Financial Statement Study: Caltex Australia Limited & Whitehaven Coal

This report presents a comprehensive financial analysis of Caltex Australia Limited and Whitehaven Coal Limited, both prominent corporations listed on the Australian Securities Exchange (ASX) within the energy sector. The analysis encompasses a detailed examination of their annual reports, focusing on key financial aspects such as owner's equity, cash flow statements (operating, investing, and financing activities), and the accounting for corporate income tax over the years 2017, 2016, and 2015. The study compares their performance, revealing that Whitehaven Coal Limited demonstrates superior performance in managing investing and financing activities and exhibits a stronger solvency position with a lower debt-to-equity ratio compared to Caltex. The report includes a comparative analysis of debt and equity structures, highlighting the financial risks associated with each company's capital structure. Furthermore, the report provides insights into the cash flow statements, analyzing the inflows and outflows from operating, investing, and financing activities of both companies. The report also includes a detailed analysis of the tax structure of both the companies.

Financial Statement Study 1
Financial Analysis
Caltex Australia Limited & Whitehaven Coal Limited

Financial Statement Study 2
Executive summary:
This report presents the financial analysis of two large corporations which are listed on ASX
and are operating under the energy sector of Australia. The companies chosen herein are:
Caltex Australia and Whitehaven Coal Limited. The annual reports of both the companies
have been analysed thoroughly and it has been observed that Whitehaven Limited is
performing better than Caltex in various aspects such as management of investing and
financing activities and it terms of solvency as Caltex is holding 51% of debt in its capital
structure whereas Whitehaven is holding merely 17% of the total capital structure. Though
the effective rate of Whitehaven is lesser than Caltex, the cash tax rate of Whitehaven is
higher than that of Caltex. The cash tax rate of Whitehaven is 29.43% whereas Caltex has the
cash tax rate of 27.60%

Financial Statement Study 3

Financial Statement Study 4

Financial Statement Study 5
Table of Contents
Executive summary:..............................................................................................................................2
Introduction:..........................................................................................................................................5
Part 1: Owner’s equity:..........................................................................................................................6
Part 2: Cash-flows statement..............................................................................................................10
Part 3: Other Comprehensive income statement................................................................................16
Part 4: Accounting for Corporate Income Tax.....................................................................................18
References:..........................................................................................................................................21

Financial Statement Study 6
Introduction:
For the purpose of this assignment, two companies which are listed on the Australian
Securities Exchange are selected. These companies are: Caltex Australia and Whitehaven
Coal Limited. In order to analyse the financial performance of the selected companies, the
said companies are chosen from the energy industry of Australia. The selection of the
companies from the same industry will allow performing comparative analysis of
performance of both companies on the same grounds.
Caltex Limited is one of the leading manufacturers and supplier of petroleum products in
Australia. However, the company exports its products to Singapore and New Zealand also.
Caltex is in operations since 1900 and is headquartered in Sydney, Australia. It is operating
its business through two prime segments: Supply & Marketing Segment and Lytton Segment.
The former segment undertakes the selling function of Caltex’s products such as fuels,
lubricant & diesel oils, liquefied petroleum gas, speciality products and so on. The Lytton
segment, on the other hand undertakes the refining function in respect of crude oil to convert
the same into diesel oil, fuel and other petroleum products.
Whitehaven Coal Limited is also an Australian leading corporation in energy sector,
headquartered in Sydney. It is engaged in the business of development of coal mines in the
New South Wales, Australia. The company started its operations in 1999 and presently it is
supplying its coal products to various domestic units and also to various different foreign
countries such as Japan, Taiwan, India, China, Korea, Malaysia, Indonesia, Vietnam, the
Philippines and Chile. Whitehaven Limited also operates its business through two segments
i.e. pen Cut Operations and Underground Operations. Also, the company owns six mines in
North West New South Wales. It basically offers thermal coal and also the metallurgical coal
products.

