE AND
FINANCIAL
ACCOUNTING

ABSTRACT
The project report abstracts about various kind of sources by which a company can
enhance their funds. As well as about two ASX listed companies' source of funds are evaluated
for three years. Further, different kind of entities are summarized in terms of compliance and
reporting requirement.

Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
PART (A).........................................................................................................................................4
(I) Items which are recorded in the owner's equity section of both companies..........................4
(ii) Explanation of the movement in each item recorded under the owner equity section.........6
(iii) Explanation of items that are recorded under liabilities section..........................................7
(iv) Explanation of the movement in each item recorded under liabilities section.....................8
(v) Advantages or disadvantages of each sources of fund each of selected companies............10
PART (B).......................................................................................................................................12
Concept of small, large proprietary company and reporting entity..........................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14
APPENDICES ..............................................................................................................................15

INTRODUCTION
The corporate accounting can be defined as a field of accounting that is associated with
the process of managing entire accounting functioning in companies (Watson, 2015). In addition,
it is related to the implementation of accounting functions in some special case such as
amalgamation etc. This is broad part of accounting because in it all type of financial accounts are
prepared. The financial accounting can be defined as a type of accounting that is related to the
tracing entire financial transaction of companies. As well as under this only financial accounts
are prepared like balance sheet, income statement etc. Under the project report two ASX listed
companies are selected which are Dexus limited and Amcor plc. The Dexus limited company
operates in commercial property sector and its headquarter is in Sydney, Australia. On the other
hand, the Amcor plc is a global packaging company which produce flexible packaging and
containers for food, beverage etc. Its headquarter is at Melbourne, Australia.
In the project report, these companies' financial statements are analysed to assess the
items that are recorded in equity section, liability section. In addition, benefits and limitations of
each source of fund of both companies are described. In the end part of project report, concept of
small, large and reporting entity is mentioned.
MAIN BODY
PART (A)
(I) Items which are recorded in the owner's equity section of both companies.
Owner's equity- This is one of the important section which is included in balance sheet of
companies. Basically, the owner's equity defines about investment of owner in the business
venture.
Dexus limited company: In this company's owner equity section, various kind of items are
included that are as follows:
 Common stock- It can be defined as a kind of security which shows the ownership in an
organisation. As well as the holder of common stock have the right of voting and
selection of board members.

 Other equity- Apart from above common stocks, there are some more other equities such
as preferred stock, paid up capital at par value etc.
 Retained earnings- It can be defined as the amount of net income that remains after
making payment of all shareholders (Crowther, 2018). In broad sense, this is a kind of
amount which left after paying dividend to shareholders.
 Accumulated other comprehensive income- It can be defined as a kind of income that
includes those profits and losses which are unrealized in the equity section of companies.
Amcor limited company: In this company's owner's equity section below mentioned items are
included such as:
 Common stock
 Other equity
 Additional paid up capital- This can be defined as the value of share capital more then its
par value (Maas, Schaltegger and Crutzen, 2016). It can be created in the case when
companies issue new shares while it can be minimised in the case when companies
repurchase its shares.
 Retained earnings
 Treasury stock- It can be defined as a kind of stock that is re-acquired from shareholders.
In other words, when an organisation purchases back shares then the cost of repurchasing
of stock is included in the owner's equity section.
 Accumulated other comprehensive income
So these are the items which are included in balance sheet of both of companies.
(ii) Explanation of the movement in each item recorded under the owner equity section.
In the project report, three years' financial informations are included in which amount of
equity section is different in all three years. Below the movement in each item of owner's equity
is mentioned that is as follows:
Dexus limited company:

