Financial Accounting: Industry Description, Company Description, Financial Instrument Analysis

This document provides an overview of financial accounting, including the industry description, company description, and financial instrument analysis. It covers the size of the industry, regulators, main source of business, ownership structure, and more. The document includes a copy of the 2019 or 2020 balance sheet and income statements, as well as an evaluation of the cash or liquidity situation. It is a valuable resource for anyone studying financial accounting.

Financial accounting
1.

Contents
2. Industry Description.....................................................................................................................3
A) Size of the industry............................................................................................................3
B) Regulator/s of the industry................................................................................................3
2. Company Description.............................................................................................................4
A) Main source of business....................................................................................................4
B) Ownership structure..........................................................................................................5
3. Financial Instrument Analysis.....................................................................................................5
A) Copy of the 2019 or 2020 Balance Sheet and Income Statements....................................5
B) Financial instruments.........................................................................................................6
C) Evaluation of Cash or liquidity situation...........................................................................6
REFERENCES................................................................................................................................8
APPENDIX......................................................................................................................................9

2. Industry Description
A) Size of the industry
Metal and mining industry contains some of the most diversified commodities in the
overall world firm s, like multinational giants like BHP Billiton as well as Rio Tinto, and also a
reflection of the top - range and small miners of possible future leading companies. The business
has often relied on share prices and will provide the resources needed to grow mineral resources
in a highly profitable manner or to finance greater risk discovery to find new reserves. Since
2009, over 270 fresh small resource offerings have been funded by shareholders throughout the
Australian industry. Mining contributes approximately 5.6 % of the GDP of Australia. This
really is increasing from just 2.6 % in 1950 but reduced from more than 10 % in 1901 at the time
of the union. Mineral shipments, by comparison, represent some 35 per cent of total exports.
Australia is consider to be the world's leading exporter of carbon coal, diamonds, iron ore, rutile,
zinc, lead and zirconium (35% of foreign trade), the 2nd biggest exporter of platinum and
uranium, as well as the 3rd biggest exporter of aluminium. Since Australia's reserves are spread
through various habitats, the information obtained from the rehabilitation of one mine doesn't
extrapolate readily to other locations. An established economy in a few of the world's main
markets is a strategic choice for foreign mining resources (Huikko, 2015).
B) Regulator/s of the industry.
Australia makes a regular effort to streamline industry, politics, as well as investment
systems that combined with a long experience of environmental, social, fiscal, legal as well
as political sustainability. This makes country the wise, stable alternative for development and
investment projects in such a massive industry like Metal and mining.
Commonwealth legislation
The Administration of the Australian Commonwealth prescribes strategy for coal and gas
discovery in coastal regions of Australia. Accountability for oil and gas regulation rests with the
states of the federation.
 Offshore mining regulations (further description here)
 Offshore Petroleum Act
The Energy Committee (initially the Permanent Committee on Resources and Energy-SCER)
of the Australian government (COAG) were formed in 2011 in order to:

 Accurate petroleum exploration and production control and supervision requirements are
advancing.
 Addressing concerns impacting investment in the discovery and production of resources.
 Establish globally acceptable clean-energy solution.
 Promoting growth and efficiency in development and channels.
 Develop on the resistance of Australia to carbon dioxide-supply shocks.
2. Company Description
A) Main source of business
BHP, originally listed as BHP Billiton, seems to be the business agency of BHP company limited
as well as BHP holdings Inc (Horngren, C. T., Datar and Rajan, 2015). a dual-listed public
business headquartered in Melbourne, Victoria, Australia, which is an Anglo-Australian
international exploration, minerals and energy. BHP has mining activities in the United States,
Australia, Trinidad, the United Kingdom, and Argentina in Queensland, Northern Europe,
including South America, as well as oil operations. The enterprise has four main operating units:
 Coal Products
 Cooper
 Ore of iron
 Gasoline
The category of assets for Minerals Australia comprises managed resources in Western
Australia, Melbourne, NSW and Brisbane. The reserves are targeted to iron, coal and iron, steel
and silver. The resources group of Resources Americas comprises ventures, assets run and assets
not controlled in Ontario, Chile, Peru, Mexico, the USA and Colombia. Company base their
investments and ventures on copper, iron ore, zinc, steel and petroleum and Petroleum
component consists of traditional oil and gas production as well as conducting experiment
throughout the United States, Tobago, Trinidad and Australia for exploration, growth ,
manufacturing and sales. Western Australia Iron Ore (WAIO) is also an interconnected grid
comprising four processing centres including 5 mines, linked in the Pilbara Mountains of north
WA by upwards of 1,000 km of railway network and oil refineries. For each processing hub –
Newman, Yandi, Processing Area C as well as Jimblebar mining rock is crushed, enriched (if
necessary) as well as combined to produce high-grade chunk maghemite and fines goods.