Financial Statement Study 7
To assess and analyse the financial performance of Caltex Limited and Whitehaven Limited,
various aspects of financial statements have been studied in detailed for the last three
financial years: 2017, 2016 and 2015. The major financial aspects that have been taken into
account for the purpose of this report are: company’s equity structure, capital structure, cash
flows from operating, investing and financing activities and the tax structure of both the
companies.
Part 1: Owner’s equity:
The term equity refers to owner’s interest in the business of the corporation. Technically, it is
the residual interest in the company’s assets after deduction of all the business liabilities. It
basically represents the amount owned by company to its owners (Hermanson, Ivancevich,
Edwards, 2016).
Caltex Limited
Amount in Australian Dollars Thousands
2017 2016 2015
Issued capital $ 378,505.00 $ 524,944.00 $ 543,415.00
Treasury stock -$ 1,210.00 -$ 344.00 -$ 644.00
Reserves -$ 39,511.00 -$ 7,955.00 -$ 9,223.00
Retained earnings $ 2,610,195.00 $ 2,280,754.00 $ 2,241,981.00
Equity $ 2,947,979.00 $ 2,797,399.00 $ 2,775,529.00
Non-controlling
Interest $ 13,843.00 $ 12,816.00 $ 12,276.00
Total Equity $ 2,961,822.00 $ 2,810,215.00 $ 2,787,805.00

Financial Statement Study 8
From the annual report of Caltex Limited for the year 2017, 2016 and 2015, the items
contained in the above table (Table 1) have been identified.
Issued capital is the part of share capital held by business, which has been issued to the
shareholders of the company to seek funds for the operations of business (AASB, 2005).
There has been reported a material change in the value of issued capital of Caltex Limited in
2017 since 2016. The reason from the same is that Caltex has announced a buy-back plan for
its shares during 2016 in order to adequately management its capital (Caltex, 2016).
Treasury stock covers the amount of shares bought-back by the company and it is shown as
the negative amount in the financial statements because it reflects reduction in the share
capital of the reporting entity on account of share buy-back. The changes in the treasury stock
account have taken place because of Caltex’s decision of buying back its shares from the
market.
Reserves contain the profits of the business which are appropriated for some particular
purpose. Caltex has prepared various reserves such as foreign currency translation reserve,
hedging reserve, equity compensation reserve. The reserves of Caltex are showing negative
balances in 2016 and 2017 which shows that it is not able to maintain adequate funds for the
other non-operating operations of the business (Caltex, 2016). The reduction in the reserves
amount over the last 3 reported years is due to negative differences in the foreign currency
translation, hedging losses and due to the actuarial gains.
Retained earnings are the part of profits earned by business during the given period which is
set aside for the subsequent use in the daily operations of business only and for the purpose of
payment of dividend. The balance of retained earnings has increased over the previous 3
financial years due to the increased profitability of Caltex in those periods. The company has
not merely earned from the sales of its products but also it has earned other incomes by way

Financial Statement Study 9
of hedging and changes in fair valuations. Though the company has made buy-back of its
shares, still it has maintained adequate amount for the internal functions because of large
profits.
There are certain shareholders who do not hold more than 50% of the outstanding shares of
the company and hence they do not enjoy the voting rights for the important decisions that
are made by the company. They do not have control on the decisions of the company. These
shareholders are also known as minority interest. In the present case of Caltex, the minority
interest in the company’s shareholding has slightly been increased due to the introduction of
various share based plans.
Whitehaven Coal
2017 2016 2015
Issued capital $ 3,136.94 $ 3,144.94 $ 3,146.15
Share based
payments
reserve $ 7.83 $ 18.42 $ 36.54
Hedge reserve $ 1.28 -$ 0.55 -$ 1.38
Retained
earnings $ 146.25 -$ 275.17 -$ 317.35
Parent
Company
Interest $ 3,292.30 $ 2,887.64 $ 2,863.96
Non-
controlling
interest $ - $ 1.08 $ 1.08
Total Equity $ 3,292.30 $ 2,888.72 $ 2,865.03
The above table (Table 2) enlists the items that have been identified as the components of
equity of Whitehaven Limited.
Issued capital of Whitehaven has not significantly varied in all the three reported years and
this shows that there is no major event or activity taken on part of the company in respect of
its capital structuring. Merely some share based incentive plans have been exercised by few

