Seafarms & Select Harvest: A Comparative Financial Statement Analysis

This assignment involves a comparative analysis of the financial statements of two companies, Seafarms and Select Harvest Limited, both operating within the Food, Beverage, and Tobacco sector. The report focuses on comparing their statements of cash flows, statements of equity, and other comprehensive income statements. Seafarms, a major aquaculture operation known for its Crystal Bay Prawns, aims to develop sustainable aquaculture practices. Select Harvests, a vertically integrated health food supplier, specializes in almond production and processing. The analysis covers contributed equity, reserves, retained earnings, and cash flow activities, including operating, investing, and financing activities, to assess the financial health and performance of both companies. The report also includes a discussion on other comprehensive income and its impact, as well as an overview of accounting for corporate income tax, highlighting key financial metrics and trends for both Seafarms and Select Harvests over several years. Desklib provides access to this and other solved assignments.

CORPORATE ACCOUNTING 1
CORPORATE
ACCOUNTING

CORPORATE ACCOUNTING 2
Executive summary:
The assignment relates with the selection of 2 companies and then comparing their statement
of cash flows, the statement of equity and the other comprehensive income statement.
The 2 companies chosen in this assignment are Seafarms and Select Harvest limited. Both of
these companies belong to the sector of Food, Beverage and Tobacco (ASX, 2018).

CORPORATE ACCOUNTING 3
Contents
Introduction:...............................................................................................................................4
Owners’ equity:..........................................................................................................................5
Part i:......................................................................................................................................5
Part ii:.....................................................................................................................................8
Cash flow statement:..................................................................................................................9
Part iii:....................................................................................................................................9
Part IV:.................................................................................................................................18
Part v:....................................................................................................................................19
Other comprehensive income statement:.................................................................................20
Part vi:..................................................................................................................................20
Part vii:.................................................................................................................................21
Part viii:................................................................................................................................22
Part ix:..................................................................................................................................22
Accounting for corporate income tax:......................................................................................23
Part x:....................................................................................................................................23
Part xi:..................................................................................................................................23
Part xii:.................................................................................................................................24
Part xiii:................................................................................................................................24
Part xiv:................................................................................................................................24
Part xv:..................................................................................................................................25
Part xvi:................................................................................................................................26
References:...........................................................................................................................28

CORPORATE ACCOUNTING 4
Introduction:
The first company chosen is Seafarms which is one of the biggest aquaculture operations in
the country of Australia. The company sells in its products under the brand name of Crystal
Bay Prawns. The company aims at the strategic intent for the purposes of developing in the
aquaculture operations in order to produce in the highest quality of seafood. The company
has some operations which are large scale in nature. The company is a transformational
aquaculture of the country and this leads to a sustainable development of the production
system which are related to the large scale protein products. The main aim of the company is
the development of the world class Project Sea Dragon which is the standalone marine which
has the production system of shrimp. The production system of the company has about
10,000 hectares in the northern Australia along with 100,000 tonnes of the prawns each year
(Seafarms, 2018).
The second company chosen is Select Harvests which is the country’s biggest vertically
integrated company that supplies the health food and also has its wings in the fields of
Horticulture, Orchard Management, Processing, Sales and Marketing. This would help in the
benefitting of the various different capability throughout the value in chain. The company is
the largest growers of almond and is also a leading manufacturer, processor and the marketer
of the nut products.
The company has many orchards, located in Victoria, South Australia and the New South
Wales. The portfolio of the company sets across about 4,000 hectares of land.
The brands of the company provides a variety of almonds and other such natural products
(Select harvests, 2018).