 Common stock- The amount of common stock in this company was of $6402 million in
year 2017 that just increased by $ 2 million and became of $ 6404 million in year 2018.
While in year 2019, it raised by huge margin of 14.83 % and became of $ 7354 million.
The reason of changing in amount of common stock is that company is inviting more
shareholders to invest.
 Other equity- The other equity's amount was of $ 6 million in year 2017 that changed in
negative manner and became of ($ 16 million) in year 2018. While in next year 2019, it
became of $ 16 million. It shows that company's amount of other equity is vary in all
three years.
 Retained earnings- The retained earnings of company was of $ 2373 million in year 2017
which increased by 52.38 % and became of $ 3616 in year 2018. As well as in year 2019,
it became of $ 4336 million. The reason of this difference is that company's net profit is
increasing year by year and they are able to retain more earnings after making payment to
shareholders.
 Accumulated other comprehensive income- The amount of this income was of $ 43
million in year 2017 that remain same in next year. While in year 2019, it decreased by
11.62 % and became of $ 38 million. The reason for which the amount of this income has
decreased is that, there are less amount of income and expenses which are unrealized in
year 2019.
Amcor limited company:
 Common stock- The amount of common stock was of $ 1416 million in year 2017 that
decreased by 1.69% and became of $ 1392 million. While in the year 2019, it became just
of $ 16 million. The reason of changing this amount is that company is not inviting
external shareholders to invest.
 Other equity- The amount of other equity was negative in year 2017 and 2018 that is of
($ 605 million) and ($ 608 million). While in year 2019, company did not have any other
equity.
 Additional paid up capital- The company did not have any amount of additional paid up
capital in year 2017 and 2018. In year 2019, they had paid up capital of $ 6008 million.

The reason of this variation can be that company's owners are not investing additional
capital in year 2017 and 2018.
 Retained earnings- The amount of retained earning of this company is different in three
years. Such as in year 2017, it was of $ 286 million that raised by 83.56 % and became of
$ 525 million. As well as in year 2019, it decreased by 38.28 % and became of $ 324
million. The reason of difference is that company's net income is fluctuating in these
three years
 Treasury stock- The company did not have any treasury stock in year 2017 and 2018.
While in year 2019, they had treasury stock of $ 16 million. This is so because in 2019,
company is repurchasing their shareholders' shares.
 Accumulated other comprehensive income- The company had the accumulated loss of ($
276 million) in year 2017 that decreased in next year and became of ($ 293 million). As
well as in year 2019, it again decreased and became of ($ 722 million). The reason of this
that company's unrealized losses are increasing continuously.
(iii) Explanation of items that are recorded under liabilities section.
In the liabilities section, there are majorly two kinds of items are included which are
current and non current liabilities.
Amcor plc:
Liabilities- There are mainly two kinds of liabilities which are as follows:
1. Current liabilities: Under it following types of items are includes such as-
 Short term debts- These are kind of debt which are being taken by companies for short
time period, generally for less then one year (Schaltegger, Burritt and Petersen, 2017).
 Capital leases- It can be defined as a kind of lease agreement in that lessor transfer the
ownership to the lessee after the end of lease period.
 Accounts payable- It can be defined as an amount that is owed by an organisation to their
suppliers and this is presented in balance sheet as a liability.
 Deferred income tax- It can be defined as a kind of tax which an organisation will pay on
the taxable income but that is not due for payment (Wang and Sarkis, 2017).
 Accrued liabilities- These are the liabilities which reflect the expenditures which have not
been paid in the accounting time period.

 Other current liabilities- Apart from the above liabilities, rest of current liabilities are
included in it. These liabilities are not allocated to common liabilities.
2. Non current liabilities-
 Long term debts- These are kind of debts which are taken by companies from financial
institutions for long time period (more than one year).
 Deferred taxes liability- This can be defined as a kind of tax that is due in current time
period but not been paid.
 Pension and other benefits- The pension and benefits can be defined as a type of plan in
that an organisation promises to employees to pay a particular pension payment as per
their earning record, time period of service, monthly income etc.
 Minority interest- It may be defined as value or portion of share which is not owned by
parent company (Narayanaswamy, 2017).
 Other long term liability- Apart from above non current liabilities, rest of liabilities are
included under long term liabilities.
Dexus limited:
In this company's liabilities section, similar items are included as above company. For
example short term debts, long term debts, payables and other liabilities.
(iv) Explanation of the movement in each item recorded under liabilities section.
Herein, below variation in the each item of liabilities section is mentioned that is as
follows:
Amcor plc-
1. Current liabilities:
 Short term debts- The company's short term debts were of $ 1120 million in year 2018
that raised in next year and became of $ 1809 million. It is so because, company has
taken more short term loans in year 2018. While in year 2019, the amount of short term
loan has been decreased and became of $ 794 million.

