Corporate Accounting Report: Financial Analysis of HVN and SGR

This report provides a comparative financial analysis of Harvey Norman Holdings Limited (HVN) and The Star Entertainment Group (SGR), both listed on the Australian Stock Exchange (ASX). The report examines key aspects of their financial performance, including owners' equity, cash flow statements, other comprehensive income, and accounting for corporate income tax. The analysis of owners' equity covers share capital, retained earnings, and reserves, providing a snapshot of the companies' financial structure. The cash flow statement analysis focuses on operating, investing, and financing activities, offering insights into the companies' cash management. Furthermore, the report calculates and compares the effective corporate income tax rates for both companies over several years. The conclusion highlights the growth of both companies, the enhancement of their asset portfolios, and the financial stability of their capital structures and investment activities. The report is supported by references to the companies' annual reports and financial analysis resources.

CORPORATE ACCOUNTING
Harvey Norman Holdings Limited and The
Star Entertainment Group

INTRODUCTION
 The report will be prepared for the evaluation
of the two public limited companies listed on
Australian stock Exchange (ASX).
 The names of the companies are Harvey
Norman Holdings Limited and The Star
Entertainment Group
 It evaluates owners equity, cash flow
statement, other comprehensive income and
accounting for corporate income tax

OWNERS EQUITY
 The heads covered under owner’s equity
were:
 Share capital
 Retained earnings
 Reserves HVN SGR
Share capital $386.309m $2580.5m
Reserves $174.950m $(7.2)m
Retained profits $2229.20m $702.3m

DEBT AND EQUITY POSITION
2015 ($) 2016($) 2017 ($)
HVN (Equity) 2556.860m 2688.674m 2812.907m
Debt 518.605m 464.114m $633.412m
SGR (equity) 3035.4 3147.7m 3275.6m
Debt 989.20m 1068.00m 1150.4m

CASH FLOW STATEMENT
 This statement consists of the over all actual
cash flow in a accounting period.
 The main activities are
 Operating activities
 Investing activities
 Financing activities

CASH FLOW COMPARISON
Particulars HVN
Amount in $
SGR
Amount in $
Cash flow from operating
activities
425.140m 473.3m
Investing activities (198.765 ) (591.5m)
Proceeds of the financing
activities
(287.124m) 72.9m

ACCOUNTING FOR CORPORATE
INCOME TAX
 Effective tax rate = Income tax
expense/earnings before tax
 HVN
 Year 2015 = 109.186/378.100 = 0.289
 Year 2016 = 142.423/493.763 = 0.289
 Year 2017= 186.840/639.806 = 0.292
 SGR
 2015 = 67.9/287.1= 0.236
 2016 = 84.8/279.2 = 0.304
 2017= 115.6/380.00 = 0.3042

CONCLUSION
 Both the companies are growing at rapid
pace
 Assets portfolio is enhanced year by year at
Harvey Norman holdings Limited and Star
Entertainment Group
 Owners equity indicates significant growth in
the share capital of HVN where as SGR have
stable capital.
 Cash flow statement indicates investments in
property, plant and equipments and
investment properties.

REFERENCES
 Harvey Norman Holdings Limited (2018). COMPANY
OVERVIEW. Retrieved from:
http://www.harveynormanholdings.com.au/company/
 Higgins, R. C. (2012). Analysis for financial
management. USA: McGraw-Hill/Irwin
 HVN (2016). 2016 ANNUAL REPORT. Retrieved from:
http://clients.weblink.com.au/news/pdf/01784649.pdf
 HVN (2017). 2017 ANNUAL REPORT. Retrieved from:
https://static1.squarespace.com/static/54803162e4b0
8e1b8a472201/t/59cded6780bd5e4dbeef7f83/150666
7916831/2017-Annual-Report.pdf
 SGR (2016). ANNUAL REPORT 2016. Retrieved from:
https://static1.squarespace.com/static/55f76728e4b07
99db9586a8d/t/59c4910f2aeba5101ca0028e/1506054
434087/Star+Annual+Report+2016.pdf