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Corporate Accounting Assignment - Eureka group holdings limited

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Added on  2020-05-16

Corporate Accounting Assignment - Eureka group holdings limited

   Added on 2020-05-16

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RUNNING HEAD: Tax analysis and corporate accounting1Name of the student-Topic- Tax analysis and corporate accountingUniversity name
Corporate Accounting Assignment - Eureka group holdings limited_1
Tax analysis and corporate accounting2Table of ContentsAnswer to question-1.............................................................................................................................3Answer to question-2.............................................................................................................................5Answer to question no-3........................................................................................................................5Answer to question no-4........................................................................................................................7Answer to question no-5........................................................................................................................8Answer to question no-6........................................................................................................................9Answer to question no-7........................................................................................................................9References...........................................................................................................................................12.
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Tax analysis and corporate accounting3This report has reflected the key understanding on Tax analysis and corporateaccounting of Eureka group holdings limited. This report has reflected the tax recording ofEureka group holdings limited and how this recording differ in accounting and tax rules andregulation.Answer to question-1The Eureka group holdings limited has equity capital divided into three specific parts. Common StockOther Accumulated profitRetained earnings or distributable profitThe common stock is the contributed capital which is invested amount by the equity shareholders. It is considered that Eureka group holdings limited has common stock AUD $ 94 million in 2017. In addition to this, retained earnings of company is AUD $ 19. However, it isshown as negative. As company has plugged back all of its retained earnings in its business (Eureka group holdings limited 2017).Equity (Amount in dollar million) ($M)20172016Common stock9491Retained earning1926Total equity 129111Discussion of equity part of the company
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Tax analysis and corporate accounting4It is observed that Eureka group holdings limited has negative retained earnings. It haskept AUD $ 19 million retained earning which is not good indicator for the organization. Company has plugged back all of its earning and shown negative retained earnings in its equity capital side. Therefore, it could be inferred that retained earnings is the amount of profit available for the company which it has used in its business and reflected negative retained earnings in its equity capital. Answer to question-2It is considered that the tax amount of money that is charged on the profit ofcompany. It is evaluated that Eureka group holdings limited has been paying zero amount oftax throughout the time. It is observed that Eureka group holdings limited has beendelivering, affordable, caring and inclusive committee which is operating its business in thebest inters of needy people. Therefore, government has exempted company from its taxpayment and there is no implication on the company to pay tax on its profit. Particular(AUD $ in million)20152016Income tax expenses00Therefore, it could be inferred that there are several companies who have beenexempted by the government from the tax implication. Eureka group holdings limited is oneof the exempted company for the tax payment. However, company has good amount of profitin its business which is plugged back by company in its business operations for thebetterment of society and people at large. It has reduced the income tax burden of company indetermined approach.
Corporate Accounting Assignment - Eureka group holdings limited_4

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