Financial Statement Study 10
of the employees which has caused slight change in the quantum of issued capital of the
company.
Share based payment reserves are prepared for the payment of goods and services received
during the course of the business to be made in the form of equity instruments. This enhances
the capital of the company when such shares are issued to the dealers of the company. In the
case of Caltex, there are some share based payment options which have been lapsed in the
respective years and due to this balance of these reserves have been reduced.
Hedge reserves are maintained by the firm to undertake hedging activities. The company has
earned profits on its hedging transaction in 2017 due to which its hedging reserves have
increased (Woodhaven, 2017).
Retained earnings have also increased in 2017 and this due to higher profits earned by the
company in this particular year. Even though, there was negative in 2016 due to inadequacy
of profits in 2015, the company has earned sufficient income in 2017.
The parent company is the company which holds maximum portion of shareholders of the
company. The portion of parent company’s control has increased due to increase in the
number of shares issued to them in 2017 (Woodhaven, 2017).
Comparative analysis of debt and equity structure:
Comparati
ve Analysis Caltex Limited Proportion Whitehaven Coal
Proporti
on
Equity $ 3,108.26 49%
$ 3,292.30
83%
Debt $ 3,247.32 51.%
$ 674.74
17%
Capital
Structure $ 6,355.58 100.00%
$ 3,967.04
100.00%

Financial Statement Study 11
In terms of insolvency, Caltex is facing high risk because of its higher debt proportion in the
total capital structure. Caltex is relying more on debt financing than the internal financing for
its business operations and hence it has high financial leverage. On the other hand,
Whitehaven is highly relying on equity financing and hence it has no or negligible financial
risk but there is greater risk of loss of control over the ownership of the company due to
heavy reliance on equity in case of Whitehaven.
Part 2: Cash-flows statement
Caltex Limited
Cash Flow Statement 2017 2016 2015
Cash flows from
operating activities
Receipts from customers
$
23,693,457.00
$
20,025,940.00
$
22,895,469.00
Payments to suppliers,
employees and
governments
-$
22,654,228.00
-$
19,014,981.00
-$
21,896,673.00
Shares acquired for
vesting employee benefits
-$
10,540.00
-$
10,952.00
-$
29,304.00
Dividends and
disbursements received
$
300.00
$
400.00
$
3,014.00
Interest received
$
3,125.00
$
7,077.00
$
5,561.00
Interest and other finance
expenses paid
-$
57,693.00
-$
65,687.00
-$
61,729.00
Income taxes paid
-$
239,389.00
-$
13,595.00
-$
31,672.00
Net operating cash
inflows
$
735,032.00
$
928,202.00
$
884,666.00
Cash flows from
investing activities
Purchase of investment
-$
17,686.00
Purchases of businesses,
net
-$
425,902.00
-$
7,268.00
Acquisition of property,
plant and equipment
-$
324,077.00
-$
290,288.00
-$
340,096.00
Major cyclical -$ -$ -$

Financial Statement Study 12
maintenance 38,820.00 32,933.00 91,422.00
Purchases of intangibles
-$
49,004.00
-$
30,241.00
-$
15,414.00
Sale of property, plant and
equipment
$
37,455.00
$
13,865.00
$
43,095.00
Net investing cash
outflows
-$
800,348.00
-$
357,283.00
-$
411,105.00
Cash flows from
financing activities
Proceeds from borrowings
$
5,001,095.00
$
6,630,000.00
$
7,676,000.00
Repayments of
borrowings
-$
4,842,447.00
-$
6,630,000.00
-$
7,676,000.00
Repayment of finance
lease( principal)
-$
561.00
-$
342.00
-$
219.00
Dividends: non-
controlling interest
-$
1,000.00
-$
800.00
Shares bought back
-$
270,079.00
Dividends paid
-$
292,107.00
-$
319,405.00
-$
261,900.00
Net financing cash
outflows
-$
135,020.00
-$
589,826.00
-$
262,919.00
Net (decrease) in cash and
cash equivalents
-$
200,336.00
-$
18,907.00
$
210,642.00
Opening Cash and cash
equivalents
$
244,857.00
$
263,764.00
$
53,122.00
Closing Cash and cash
equivalents
$
44,521.00
$
244,857.00
$
263,764.00
Whitehaven Coal
WHITEHAVEN COAL 2017 2016 2015
Cash flows from
operating activities
Receipts from customers
$
1,737,063.00
$
1,188,341.00
$
740,162.00
Payments to suppliers &
employees
-$
1,081,737.00
-$
919,010.00
-$
527,738.00
Interest received
$
1,405.00
$
1,056.00
$
4,752.00
Interest paid
-$
49,087.00
-$
56,123.00
-$
39,914.00
Income taxes paid/refund -$ $

