H15020 Corporate Accounting: Analyzing Boral Limited's Financial Statements

H15020 Corporate Accounting
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Contents
Cash Flow Statement..................................................................................................................3
(i)................................................................................................................................................3
ii)................................................................................................................................................4
Other Comprehensive Income Statement...................................................................................5
iii)...............................................................................................................................................5
iv)...............................................................................................................................................6
V)................................................................................................................................................7
Accounting For Corporate Income Tax;..................................................................................8
(vi)..............................................................................................................................................8
Vii) Is this figure the same as the company tax rate times your firm’s accounting income?
Explain why this is, or is not, the case for your firm.................................................................9
viii) Comment on deferred tax assets/liabilities that is reported in the balance sheet
articulating the possible reasons why they have been recorded...............................................10
ix).............................................................................................................................................11
X)..............................................................................................................................................12
(xi)............................................................................................................................................13
References:...............................................................................................................................14
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Cash Flow Statement
(i)
Boral Limited is an Australian listed company which is engaged in the business of
manufacturing and supplying of building materials.
Explanation of each item of cash flow and the changes made therein it from the annual
report of Boral Limited.
Cash flow from operating activities:
Receipts from customers: receipts of raw materials, generators etc.
Payment to suppliers/ employees: wages, salary, direct expenses.
Income Tax paid; manufacturing tax, levy of duties, penalties.
Merger/Acquisition cost paid: acquiring cost, cost paid to creditors.
Cash flow from investing activities:
Purchase of property/ land: outflow of cash for purchase of fixed assets.
Purchase of intangibles: purchase of patent and copyrights.
Purchase of entities and business: cash outflow for acquisition of controlled units.
Cash Flow from financing activities:
It includes all proceeds from borrowing, capital raising cost, dividends paid to investors etc.
Net change in cash and cash equivalents: it includes increase or decrease in beginning of
year.
Net change in end of the year: net cash at the end.
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ii)
A brief comparison is drawn for the three years 2015, 2016 and 2017 of Boral Limited as;
Operating activities:
The net cash flow from operating activities for the three respective years 2015, 2016, 2017
are 418, 477.5, 413.3. The difference in 2015-16 is -59.5 increase in cash flow from receipts
from customers and other interest and dividends received. In 2016-2017 the difference is
+64.2 cash outflow because of borrowing cost, income tax paid.
Investing activities:
The net cash flow from investing activities is as follows for the three years as (55.7), (259.5),
( 3731.3). Differences in 2015-16 are -315.2. Cash inflow through repayments of investors,
proceeds from sale non- current assets etc. 2016-17 -3990.8 cash inflow through the disposal
of controlled entities etc.
Financing activities:
The net cash flow from financing activities for the three years are as follows (251.6), (273.4),
3107.0. The differences in 2015-16 are -525 cash inflow from proceeds from borrowing other
receivable of income as market share. In 2016-17 -3380.4 inflow of cash through the
financing activities.
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