Analysis of Funds and Liabilities: Australian Vintage, Domino's Pizza

This report analyzes the corporate accounting practices of Australian Vintage Ltd and Domino's Pizza Enterprise, focusing on their sources of funds, asset valuation, and liabilities. The analysis reveals that both companies primarily rely on equity capital. The report examines the classification of assets into current and non-current categories, as well as the breakdown of liabilities into short-term and long-term obligations. The financial statements and annual reports of both companies are assessed, with particular attention to the disclosure of contingent liabilities and the implications of AASB 137. The report highlights the importance of financial reporting and the impact of borrowings on a company's financial position. The study provides insights into the financial structure and reporting practices of these two companies, offering a comprehensive overview of their accounting strategies.

Corporate Accounting

Source of Fund
 The sources of funds which is utilized by a business are
mainly equity capital and debt capital for which an
appropriate mixture is made regarding the source of funds
which is used by a business. The companies which are
selected for the presentation are Australian Vintage ltd and
Domino’s Enterprise Pizza Ltd .
 The capital structure which is used by both the companies
are quite similar in nature and the analysis reveals that the
business relies more on equity source of capital for the
purpose of financing the operations.

Proportion of Funds Used

Reported Assets
 The assets of the business are classified as per the valuation
and reporting requirements for the same and these are covered
in the annual report with proper disclosures related to the same.
 In the case of Australian Vintage Ltd as well as Domino’s Pizza
Enterprise, the assets which are represented in the annual
reports are similar and the same are bifurcated appropriate on
the basis of current and non-current assets (Barkemeyer,
Preuss and Lee 2015). The current assets involve trade
receivables, other current assets and tax assets while non-
current assets contain fixed assets for the business.

Liabilities of the Businesses
 The total of the liabilities and equities of a business equals the total of the asset
side of the business. As per the reporting framework which is adopted by
Australia Vintage Ltd for the year 2019 shows that the management has
effectively shows the sub-parts of current and non-current liabilities so that it
can be effectively determined which liabilities are short term and which are long
term in nature (Aversano and Christiaens 2014).
 In the case of Domino’s Pizza Enterprise, the management of the company has
also properly represented the reporting aspects of liabilities so that appropriate
financial position can be available to the investors of a business. The annual
reports shows that the business has a material amount of deferred tax liabilities
as well as provisions which has increased from previous year estimates
(Demartini and Paoloni 2013). The non-current liabilities for the business show
an increase which is mainly due to the increase in borrowings of the business
which also creates interest burden over the management of the company.

Reporting for AASB 137
 In the case of Australian Vintage Ltd, the annual report
shows that the business has contingent liabilities which are
appropriately disclosed in the financial statements of the
business.
 On the other hand, the financial statement of Domino’s Pizza
Enterprises for the year 2019 shows that the management
has appropriately disclosed contingent liabilities for the
business and the same are covered in the notes to account
section of the annual report of the business.

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