Corporate and Financial Accounting Assignment 2022

Corporate and
Financial
Accounting

FINANCE 1
Introduction
The paper is divided into two parts such as Part A and Part B. In Part A, the discussion is made
on the owner’s equity and liabilities. In Part B, the three concepts of entities will be discussed
such as sole proprietary, large proprietary and report proprietary.
Part A
1. There are different items have been recorded under the heading of Equity in the balance sheet
such as retained earnings, reserves, ordinary share capital, and non-controlling interests. These
items have different meaning and concepts that have been used by the company to operate the
business effectively. Retained earnings define the amount of profit that the company kept aside
by subtracting dividends or the other distribution payments of investors. The word reserves
define the balance that an organization kept aside for the particular reason for the future benefits.
Ordinary Share Capital is the amount of capital which is raises by the different sources such as
public and private sources by issuing the common shares (Hugonnier, and Morellec, 2017).
2. Owners’ Equity of Both the Banks
ANZ Bank
2017-2018
2016

FINANCE 2
The total amount of shareholders equity of ANZ Bank is increasing with the minor percentage
from 2016 to the year 2018. The items contained under the owners’ equity are also fluctuated in
the year 2018 from the previous years 2016 and 2017. The amount of ordinary share capital is
decreasing in the year 2018 from the year 2016. In the year 2016, the amount of share capital is
28765 which are decreasing in the year 2018 by 27205. It has been found that the amount of
ordinary share capital is increasing in 2017 but due to limited funds or shares, it is decreases in
the year 2018 (ANZ, 2018). The amount of reserves reflects that the market rate of loan is
increasing due to which the company is not able to maintain the reserves with the high amount.
As per the analysis, it is observed that the amount of reserves is also declined in the year 2018.
As the passage of time or the years, the amount of reserves of the company is decreasing. In
2018, the amount of retained earnings is increasing which is a positive indication for the firm as
it is earned amount (Geddes, 2017). The overall picture of equity is that the amount of
shareholder equity is increasing.
Common Wealth Bank
2017-2018

FINANCE 3
2016
As per the analysis of owners’ equity of Common Wealth Bank, it is observed that the amount of
equity is increasing which reflects that the company raises the capital through shareholders
instead of borrowing money from outsiders. It has been found that the amount of total equity is
60756 in the year 2016 but in the year 2017 and 2018 it is increasing such as 63600 and 67860
respectively (Commonbank, 2017). The amount of ordinary share capital is increasing in the year
2016 and 2017 which states that the company has enough funds that helps to issues the shares to
to raises the capital. The overall amount of equity is increasing from 2016 to 2018 which is
beneficial for the company and also beneficial for the long term survival in the market.
3. The heading of liability defines the company payments that the organization has to pay in the
coming future. Under this heading, there are a lot of items are contained as per the business of
the organization such as derivative liabilities, payables, bank acceptances, bills payable, debt
issues, deferred tax liabilities, insurance policy liabilities, current tax liabilities, deposits and
other public, and the others. Deferred tax liabilities is the income tax expenses which the