Comparative Analysis of Debt-Equity Position of Four Public Companies

corporate and financial accounting

CORPORATE AND FINANCIAL ACCOUNTING: 1
Executive summary
The report brings out the comparison between the four public companies especially related to
debt and equity. The four public companies are BHP Billiton Ltd, Telstra, Suncorp group
limited, and AGL energy limited. Moreover, the each subheading of equity and shareholders
is being evaluated by making a comparison table of four consecutive years.

CORPORATE AND FINANCIAL ACCOUNTING: 2
Contents
Answer to question 1-................................................................................................................2
Answer to Q.2)...........................................................................................................................3
Owner`s fund..............................................................................................................................4
Ordinary Share Capital...............................................................................................................7
Reserves.....................................................................................................................................8
Retain earnings...........................................................................................................................8
Comparative analysis of debt-equity position of the four firms that are selected......................9
References................................................................................................................................11

CORPORATE AND FINANCIAL ACCOUNTING: 3
Answer to question 1-
Declaration of Financial information of any company have significance in the corporate
world over the last few years because of increased complex business operations. Fair
financial statement of the company is the way to communicate to the stakeholders and
convince the shareholders to invest in their company. A manager should take step forward to
share the financial statements voluntarily to its stakeholders especially external stakeholders.
Disclosure of Annual report to the public would help the company to build trust and
confidence among the shareholders. The external stakeholders would use the information
provided in the annual reports to make the rational decisions. Legal regulations have enforced
the companies to act on the behalf of creditors, employees, and shareholders to derive the
relevant information that governs the financial reporting (Alhazaimeh, Palaniappan, and
Almsafir, 2014).
After 1990, Accounting Standards Board has made necessary the implementation of Financial
Reporting Standards. In case the manager do not access information regarding organisation`s
working, he will not able to publish information of financial statements. The disclosure
requirements reduce the tendency of the companies to commit unethical deeds. Disclosure
would asymmetry the information between the director and the other external user groups.
The availability of financial statements to the users enables the external users to compare the
actual performance of the company. The act not only requires the managed to represent
financial statements to the stakeholders every year. However, it also requires the team of
independent auditors to revise, examine, and check whether the reporting of financial
statements presented to the stakeholders are accurate or not (Alhazaimeh, Palaniappan, and
Almsafir, 2014).