HI5020 Corporate Accounting: Analysis of Blue Scope Steel Limited's Financial Statements

HI5020 Corporate Accounting
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Introduction:
The financial report relating to corporate accounting has been prepared to develop the knowledge
of users regarding various concepts and fundamentals related to accounting work conducted in
the business. The report will include the analysis of cash flow statement of company and the
items relating to operating, investing and financing activities of company will be differentiated in
this report. The comprehensive income statement of the company will be discussed in this report
and various interpretations will be made according to the types of items reported in this
assignment. The report will involve accounting for income taxes which ill involve recognising
the income tax expense for the company and identifying the reconciliation provided in this
behalf. The report will also include an explanation about the deferred tax assets and liabilities
reported in the annual report of company and the interest or confusing facts recognized will be
described appropriately in this report.
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Contents
Introduction:....................................................................................................................................2
CASH FLOWS STATEMENT...................................................................................................4
OTHER COMPREHENSIVE INCOME STATEMENT............................................................8
ACCOUNTING FOR CORPORATE INCOME TAX...............................................................9
Conclusion:....................................................................................................................................12
References:....................................................................................................................................13
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CASH FLOWS STATEMENT
The various items reported in the cash flow statement of the company for the year ending 2017
has been presented below:
Receipts form customers – The revenues received form the customer represents the amount
which have been obtained in consideration of the goods and services given to the customers of
company.
Payment to suppliers and employees – The payment made to suppliers and employees of the
company is concerned with the amounts which have been paid by the company to the suppliers
for their purchases and the payment made for labour to the employees (Blue Scope Steel
Limited, 2017).
Finance cost paid – The finance cost paid refers to the amount of interest paid by the company
towards the amount of credit received in ordinary business operations.
Income taxes paid – The income taxes represents the amount of current tax liability paid by the
company during the year and includes the past taxes as well as present taxes.
Payments made for purchases of subsidiaries and business asserts – This is the type of
investing activity of the company which includes the amount paid for acquiring the joint ventures
or associate and the business assets of company during the year.
Payments made for property, plant and equipment and intangible assets – The cash outflow
can be in the form of amount to be paid by the company for acquisition of property, plant and
equipment for the company along with the intangible assets.
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