Corporate Accounting in Virgin Group

Running head: CORPORATE ACCOUNTING IN VIRGIN GROUP
Corporate Accounting in Virgin Group
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1CORPORATE ACCOUNTINGIN VIRGIN GROUP
Table of Contents
Statement of Cash Flow:..................................................................................................................2
Answer to Question (i):...............................................................................................................2
Answer to Question(ii):...............................................................................................................4
Analysis of comprehensive income statement:................................................................................5
Answer to Question(iii):..............................................................................................................5
Answer to Question(iv):..............................................................................................................5
Answer to Question(v):................................................................................................................5
Accounting in consideration to corporate income tax:....................................................................6
Answer to Question(vi):..............................................................................................................6
Answer to Question (vii):............................................................................................................6
Answer to Question (viii):...........................................................................................................6
Answer to Question (ix):.............................................................................................................7
Answer to Question(x):................................................................................................................8
Answer to Question (xi):.............................................................................................................8
References:....................................................................................................................................10

2CORPORATE ACCOUNTINGIN VIRGIN GROUP
Statement of Cash Flow:
Answer to Question (i):
In the current report, Virgin Australia is chosen as a company that is positioned as mong
the renowned airline organization within Australia and is listed within the Australian Securities
Exchange (ASX) having a code of VAH. The cash flow statement of the company is segmented
within investing, financing and operating activities (Bennedsen and Zeume 2017). Moreover, an
identical amount has been is reported in the part of reconciliation of the net loss to the net cash
from the business operations within the yearly report of the company. The items that are
explained within the companies each activity head is elaborated under:
Operating activities of cash flows:
The major items explained within the head includes the receipts from the consumers, payments
meant for the suppliers and employees, received finance income, paid finance costs and a few
more. The consumer recepts are considered as the amounts attained from credit sales. For Virgin
Australia, increase is gathered within the item fom$5,567.40 million in 2016 to $5,657.10
million in 2017, for the reason that it has strong credit policy (Burrell and Morgan 2017). The
staffs along with the payment of suppliers are the amounts which are acquired by Virgin Group
on credit along with salaries of the employees. In Virgin Group situation, increasing trend might
be observed in the year 2017 because of additional purchases from the suppliers along with
observing increase in the number of employees. Finance income is the attained sum for attained
to use money for repayment on demand at a particular point of time. Increase in this item might
be observed in 2017 as this is written off as a credit portion and the sales are deemed to be

3CORPORATE ACCOUNTINGIN VIRGIN GROUP
uncontrollable. Finance cost indicates the obligations and this has dropped in the company in the
year 2017 because of decreased interest payments on the loans undertaken.
Investing activities cash flow:
The major aspects those are listed within this section include plant, promptly and
equipment proceeds from along with advances to the deposits along with others (DeZoort,
Wilkins and Justice 2017). The payments associated with plant, proper and equipment is the
incurred amounts that are deemed to be necessary to carry out business conducts. In addition, for
the reason that these assets offer economic advantages to the company that is deemed as
proceeds. It might also be gathered that Virgin Australia has decreased its investment in this
aspects. Due to the same, this has not developed enough cash flows from these items as it has
sold as an aspect of plant, equipment and property. The proceeds along with the payments
associated with deposits serves as a financial instrument that is a contraindicating the repayment
time and for receiving the interest payable. Virgin Australia has made several payments in
comparison to the amounts than it has attained from deposits in the year 2017 because of
increased interest payable rate.
Financing activities cash flows:
The major items which are encompassed within this aspect include repayment of and
proceed from the borrowings, equity distribution along with various items. The borrowings
indicate the disbursed net amount to a borrower on the behalf of the lender within the loan
agreement terms. It might also be gathered from the annual report of Virgin Australia that the
proceeds firm borrowings have dropped in the year 2017. An increase has also been observed in
borrowings repayment that was also observed in the same year. Equity distribution indicates the