Corporate Accounting Analysis: Myer Holdings and Kathmandu Holdings

This report provides a detailed analysis of the financial statements of Myer Holdings and Kathmandu Holdings, both departmental store companies listed on the Australian Securities Exchange (ASX). The report examines key components of the statement of equity, statement of cash flows, and statement of comprehensive income for both companies. It delves into the understanding of each line item within these statements, including contributed equity, reserves, retained earnings, receipts from customers, payments to suppliers, and various cash flow activities. The analysis further explores deferred taxes, effective tax rates, and cash tax rates, comparing and contrasting these financial metrics. The report is structured to provide a comprehensive overview of the companies' financial positions, offering insights into their performance and financial health based on the provided financial data. The report is formatted according to the assignment brief, including an executive summary, table of contents, introduction, body, conclusion, and a list of references.

CORPORATE ACCOUNTING 1
CORPORATE
ACCOUNTING

CORPORATE ACCOUNTING 2
Executive summary:
The companies undertaken for review are Myer holdings and the Kathmandu holdings
Limited. Both of these companies are departmental stores. They deal in the women’s wear,
men’s wear etc. The report aims at understand each one of the line items contains in the
statement of equity, the statement of cash flows and the statement of comprehensive income.
It further talks about the deferred taxes, effective tax rates, the cash tax rates, the difference
between the 2.

CORPORATE ACCOUNTING 3
Contents
Introduction:........................................................................................................................................4
Owners’ equity:...................................................................................................................................4
Part i:................................................................................................................................................4
Part ii:...............................................................................................................................................7
Part iii:..............................................................................................................................................8
Part IV:...........................................................................................................................................20
Part v:.............................................................................................................................................21
Part vi:............................................................................................................................................22
Part vii:...........................................................................................................................................24
Part viii:..........................................................................................................................................25
Part ix:............................................................................................................................................25
Part x:.............................................................................................................................................26
Part xi:............................................................................................................................................26
Part xii:...........................................................................................................................................27
Part xiii:..........................................................................................................................................27
Part xiv:..........................................................................................................................................27
Part xv:...........................................................................................................................................28
Part xvi:..........................................................................................................................................29
References:.....................................................................................................................................31

CORPORATE ACCOUNTING 4
Introduction:
The first company chosen is Myer holdings which is the company based in the country of
Australia. It is a departmental store. The company has a number of store networks which
includes in the footprint of about 60 stores in the various different retail locations all across
the country. The company has products which includes women wear, men’s wear, miss shop
etc. the company has its own women’s wear brand, saas and bide. The company also has the
top brands such as TOPSHOP, Seed etc. the subsidiaries of the company includes Myer Pty
Ltd, NB Elizabeth Pty Ltd, NB Russell Pty Ltd, Warehouse Solutions Pty Ltd, Myer Group
Finance Limited, Myer Group Pty Ltd and Myer Travel Pty Ltd. There are many more
activities that are undertaken by the departments store retail business as well and this is done
through its subsidiaries (Reuters, 2018).
The second company undertaken for review include Kathmandu Holdings Limited which is
the company that has some transnational chain of the retail stores. The company deals in the
travel and adventure apparel. The company is also one of the leading retailers of clothing and
equipment for the purposes of travelling and also for adventure in the countries of New
Zealand, Australia and the UK. The company has about 163 stores all around the globe
(Kathmandu Holdings, 2018).
Owners’ equity:
Part i:
The following are the desired statements:
Myer Holdings:
Owner's equity:
(Amounts in $ in

CORPORATE ACCOUNTING 5
thousands)
Items Figures in the year
2017
Figures in
the year
2017
Understan
ding
Change Chan
ge in
%
Contributed
equity
7,39,329.00 7,39,33
8.00
Money
invested
into the
company
could be
due to sale
of shares
of the
company
0.00
%
Reserves -8,607.00 -
11,056.00
Amounts
set aside
by the
company
to meet the
future
contingenc
ies
could be
due to
addition of
previous
years
profit
-
22.15
%
Retained
earnings
3,42,146.00 3,79,48
3.00
Sum total
of all of the
amounts
set aside in
all the
previous
year
could be
due to
previous
years
profits/(los
ses) being
transferre
-
9.84
%