CORPORATE ACCOUNTING 5
Owners’ equity:
Part i:
The following are the desired statements:
Seafarms:
Owner's equity:
(Amounts in $)
Particulars 2017 2016 Understandin
g
Change Change in %
Contribute
d equity
1015,12,
627.00
790,21,
152.00
this is the
amount of the
money that
each
shareholder
has invested
in the
company
could be due
to new
capital/invest
ment by the
shareholders
28.46%
Other
reserves
52,52,
773.00
52,52,
773.00
this is the
amount of
money that
the company
has put aside
from the net
profits earned
in the
could be due
to addition of
previous years
losses
0.00%

CORPORATE ACCOUNTING 6
previous
years for
some
contingency
that may
arise in future
or for future
unforseen
circumstances
Retained
earnings
-
740,46,7
80.00
-
542,71,3
17.00
these are the
part of the
profits earned
in the
previous
years after
paying off
dividend etc
could be due
to previous
years losses
being
transferred in
this account
36.44%
#DIV/0!
Total 327,18,
620.00
300,02,
608.00
Select Harvests:

CORPORATE ACCOUNTING 7
Particulars 2017 2016
Understandin
g Change
Change in
%
Contributed
equity
1,81,
164.00
1,78,
553.00
this is the
amount of the
money that
each
shareholder has
invested in the
company
could be due to
new
capital/investment
by the
shareholders 1.46%
Reserves
11,
602.00
11,
168.00
this is the
amount of
money that the
company has
put aside from
the net profits
earned in the
previous years
for some
contingency
that may arise
in future or for
future
unforseen
circumstances
could be due to
addition of
previous years
losses 3.89%

CORPORATE ACCOUNTING 8
Retained earnings
84,
853.00
1,01,
180.00
these are the
part of the
profits earned
in the previous
years after
paying off
dividend etc
could be due to
previous year’s
profits/losses
being transferred
in this account -16.14%
Total
2,77,
619.00
2,90,
901.00
Part ii:
The following is the desired analysis:
Seafarmers
Select
Harvests
Particulars 2017 2017
Contributed equity
1015,12,627.0
0
1,81,164.0
0
Reserves
52,52,773.0
0
84,853.0
0
Retained earnings - -

CORPORATE ACCOUNTING 9
740,46,780.00
Total
327,18,620.0
0
2,66,017.0
0
Cash flow statement:
Part iii:
Seafarms:
Cash flow statement:
(Amounts in $)
Particulars 2017 2016 Understanding Change in %
Cash flows from
operating
activities:
Receipts from
customers
366,79,7
84.00
249,41,0
98.00
these are the
amounts that the
company has
received from its
47.07%

CORPORATE ACCOUNTING 10
customers from
the sale of its
goods or services
Payments to
suppliers and
employees
-
504,81,89
0.00
-
346,54,73
2.00
these are the
amounts that have
been paid by the
company to the
suppliers that
supply the goods
that they
ultimtaley sell to
its customers
45.67%
Interest paid -
10,10,193.
00
-
4,70,768.0
0
this is the sum of
the interest paid
on the borrowed
capital by the
company
114.58%
Net cash
provided by
operating
activities
-
148,12,29
9.00
-
101,84,40
2.00
Cash flows from

CORPORATE ACCOUNTING 11
investing
activities:
Payments for
property, plant
and equipment
-
28,17,666.
00
-
11,53,848.
00
these are the
amounts that are
made by the
company towards
the property, plant
and equipment
144.20%
Proceeds
from/(Payments
for) other
financial assets
3,13,1
90.00
-
53,442.00
these are the
amounts that are
made/received by
the company
towards the
financial assets
-686.04%
Loans to related
parties -
-
74,190.00
amounts given to
the outsiders as
loan
-100.00%
Proceeds from
sale of non-
current assets
held for sale
-
12,80,0
00.00
these are the
amounts that are
received by the
company towards
the sale of non-
current assets
-100.00%
Proceeds from 2,0 these are the -100.00%

CORPORATE ACCOUNTING 12
sale of
available-for-
sale financial
assets
- 67.00 amounts that are
received by the
company towards
the sale of
securities
Interest
received
62,7
54.00
72,8
88.00
amounts received
by the company
towards the
interest from loans
given to outsiders
-13.90%
Net cash used in
investing
activities
-
24,41,722.
00
73,4
75.00
Cash flows from
financing
activities
Proceeds from
issues of shares
and other
equity securities
224,91,4
75.00
94,21,2
34.00
amounts received
by the company
from the sale of
equity shares
138.73%
Repayment of
borrowings
-
16,46,148.
-
30,58,000.
amounts paid to
the outsiders for
-46.17%