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

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.