CORPORATE ACCOUNTING 6
d in this
account
Total 10,72,868.00 11,07,76
5.00
Kathmandu Holdings:
Particulars 2017 2016 Understandi
ng
Change Chang
e in %
(Amounts in NZ $ in
thousands)
Contributed
equity
2,0
0,209.00
2,0
0,191.00
Money
invested into
the company
could be due to
no change in
the new
capital/investm
ent by the
shareholders
0.01%
Retained
earnings
1,4
9,893.00
1,3
6,033.00
Amounts set
aside by the
company to
meet the
future
contingencie
s
could be due to
previous years
profits/(losses)
being
transferred in
this account
10.19
%

CORPORATE ACCOUNTING 7
Reserves -
23,002.00
-
24,541.00
Sum total of
all of the
amounts set
aside in all
the previous
year
could be due to
addition of
previous year’s
profit/(losses)
-
6.27%
Total 3,2
7,100.00
3,1
1,683.00
Part ii:
Myer Kathmandu
Particulars 2017 2017
Contributed equity
7,39,329.0
0
2,00,209.0
0
Reserves -8607
-

CORPORATE ACCOUNTING 8
23,002.00
Retained earnings
3,42,146.0
0
1,49,893.0
0
- -
Total
10,72,868.0
0
3,27,100.0
0
Part iii:
Myer Holdings:
Statement of cash flows
(Amounts in $
in thousands)
Particulars 2017 2016 Understanding Change in %
Cash flows from
operating
activities:
Receipts from
customers
29,31,853.00 31,
01,149.
amounts
received from
-5.46%

CORPORATE ACCOUNTING 9
(inclusive of
goods and
services tax)
00 the accounts
receivables on
account of
sales made
Payments to
suppliers and
employees
(inclusive of
goods and
services tax)
-27,44,651.00 -
29,15,4
67.00
amounts paid
in to the
suppliers
towards the
raw material
purchased
-5.86%
Other income -
71.00
amounts
received by the
company from
other
investments
Interest paid -10,165.00 -
15,894.
00
amounts paid
by the
company on
borrowings
made from
outside
Tax paid -27,759.00 -
20,369.
00
amounts paid
by the
company
towards taxes

CORPORATE ACCOUNTING 10
on the revenue
earned
Net cash
provided by
operating
activities
1,49,278.00 1,
49,490.
00
Cash flows from
investing
activities:
Payments for
property, plant
and equipment
-88,452.00 -
40,479.
00
amounts paid
by the
company
towards the
payments for
the property,
plant and
equipment
purchased
118.51%
Payments for
intangible assets
-24,217.00 -
11,891.
00
amounts paid
by the
company
towards the
103.66%

CORPORATE ACCOUNTING 11
purchase of
intangibles
Payment for
acquisition of
assets, under
business
combination
-13,000.00
-
amounts paid
by the
company
towards the
assets acquired
due to the
business
combination
Lease incentives
and
contributions
received
16,758.00
1,856.0
0
amounts paid
on account of
the lease
incentives and
the
contributions
received by the
company
Net investment
in associate
-966.00 -
8,680.0
0
amounts paid
by the
company for
making and
invetsment in
associate
-88.87%
Interest received 421.00 amounts

CORPORATE ACCOUNTING 12
943.00 received by the
company
towards the
interest
Net cash used in
investing
activities
-1,09,456.00 -
58,251.
00
Cash flows from
financing
activities
Repayment of
borrowings, net
of transaction
costs
-5,000.00 -
2,95,00
0.00
amounts paid
by the
company
towads
repaying in the
borrowings
-98.31%
Dividends paid
to equity holders
of the parent
-49,276.00 -
16,426.
00
amounts paid
by the
company as
dividend to the
shareholders
199.99%
Payment for -196.00 payments #DIV/0!