Financial Statement Study 13
42,331.00 36,111.00
Net operating cash
inflows
$
607,644.00
$
171,933.00
$
213,373.00
Cash flows from
investing activities
Acquisition of property,
plant and equipment
-$
89,462.00
-$
88,867.00
-$
430,555.00
Sale of property, plant and
equipment
$
971.00
$
902.00
Purchase of intangible
assets
-$
4,975.00
Exploration and evaluation
expenditure
-$
5,161.00
-$
5,107.00
-$
851.00
Net investing cash
outflows
-$
93,652.00
-$
93,072.00
-$
436,381.00
Cash flows from
financing activities
Purchase of shares
-$
8,380.00
-$
1,351.00
-$
153.00
Proceeds from borrowings
$
18,687.00
$
9,450.00
$
1,125,000.00
Repayments of borrowings
-$
519,299.00
-$
73,610.00
-$
858,246.00
Repayment of finance
lease( principal)
-$
18,708.00
-$
13,503.00
-$
17,283.00
Payment of finance facility
upfront costs
-$
607.00
-$
787.00
-$
27,084.00
Net financing cash
outflows
-$
528,307.00
-$
79,801.00
$
222,234.00
Net (decrease) in cash and
cash equivalents
-$
14,315.00
-$
940.00
-$
774.00
Opening Cash and cash
equivalents
$
101,453.00
$
102,393.00
$
103,167.00
Closing Cash and cash
equivalents
$
87,138.00
$
101,453.00
$
102,393.00
Operating activities are those activities which are undertaken in the course of business as a
result of normal business operations which helps in generating normal sales from the
business.
In case of Caltex Limited, the basic operating activities that have been undertaken in all the
three years are enlisted in the above table. There is an inflow of cash in the business from the

Financial Statement Study 14
cash collection made from the customers to whom goods are sold by Caltex and also the
company has received certain amount of interest and dividend income in all the three years.
The payment of income tax and to the suppliers and employees of the company has resulted
in outflow of cash from the business.
In case of Whitehaven Limited also the payment has been made to the suppliers and
employees of the company and also the income taxes have paid in 2016. Further the interest
on the borrowings made for the operations have been made in all the three years. These
activities have resulted in outflow of cash from the business. However, the Whitehaven has
also made cash collections from its customers for the sales made to them and in 2015, the
company has also received income tax refund for the excessive payment made by it during
the previous year. All it has earned certain operating interest income. These activities have
contributed to inflow of cash for the business.
Investing activities are those activities which involves buying and selling of the non-current
assets of the business and also investments. In 2016, Caltex has purchased certain
investments and this has resulted in the cash outflow for the business. In 2017 and 2015, the
assets and liabilities are assumed as a result of business combination transactions entered into
by Caltex. Further, the company has also paid the cyclical maintenance charges for its sites
and equipment and has also purchased the assets which are of intangible nature. All these
transactions and events have led to outflow of cash from the business. Along with these
purchase transactions, Caltex has also disposed its property, plant and equipment which had
resulted in cash inflow of the business.
Whitehaven limited has made investment in acquisition of long term assets for the business
such as property plant and equipment, tangible assets and also expenditure has been incurred
in respect of its evaluation and exploration process. Since, this expenditure is going to

Financial Statement Study 15
provide benefits for the longer years it has been treated as the capital investment under which
cash flow is taken place. During the course of business, the company has also disposed its
certain non-current assets because of the termination of their useful lives or for the reason of
technological obsolesce. The sale of these assets has resulted in cash inflow for the business.
Financing activities involves those transactions that are entered into by the firm with its
creditors and investors to finance the basic operations of business.
In case of Caltex Limited, the company has made payment of various borrowings made by it
previously to generate the required funds for business. These borrowings have been repaid in
the reported years and it has resulted in outflow of cash. Also, since the company has
undertaken buy-back event in 2016, there is an outflow of cash for such event. Further, the
company has generated additional funds from the market through debt financing and this has
resulted in cash inflow for the business. Moreover, Caltex has also paid dividend to its
shareholders.
As a part of financing activities, Whitehaven has purchased the shares of other companies
and this has resulted in cash outflow from its business. Further, the company has made
repayment for its debt obligations which had become due during the reported years. Finance
facility upfront costs are those costs which are incurred at the initiation time while
undertaking financial assistance from the providers of finance. These transactions have
resulted in cash outflow for the business.
Comparative analysis of 3 years performance
2017 2016 2015
Caltex Limited
Net operating cash
inflows $ 735,032.00 $ 928,202.00 $ 884,666.00
Caltex Limited Net investing cash

