Corporate Business Accounting Report

Running head: CORPORATE ACCOUNTING
Corporate Accounting
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CORPORATE ACCOUNTING
Executive Summary:
The main purpose of the analysis is conduct a review on the reporting process which
is followed by the business of Rio Tinto Ltd and BHP Billiton Ltd. The reporting
process highlights the capital structure which is used by both the companies for
financing the operations of the business. The assessment also shows the changes
which has taken place in the capital structure of the business and how the same is
related to the risks of the business. The analysis also shows assets and liabilities of
the business considering the reported items which are presented in the financial
statements of the business. The analysis also shows whether the business utilizes
AASB 137 in the reporting of contingent assets and liabilities of the business.

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CORPORATE ACCOUNTING
Table of Contents
Introduction:..................................................................................................................4
DISCUSSION:..............................................................................................................4
Rio Tinto:.......................................................................................................................4
Portfolio:....................................................................................................................4
Financial Performance:.............................................................................................4
(i) Different sources of fund:.......................................................................................4
(ii) Evolution of Sources of Fund:............................................................................5
Share Capital:...........................................................................................................5
Merits:........................................................................................................................5
Shortcomings:...........................................................................................................5
Reserves:..................................................................................................................5
Merits:........................................................................................................................5
Shortcomings:...........................................................................................................5
Retained Earnings:....................................................................................................5
Merits:........................................................................................................................5
Demerits:...................................................................................................................5
(iii) Brief About Different Types of Liabilities:...........................................................6
Current Liabilities:.....................................................................................................6
Non-Current Liabilities:.............................................................................................6
Borrowings and other financial liabilities:..................................................................6
Trade and other payables:........................................................................................6
Tax payable:..............................................................................................................6
Deferred tax liabilities:...............................................................................................6
Provisions including post-retirement benefit:............................................................6
(iv) Key Provisions Under AASB 137 ‘Provisions, Contingent Liabilities and
Contingent Assets’........................................................................................................7
(v) Different Types of Assets shown in the Balance Sheet:....................................7
(vi) Basis of measurement to evaluate each asset:..................................................7
BHP Billiton...................................................................................................................8
Portfolio:....................................................................................................................8
Performance:.............................................................................................................8
(i) Different sources of fund:.......................................................................................8
(ii) Evolution of Sources of Fund:............................................................................8
Share capital Buyback programmes:........................................................................8
Reserves:..................................................................................................................9

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CORPORATE ACCOUNTING
Impact on Financial Reporting:.................................................................................9
Retained Earnings:....................................................................................................9
(iii) Merits and Demerits of the selected funds:.....................................................9
(iv) Different types of liabilities:..............................................................................9
(vi) Different types of assets:...............................................................................11
(vii) Basis of measurement of each asset:...........................................................11
Conclusion..................................................................................................................11
Reference...................................................................................................................12