Comparative Analysis of Funding Sources of Telstra Corporation and TPG Telecom Ltd

Running head: CORPORATE AND FINANCIAL ACCOUNTING
CORPORATE AND FINANCIAL ACCOUNTING
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CORPORATE AND FINANCIAL ACCOUNTING1
Executive Summery
This report is mainly prepared to comparatively analyse the source of funding used by the
two companies from the same industry of Australia. The chosen companies for this report are
the Telstra Corporation and TPG Telecom Ltd. This report analysis the annual report of both
companies for the year 2018, 2017 and 2016 to comparatively analyse the source of funding
used by both the firms. The report also analyse the concept of small proprietary company,
large property company and reporting entities. Lastly, this report discuss about the
implications of the reporting requirements of Australian Council which classifies the
companies as per their reporting requirements.

CORPORATE AND FINANCIAL ACCOUNTING2
Table of Contents
Introduction................................................................................................................................3
Part A.........................................................................................................................................3
Items recorded under owner’s equity.....................................................................................3
Movement in accounts...........................................................................................................5
Items reported under liabilities...............................................................................................6
Movement is items.................................................................................................................8
Sources of fund used by the firms..........................................................................................9
Part B........................................................................................................................................10
Concepts of companies........................................................................................................10
Implications of being classified...........................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

CORPORATE AND FINANCIAL ACCOUNTING3
Introduction
This report is prepared to perform a comparative analysis of sources of fund used by
two companies those are Telstra Corporation and TPG Telecom Ltd. Telstra Corporation is a
leading telecommunication and technology firm of Australia. Firm offers range of
communication services by operation in all telecommunication markets. In Australia, Telstra
Corporation provides more than 18 million mobile retail services including 3.7 million retail
fixed bundles and standalone data services as well as 1.4 million fixed retail standalone voice
services. While, the second company named TPG Telecom Ltd. is also an Australia based
telecommunication and information technology firm. The main business of the firm is
provide the internet services to the customers which includes both individuals and business.
Firm is also involved in the mobile services and telephone services. It is Australia’s second
largest internet provider as well as Australia’s largest virtual network operator. This report
mainly have two parts. The first part of the report comparatively analyse the source of
funding of both the above mentioned companies. In this part, report analysis the owner’s
equity and liabilities of the firms as well as the sources of fund used by the both companies.
While, the second part of the report critically examine the concepts of different companies
and analyse the compliance and reporting requirements.
Part A
Items recorded under owner’s equity
Both the companies have the same items in their owner’s equity section. Those items
are: -
Share Capital
The share capital of the firm represents the part of the total capital that is raised by the
firm by issuing the shares. The amount of the share capital that the firm has can change over