Corporate Accounting Report: Share Capital and Funding Methods

This comprehensive report, prepared for the Chairman of Star Pty Ltd (SPL) by its CFO, delves into various aspects of corporate accounting and financial strategies. It begins by exploring the regulatory framework governing company accounting practices, including the roles of key entities like ASIC, RBA, Treasury, and APRA, and outlines the requirements for listed companies on the ASX. The report then contrasts ordinary and preference shares, highlighting their differences in voting rights, returns, risk, and dividend structures, along with restrictions on converting ordinary shares to preference shares. It examines methods of increasing share capital, such as rights issues, private placements, and share buybacks, in alignment with ASX listing rules. The report also covers procedures for share forfeiture and underwriting. Furthermore, the report includes an analysis of CSL Ltd.'s financial statements, illustrating how the company has raised funds and increased its share capital through share buybacks and employee share schemes. The report concludes with a summary of findings and recommendations, offering a practical guide for SPL's financial decision-making.