Hi5020 Corporate Accounting: Analyzing IPH Limited's Financial Statements

Hi5020 Corporate Accounting

Contents
Introduction:...................................................................................................................... 4
CASH FLOWS STATEMENT:............................................................................................5
(i) From your firm’s financial statement, list each item reported in the CASH FLOWS
STATEMENT and writes 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.. 7
ACCOUNTING FOR CORPORATE INCOME TAX:............................................................8
(vi) What is your firm’s tax expense in its latest financial statements?..................................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............................................................8
(viii) Comment on deferred tax assets/liabilities that are reported on the balance sheet
articulating the possible reasons why they have been recorded.............................................8

(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?...............................................9
(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

Introduction:
In this report, proper analysis will be done through comparative and corporative analysis in the
management of IPH Limited. This reading will explain about management and corporate income
tax and its method of accounting in the business. It will also explain the significance of corporate
income tax management and way to manage income tax such as deferred and current tax in order
to measure accuracy and efficacy of corporate income and income tax expense. It will describe
the way how to manage comprehensive income statement and differences and reason to manage
those items which are not recognised in original profit and loss statement of the IPH limited.