 Capital lease- The amount of capital lease was of $ 3 and 2 million in year 2017 and
2018. On the other hand, company did not have capital lease in year 2019. The reason
behind this is that company is not taking assets on lease.
 Accounts payable- The company had accounts payable of $ 2576 million in year 2017
that increased by $ 15 million and became of $ 2591 million in next year. While in year
2019, the amount of A/c payable decreased. This is so because the company is not
making purchase on credit in year 2019 as compare to rest of years.
 Deferred income tax- The total payable income tax was of $ 94 million in year 2017 that
increased and became of $ 139 million. In year 2019, the company did not have any
payable income tax. This is so because in year 2019, the company may not have earned
any income on which tax is payable.
 Accrued liabilities- The company did not have any amount of accrued liability in year
2017 and 2019 but they had in year 2019 of $ 378 million.
 Other current liabilities- In this, the company had other current liabilities of $ 215 million
which decreased in next year and became of $ 127 million. Though in year 2019, the
amount of these liabilities was of $ 1066. This so because of company's different short
term operations and activities.
2. Non current liabilities:
 Long term debt- The amount of long term debt is different in all three years. Such as in
year 2017, it was of $ 3477 million that decreased in next year and became of $ 2651
million. While in year 2019, it increased and became of $ 5309 million. The reason of
this difference is due to company's higher expenditures for which they had taken loan.
 Capital lease- The amount of capital lease was of $ 6 and $ 4 million in year 2017 and
2018. In year 2019, they did not have any amount of capital lease. This is so because of
no lease agreement in last year.
 Deferred tax liabilities- In year 2017, the tax liabilities were of $ 215 million that
decreased and became of $ 162 million in year 2018. While in year 2019, the liabilities
were of $ 1012 that is higher then previous year. The reason of this difference is that
company's liabilities are due in year 2019.

 Pension and other benefits- This liability's amount was of $ 355 million in year 2017
which decreased and became of $ 290 million. On the other hand, company did not have
any liability in year 2019.
 Minority interest- Its amount was of $ 70 million in 2017 that decreased by $ 2 million in
year 2018 as well as in 2019. This is so because company may have less amount of shares
that are not owned by parent company.
 Other long term liabilities- Apart from above liabilities, the amount of other current
liabilities was of $ 122 million which increased in further years. In year 2019, it was of $
628 million. This is so because company may have taken more loans in year 2019.
Dexus limited:
 Short term borrowings- The amount of short term borrowings was of $ 149 million which
increased and became of $ 205 million and in year 2019, this decreased till $ 70 million.
The difference's reason is that company did not take any huge amount of short term loan
in year 2019.
 Long term debts- The company had long term debts of $ 2698 in year 2018 that increased
in next two years and in year 2019, it was of $ 3997 million. It is so because the company
might be depending on long term loan in year 2018 and 2019.
 Other liabilities- The other liabilities were of $ 195 million in year 2017 that raised in
next year and became of $ 215 million. As well as in next year 2019, it again increased
and became of $ 270 million. The reason of this difference may be various kind of
activities of companies.
(v) Advantages or disadvantages of each sources of fund each of selected companies.
In Amcor plc company: This company is using various kind of source of fund that are as
follows:
1. Long term loan- This is a kind of source of fund that is taken by companies for long time
period.
 Advantage- Its benefit is that companies have option to pay the amount in instalments. As
well as organisations can get huge amount of fund (Tschopp and Huefner, 2015).
 Disadvantage- One of the disadvantage of this source of fund is the higher interest rate.

