HI5020 Corporate Accounting: Comparative Analysis of AGL & Beach

This report provides a comprehensive analysis of AGL Energy Limited and Beach Energy Limited, focusing on key corporate accounting aspects. It examines the owner's equity, compares comprehensive income statements, and analyzes tax expenses, effective tax rates, and deferred tax assets and liabilities for both companies. The report uses data from the companies' annual reports to evaluate their financial positions and changes in their financial performance between 2016 and 2017. The analysis helps in understanding the financial health and tax strategies of AGL Energy and Beach Energy, providing insights into their corporate accounting practices. This document is available on Desklib, a platform offering a range of study tools and solved assignments for students.

Corporate
Accounting

Table of contents
• Introduction
• Description of owner’s equity for AGL and Beach
Energy Limited
• Comprehensive Income Statement Comparison
• Tax Expenses
• Effective tax rate
• Deferred tax assets and liabilities
• Conclusion
• References

Introduction
• The report explains about the various corporate
accounting aspects which are been taken into
consideration by the individuals in context of AGL
Energy Limited and Beach Energy Limited.
• The aspects of the other comprehensive income
statement are also depicted and with the
understanding of the corporate taxes are also
provided throughout the report by calculating the
effective tax rates.

Description of owner’s equity of Beach and
AGL Energy Limited
• In AGL Energy constrained the obligation has demonstrated
the immense increment which can be uncovered that the
sum in 2016 was $6678 which has expanded to $6884 and
the value sum has been diminished from $7926 to $7574.
• In Beach Energy Limited it has been seen that the measure
of obligation has been diminished from 2016 to 2017 that is
it was $149 and which diminished to $126 which is great
sign for the association (Beach Energy Limited, 2018). The
measure of the value has been expanded that is in 2016 it
was $1074 which expanded to $1402.

Statement Comparison (AGL
Energy Limited)
Particulars 2016 2017 change 2016-2017
Items that will not be reclassified subsequently to profit or loss
Remeasurement gain/(loss) on defined benefit plans -111 107 218
Income tax relating to items that will not be reclassified subsequently 33 -32 -65
Items that may be reclassified subsequently to profit or loss
The gain in fair value of cash flow hedges 12 72 60
Reclassification adjustments transferred to profit or loss 29 -15 -44
The share of other comprehensive income of a joint venture -1 0 1
Reclassification of joint venture losses transferred to profit or loss on
disposal of investment
15 0 -15
Income tax relating to items that may be reclassified subsequently -12 -17 -5
Other comprehensive income for the year, net of income tax -35 115 150

Comprehensive Income
Statement Comparison
(Beach Energy Limited)
Particulars 2016 2017 change 2016-
2017
Items that may be reclassified to profit or loss
Net change in fair value of available-for-sale financial assets -9.3 13.8 23.1
Net gain/(loss) on the translation of foreign operations 2.1 -0.3 -2.4
Tax effect relating to components of other comprehensive
income
0.6 -2.3 -2.9
Other comprehensive income, net of tax -6.6 11.2 17.8

Tax Expenses
Particulars Amount ($) million
Current financial year tax expense 6.0
Over provision in the prior year (4.3)
Other 0.1
Recognition of capital losses (2.3)
Recognition of deferred taxes (79.3)
Income tax benefit (79.8)

Effective tax rate
(AGL)
Particulars Amount ($) million
Income tax expense 225
EBT 764
Effective tax rate 29.4%

Effective tax rate
(Beach )
Particulars Amount ($) million
Income tax expense (79.8)
EBT 307.7
Effective tax rate 25.9%

Deferred tax assets
and liabilities
• It has been observed that in the financial
statements of the Beach Energy Limited there is
$79.3 million which is reported as the deferred tax
assets.
• The Deferred tax assets in the event of AGL Energy
constrained is $792 million which is identifying with
impose misfortunes perceived amid the earlier
years and whose advantage will be gotten in the
present assessment year. The

Conclusion
• From the overall discussion it can be concluded that
financial statements are necessary as they help in
examining the financial position of organization.
• The comparisons are also evaluated so that the
reason for change can be determined and accordingly
the actions for future growth can be taken.
• The tax rates will helps in analysing the amounts that
needs to be paid by the organization in the form of
tax.

References
AGL Energy Limited. (2017). Annual report. [Online]. Retrieved from:
https://www.agl.com.au/-/media/aglmedia/documents/about-agl/investors
/annual-reports/170825-agl-207-annual-report-asx.pdf?
la=en&hash=7DAB19CD5A9A948AA9ACCF3D0B5C4D19E6402AE4
Beach Energy Limited. (2016). Annual report. [Online]. Retrieved from:
http://www.beachenergy.com.au/irm/PDF/6288_0/2016BeachEnergyLtdAn
nualReport Beach Energy Limited. (2017). Annual report. [Online]. Retrieved
from:
http://www.beachenergy.com.au/irm/PDF/6793_0/2017annualreport?
IncludeUnapproved=83324855
Crane, A. and Matten, D., (2016). Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. UK: Oxford
University Press.