HI5020 Corporate Accounting: Analyzing CIMIC Group Limited's Financial Statements

HI5020 Corporate Accounting
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Introduction:
The corporate accounting report is associated with identifying and obtaining knowledge about
various concepts of corporate accounting to be applied in the company financial accounts. The
application of various corporate accounting principles and practices will help the company in
evaluating and analysing the financial performance and position in respect of industry and
market factors. For the purpose of preparing this re[port the organization chosen is CIMIC Group
Limited which is engaged in providing services related to international construction contracting
with operations extending to Australia, New Zealand, Asia and others. The report will include a
comparative analysis of the cash flow position of company and the income statements while
recognizing the various items of comprehensive income statement of the company. The other
part of the report will be concerned with identifying the tax expense of company and obtaining
the knowledge about deferred tax assets and liabilities of company. This will help in
understanding the financial position of company.
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CASH FLOWS STATEMENT
The various items along with their reasons for changes during the last financial year are
presented below:
Cash receipts and payments in the course of operations – The inflows and outflows
concerned with these types of operation are associated with obtaining revenues from the ordinary
business operations of company. The same ill also include the portion of GST in the payment
paid or received. The same has increased significantly for the company which ahs resulted in
increase in cash flow form operating activities (CIMIC Group Limited).
Other operating activities – The other operating activities of the company includes dividend
and interest received by the company in relation to operation al activities and finance cosy and
incomes taxes paid by the company for the period concerned. The same ahs also increased
significantly for the company.
Proceeds and payments related to properly, plant and equipment and other intangible
assets and investments of company – The payments related to intangibles and property, plant
an equipment are related to amount paid in relation to acquisition of these types of assets. The
other items related to these types of activities have increased during the year and the net cash
from investing activities have resulted in cash outlay of $432.8 million in the year 2017.
Proceeds and repayments related to borrowings – The proceeds and repayments related to
financing activities of the company includes the amount of instatements and interest paid for
the borrowings made by the company during the year. Also this will include an amount received
due to acquisition of these types of borrowings by the company. The cash received in respect of
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financing activities have increased significantly in the concerned year and therefore the cash
outlay ahs decreased significantly in the current year 2017 (CIMIC Group Limited).
2. 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.
The comparative analysis is provided below:
Comparative cash flow statement
Particulars 2017
$(m)
%
increase
/decreas
e
2016
$(m)
%
increase
/decreas
e
2015
$(m)
Cash flows from operating activities
Cash receipts in the course of operations
(including GST)
14,0
89.9
0
14 12,4
02.7
0
-22 15,9
81.0
0
Cash payments in the course of operations
(including GST)
-
12,5
66.5
0
12 -
11,2
01.3
0
-20 -
14,0
61.4
0
Cash flows from operating activities 1,52
3.40
27 1,20
1.40
-37 1,91
9.60
Dividends received -100 6.9 -56 15.7
Interest received 26 4 24.9 -24 32.7
Finance costs paid -
106.
2
-
85.2
-58 -
202.
8
Income taxes (paid) / received -
80.8
285 -21 -93 -315
Net cash inflow from operating activities 1,36 21 1,12 -22 1,45
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