2. Equity share- It is a kind of source of fund in which companies issue share in public to get
long term fund.
 Advantage- The benefit of this source of finance is that by it, companies do not have any
obligation for payment of dividend.
 Disadvantage- The shareholders can interrupt in company's operations and management
because they have voting rights.
3. Retained earnings- This also acts as a source of finance which have following advantage and
disadvantage:
 Advantage- It is one of the cheapest source of finance because this does not include
acquisition cost.
 Disadvantage- Ineffective utilisation of fund is biggest drawback of this source of fund.
In Dexus limited company:
1. Short term loan- This is a kind of loan which is taken by companies for short time period.
 Advantage- It can be taken at the lower interest which is an advantage.
 Disadvantage- The process of getting this loan is quite difficult that is a disadvantage
(Epstein, Buhovac and Yuthas, 2015).
Apart from it, this company is also using similar source of fund as above company such as
retained earnings, equity.
PART (B)
Concept of small, large proprietary company and reporting entity.
1. Small proprietary company- This can be defined as a kind of company which have
following features:
 A company which have amount of assets less then $ 12.5 million in the end of year.
 If there are less then 50 employees in the end of year.

 A company whose gross operating revenue is less then $ 25 million during the financial
year (Morris, 2018).
If any company has minimum two mentioned features then it is called as small proprietary
company.
Compliance and reporting requirement- In the small proprietary companies, there is no need of
hiring the auditor for evaluation of financial statements. As well as to preparation and
presentation of financial statements to stakeholders. This is so because these companies are being
controlled by foreign companies in which parent company keeps consolidated financial
statements.
2. Large proprietary company- It may be defined as a kind of company which satisfies below
mentioned conditions:
 If any company has gross assets more then $ 12.5 million.
 A company in which minimum number of employees should be 50 and no limit of
maximum number of employees.
Compliance and reporting requirement- In this company, it is important to prepare and lodge the
audited financial statements. This company, follows the compliances of Australian securities and
investment commission (Du Plessis, Casper, 2017). It is so because in these companies, there
are a lot of shareholders who show their interest in the financial position for making decision
related to investment. In addition, for large proprietary companies this is necessary to conduct
auditing of their financial statements.
3. Reporting entity- It can be defined as a kind of entity in which users relay on the financial
reports to assess financial position and performance (Reverte, 2016). As well as to take decisions
on the basis of financial information provided by financial reports. The users can be
shareholders, investors, creditors etc.
Compliance and reporting requirement- This kind of entity has compliance with all AASB
(Australian accounting standard board) as well as with reduced disclosure regime standards.

Apart from it, this is essential for company to conduct auditing of their financial statements and
for presentation of financial statements to different stakeholders (Mio, 2016).
So among these three companies, small proprietary company is a kind of company in which it is
not necessary to conduct auditing of financial statements. As well as this company does not
follow any specific accounting standard.
CONCLUSION
On the basis of above project report, it has been concluded that company's financial
statements consist detailed information about various aspects. Under the report, items included in
owner's equity section such as common stock, other equity etc. are concluded. As well as items
in liabilities section like short-long term borrowing, long term debts etc. are included. The
further part of project report concludes about movement in the each item that is recorded in
equity and liability section. In addition, the report concludes about various source of fund of both
selected companies and concept of small, large and reporting entities.