Maritime and Supply Chain Innovation handles BHP's enterprise-wide logistics policy and
freight forwarding ferrying to fulfil the inbound or outbound transportation needs of BHP. They
strive to maintain robust safety practises across BHP's maritime production process, moving the
industry into a more stable and healthy global environment. The program focused on innovation
in the production process and the availability of maritime freight protection at the least potential
expense (Pollard, 2018). BMA is Australia's leading manufacturer of coal and provider of
petrochemical seaborne gas. BMA is operated by Mitsubishi Production and BHP 50:50. BMA
runs seven Ewing Basin mining and maintains and runs the Hay Point Coal Terminals nearby
Mackay. Throughout the Bowen Basin, BMC owns and runs two large-cut machining coal
mines-South Walker Creek Mine as well as Petrel Mine. BMC is operated (80 per cent) by BHP
but also (20 per cent) by Mitsubishi and Co.
B) Ownership structure
BHP have a clear and comprehensive category one investment portfolios. Long live, low
price and extensible, these include. They apply their principles and philosophy to gain the
greatest benefit and the best returns through financial properties, run them in a secure and
efficient manner and implement technologies.
For owners, this has succeeded. As of 2016, BHP has:
 Reinforced our balance sheet by a net reducing debt of US$ 17 billion;
 $27 billion invested back in growth options;
 Crucially, the owners were returning upwards of US$ 29 billion.
Future performance relies not just on the dedication to the investment of resources, as well as on
their social responsibility, which would be their dedication to the persons, the society and their
societies. It changes the way they deliver services, keeps the workplace safe as well as enables
financial success. During the financial quarter December 2018, fund managers bought a net $6.1
million of BHP stock but now hold 5.00 % of the overall common shares. This is a larger ratio
than usual for Other Metals / Minerals firms and demonstrates that the wise money regards this
inventory as a significant asset (Cooper, 2017).
3. Financial Instrument Analysis
A) Copy of the 2019 or 2020 Balance Sheet and Income Statements.
(Attached in the appendix)

B) Financial instruments.
From the annual report, of BHP Billiton it has been discovered that company is one of the
largest leading metal and mineral company in entire world. During the financial quarter
December 2018, fund managers bought a net $6.1 millions of BHP stock but now hold 5.00
percent of the overall common shares. This is a larger ratio than usual for Other Metals /
Minerals firms and demonstrates that the wise money regards this inventory as a significant
asset. As liquidity costs and transactions tend to be identified in resources, the exchange rate
base has been independently assessed, with US$ 176 million officially classified from of the
working capital risk management reserve through the transfer hedging reserve expense. The
transitional hedging assets will have to be passed over the existence of the corresponding notes
and preferred stock to the revenue statement. Furthermore, assets owned by the BHP Billiton
Base are limited and not eligible for common use during the category to US$ 309 million (2018:
US$ 343 million) in which assets (US Treasury Notes) to US$ 128 million were listed as grade 1
(2018: US$ 108 million).
Other contributions of US$ 47 million (2018: US$ 47 million) listed as Category 3 are also
discovered (Maliki and Rukmana, 2020). In comparison, it includes US$ 367 million in product
taxes (2018: US$ 338 million) contained in other accounts receivable. The other accounts
receivable and removes import taxes specified in other accounts payable of US$ 162 million
(2018: US$ 189 million). In the revised accounting principles and interpretations' for IAS 39
classifications. Both financial assets as well as accrued expenses acknowledged at reasonable
valuation of the firm were priced using economy-observable inputs defined as Level 2 excluding
the items. This excludes other US$ 200 million (2018: US$ 213 million) derivatives agreements
classified as Class 3. Securities contained in physical product procurement and natural gas
agreements in Trinidad and Tobago with such a reasonable valuation of total income of US$ 202
million (2018: US$ 216 million) are important products. All exchange traded obligations are
unsecured, except financial leases.
C) Evaluation of Cash or liquidity situation
Capital and development spending is reported on a capital account which reflects land, property
and machinery expenditures plus development spending from the Integrated financial statement
under Section 5 which excludes property , plant and equipment acquisitions plus research
expenditure through Suspended activities. Land, plant and machinery investments include

capitalised unpaid shedding for FY2019 of US$ 1.022 million (FY2018: US$ 880 million) and
requires defined interest. In line with certain accounting practises, discovery investment is tried
to capitalize. BHP owners related after-tax earnings rose from earnings of US$ 3.7 billion in
FY2018 to an income of US$ 8.3 billion in FY2019. Revenue rose by US$ 1.2 billion to US$
44.3 billion, or three per cent, FY2018. This rise was mainly due to increased annual realised
values for coking coal, gas and sulphur as a consequence, machining coal including higher
production rates at WAIO from high estimate at Jimblebar as well as Wheelarra maturity date
Joint Undertaking (Triyono, Setiawan and PRATAMA, 2018).

REFERENCES
Books and Journals
Huikko, A., 2015. A job costing tool for construction company X.
Horngren, C. T., Datar, S. M. and Rajan, M. V., 2015. Cost accounting: A managerial emphasis.
Pollard, W. B., 2018. An Active Learning Approach to Teaching Job-Order
Costing. Management Accounting Quarterly, 19(4), pp.10-10.
Cooper, R., 2017. Target costing and value engineering. Routledge.
Maliki, A. and Rukmana, H. S., 2020. Calculation of Cost of Production Using the Job Order
Costing Method Against Determination of Selling Prices at PT OTO Media
Kreasi. Neraca: Jurnal Akuntansi Terapan, 1(2), pp.103-125.
Triyono, D., Setiawan, A. and PRATAMA, S. E., 2018. The Fabrication of Main Cost
Application Production with Job Order Costing Method at Tape Company in
Sidoarjo (Doctoral dissertation, Petra Christian University).

APPENDIX
Income statement
Balance sheet