HI5020 Corporate Accounting: Analysis of Energy Australia Limited's Financial Statements

HI5020 Corporate Accounting
1

Contents
Introduction:...................................................................................................................... 4
Assessment item 2 — Assignment........................................................................................5
1. CASH FLOWS STATEMENT......................................................................................5
(i) From your firm’s financial statement, lists each item reported in the CASH FLOWS
STATEMENT and write your understanding of each item. Discuss any changes in each item of
CASH FLOWS STATEMENT for your firm over the past year articulating the reasons for the
change........................................................................................................................... 5
(ii) Provide a comparative analysis of your company’s three broad categories of cash flows
(operating activities, investing activities, financing activities) and make a comparative
evaluation for three years.................................................................................................6
OTHER COMPREHENSIVE INCOME STATEMENT..........................................................7
(iii) What items have been reported in the other comprehensive income statement.................7
(iv). Explain your understanding of each item reported in the other comprehensive income
statement........................................................................................................................7
(v) Why these items have not been reported in Income Statement/Profit and Loss Statement. .8
ACCOUNTING FOR CORPORATE INCOME TAX.............................................................9
(vi) What is your firm’s tax expense in its latest financial statements?..................................9
(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 are reported on the balance sheet
articulating the possible reasons why they have been recorded.............................................9
2

(ix) Is there any current tax assets or income tax payable recorded by your company? Why is
the income tax payable not the same as income tax expense?.............................................10
The current tax assets are those assets are those assets which are actually payable and recorded
when the deferred taxes are to be legally enforceable and rightly set off with the current tax
assets against current tax liabilities of the company. As per lack of provision related to income
tax under income tax assessment act 1997, so the company has not recorded current tax assets
and liabilities in their financial statement as income tax payable (NCERT, 2014).................10
(x) Is the income tax expense shown in the income statement same as the income tax paid
shown in the cash flow statement? If not why is the difference?.........................................10
(xi)What do you find interesting, confusing, surprising or difficult to understand about the
treatment of tax in your firm’s financial statements? What new insights, if any, have you
gained about how companies account for income tax as a result of examining your firm’s tax
expense in its accounts?.................................................................................................10
Conclusion:...................................................................................................................... 11
References:....................................................................................................................12
3

Introduction:
This report will explain about corporate accounting and its management in the context of Energy
India Limited. This report will describe management returns with the changes into cash flow
behaviour and it's operating and financial activities. It will elaborate and analyse the accuracy of
the comprehensive income statement and different between other comprehensive and original
income statement. In the further explanation, this report will describe Energy Australia Limited
and significance of corporate income tax and its accounting procedure.
4