REFERENCES
Books and journals:
Watson, L., 2015. Corporate social responsibility research in accounting. Journal of Accounting
Literature. 34. pp.1-16.
Crowther, D., 2018. A Social Critique of Corporate Reporting: A Semiotic Analysis of Corporate
Financial and Environmental Reporting: A Semiotic Analysis of Corporate Financial
and Environmental Reporting. Routledge.
Maas, K., Schaltegger, S. and Crutzen, N., 2016. Integrating corporate sustainability assessment,
management accounting, control, and reporting. Journal of Cleaner Production. 136.
pp.237-248.
Schaltegger, S., Burritt, R. and Petersen, H., 2017. An introduction to corporate environmental
management: Striving for sustainability. Routledge.
Wang, Z. and Sarkis, J., 2017. Corporate social responsibility governance, outcomes, and
financial performance. Journal of Cleaner Production. 162. pp.1607-1616.
Narayanaswamy, R., 2017. Financial accounting: a managerial perspective. PHI Learning Pvt.
Ltd..
Tschopp, D. and Huefner, R .J., 2015. Comparing the evolution of CSR reporting to that of
financial reporting. Journal of Business Ethics. 127(3). pp.565-577.
Epstein, M. J., Buhovac, A. R. and Yuthas, K., 2015. Managing social, environmental and
financial performance simultaneously. Long range planning. 48(1). pp.35-45.
Morris, R., 2018. Early Warning Indicators of Corporate Failure: A critical review of previous
research and further empirical evidence. Routledge.
Du Plessis, J. J., Großfeld, B., Luttermann, C., Saenger, I., Sandrock, O. and Casper, M.,
2017. German corporate governance in international and European context. Springer.
Mio, C. ed., 2016. Integrated reporting: A new accounting disclosure. Springer.
Reverte, C., 2016. Corporate social responsibility disclosure and market valuation: evidence
from Spanish listed firms. Review of Managerial Science. 10(2). pp.411-435.

APPENDICES
Balance sheet of Amor plc:
AMCOR PLC (AMC) BALANCE SHEET
Fiscal year ends in June. USD in millions except per share data. 2017-06 2018-06 2019-06
Assets
Current assets
Cash
Cash and cash equivalents 561 617 602
Total cash 561 617 602
Receivables 1115 1029 1864
Inventories 1304 1351 1954
Prepaid expenses 77 77 374
Other current assets 226 192 416
Total current assets 3283 3266 5210
Non-current assets
Property, plant and equipment
Gross property, plant and equipment 5705 5665 7104
Accumulated Depreciation -2943 -2983 -3129
Net property, plant and equipment 2763 2682 3975
Equity and other investments 411 436 99
Goodwill 2031 2024 5156
Intangible assets 376 349 2307
Deferred income taxes 67 65 191
Prepaid pension benefit 24 50 40
Other long-term assets 119 119 187
Total non-current assets 5791 5726 11955
Total assets 9074 8992 17165
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 1120 1809 794
Capital leases 3 2
Accounts payable 2576 2591 2303
Deferred income taxes 94 139
Accrued liabilities 378
Other current liabilities 215 127 1066
Total current liabilities 4008 4668 4542
Non-current liabilities
Long-term debt 3477 2651 5309
Capital leases 6 4
Deferred taxes liabilities 215 162 1012
Pensions and other benefits 355 290
Minority interest 70 68 66
Other long-term liabilities 122 133 628
Total non-current liabilities 4245 3308 7014
Total liabilities 8253 7976 11556
Stockholders' equity
Common stock 1416 1392 16
Other Equity -605 -608
Additional paid-in capital 6008
Retained earnings 286 525 324
Treasury stock -16
Accumulated other comprehensive income -276 -293 -722
Total stockholders' equity 821 1015 5609
Balance sheet of Dexus limited:

DEXUS (DXS) BALANCE SHEET
Fiscal year ends in June. AUD in millions except per share data. 2017-06 2018-06 2019-06
Assets
Real estate properties 16 16 15
Real estate properties, net 16 16 15
Cash and cash equivalents 21 33 30
Receivables 82 63 148
Intangible assets 310 315 322
Other assets 11841 13590 16007
Total assets 12270 14017 16521
Liabilities and stockholders' equity
Liabilities
Short-term borrowing 149 205 70
Long-term debt 2698 3154 3997
Payables and accrued expenses 404 395 441
Other liabilities 195 215 270
Total liabilities 3446 3970 4778
Stockholders' equity
Common stock 6402 6404 7354
Other Equity 6 -16 16
Retained earnings 2373 3616 4336
Accumulated other comprehensive income 43 43 38
Total stockholders' equity 8824 10047 11743
Total liabilities and stockholders' equity 12270 14017 16521