Corporate and Financial Accountings Report 2022

RUNNING HEAD: CORPORATE AND FINANCIAL ACCOUNTING
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Corporate and Financial Accounting
Report
System 0032
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Corporate and Financial Accounting
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Abstract
This report consists of the ways Wesfarmers and Woolworths raise funds in order to meet their long
term goals and to sustain in the market. Further sections of report highlights the owners’ equity section
of both the companies and movement in this sections for three consecutive years starting from 2016.
The total liabilities sections of both the companies are also analyzed and all the items in these sections of
balance sheet are explained. The e movements in the liabilities section of companies with the reasons
are provided for three years. Further in next part the concept of small and large proprietary company is
explained with the terms of compliance and reporting requirement.

Corporate and Financial Accounting
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Table of Contents
Introduction.................................................................................................................... 3
Assignments................................................................................................................... 3
Part A........................................................................................................................ 3
Part B...................................................................................................................... 10
Conclusion................................................................................................................... 11
References................................................................................................................... 14

Corporate and Financial Accounting
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Introduction
Corporate financing is the area that is concerned with the capital structure of the companies, sources of
funds, tools used to allocate financial resources and the actions that management takes for wealth
maximization. Corporate and financial accounting describes the two main areas in finance that are
capital budgeting and working capital management (Warren and Jones, 2018). Capital budgeting include
a part that states about whether company should finance investment with debt capital or equity that
means which source of raising fund prove to be beneficial . The concept of corporate finance is mainly
related to the transactions by which the companies raise capital in order to develop, create, acquire and
grow their businesses (Shi, 2015).
The aim of this report is to know the sources that company use in order to raise funds. To understand
this concept of raising funds two companies has been chosen that are Woolworths and Wesfarmers both
are ASX listed companies. To know the movement of funds and sources of funds to raise capital in these
companies’ data for 3 years from 2015 to 2018 is analyzed and on the basis of that all the questions of
the assessment are answered in below sections. Further, analysis on the concepts of large proprietary
company, reporting entities and small proprietary company is done and implications of these types are
identified as per the “terms of compliance and reporting requirements”.
Assignments
Part A
i. Owner’s equity is the section in balance sheet which represents the investment of owners in the
business and all the transactions that are done by the owner. The company’s balance sheet
discloses the liabilities, assets and owners’ equity. Owners’ equity in the company is the
shareholders fund or the amount raise through the issue of shares to public (Datta and Fuad,
2017). The broad classification of owners fund is that it includes common stock, retained
earnings and unrealized gain.