Financial Statement Study 16
outflows
-$ 800,348.00 -$ 357,283.00 -$ 411,105.00
Caltex Limited
Net financing cash
outflows -$ 135,020.00 -$ 589,826.00 -$ 262,919.00
2017 2016 2015
Whitehaven Coal
Net operating cash
inflows $ 607,644.00 $ 171,933.00 $ 213,373.00
Caltex Limited
Net investing cash
outflows -$ 93,652.00 -$ 93,072.00 -$ 436,381.00
Whitehaven Coal
Net financing cash
outflows -$ 528,307.00 -$ 79,801.00 $ 222,234.00
In case of Caltex Limited, the maximum cash amount generated through operating activities
was in 2016 in-spite of having minimum collection from customers for the sales made to
them. This is due to the fact that company has made lesser payments to the suppliers and
employees in 2016 as compared to other two reported years. In terms of investing activities,
maximum cash flow is occurred in 2017 due to occurrence of business combination events in
the said year and in 2016, the least outflow of cash has been reported due to the fact that
company has incurred least amount for its maintenance of sites and for the purchase of PPE.
In 2016, there has been reported maximum cash out flows in the areas of financing activities
because of implementation of share buy-back scheme in 2016.
In case of Whitehaven Limited, maximum cash collection has been in 2017 from the
operating activities because of larger sales. In terms of investing activities, least outflow of
cash was reported in 2015 because in that particular year company has made lesser purchase
of PPE. In terms of financing activities, maximum cash outflow was reported in 2016 because
of larger sums of repayment of borrowings (Whitehaven, 2015).
Comparative analysis of companies
Companies 2017 2016 2015
Caltex Limited Net operating cash
inflows $ 735,032.00 $ 928,202.00 $ 884,666.00

Financial Statement Study 17
Whitehaven
Coal
Net operating cash
inflows $ 607,644.00 $ 171,933.00 $ 213,373.00
Caltex Limited Net investing cash
outflows -$ 93,652.00 -$ 93,072.00 -$ 436,381.00
Whitehaven
Coal
Net investing cash
outflows -$ 800,348.00 -$ 357,283.00 -$ 411,105.00
Caltex Limited Net financing cash
outflows -$ 135,020.00 -$ 589,826.00 -$ 262,919.00
Whitehaven
Coal
Net financing cash
outflows -$ 528,307.00 -$ 79,801.00 $ 222,234.00
In terms of operating activities, Caltex is performing better than Whitehaven Limited in all
the years because it has generated higher cash in-flows for the business. In terms of investing
activities, Whitehaven is performing better than Caltex in all the three years as it has made
lesser outflow of cash from the business in such activities. In terms of financing activities,
Caltex performed better than Whitehaven in 2017 by allowing flow of lesser cash out of the
business. But in 2016 and 2015, Whitehaven had performed better as it had resulted in less
cash flows than Caltex in 2016 and in 2015, it has managed its financing activities in such as
a way which has resulted in cash inflow for the business (Caltex, 2015).
Part 3: Other Comprehensive income statement
Caltex Limited
Other comprehensive income
Items not to be recycled to profit or loss Caltex Limited
Actuarial gain/(loss) on defined benefit plans $ 3,519.00
Tax on items not to be reclassified to profit or loss -$ 1,056.00
Total value of Items not to be recycled to profit or loss in
further periods $ 2,463.00
Items to be not recycled
Foreign currency translation differences -$ 29,577.00
Valuation gain/loss
Fair value changes of net investment hedges $ 1,045.00
Effective portion of changes in fair value of cash flow hedges -$ 45,221.00
Net change in fair value of cash flow hedges reclassified to $ 45,294.00

Financial Statement Study 18
profit or loss
Tax on items to be reclassified to profit or loss -$ 2.00
Total value of Items to be recycled to profit or loss in
further periods -$ 28,461.00
Total comprehensive income/loss -$ 25,998.00
Whitehaven Petroleum
Items to be recycled
Net movement on cash flow hedges $ 2,618.00
Tax on items to be reclassified to profit or loss -$ 785.00
Total value of Items to be recycled to profit or loss in
further periods $ 1,833.00
Total comprehensive income/loss $ 1,833.00
Part vii
These items have not been included in the income statement for the reason that such gains
have not yet been realised by the company and also they do not belong to the core business
operations of both the companies.
Part viii
Comparative analysis
Other comprehensive income
Items not to be recycled to profit or loss Caltex Limited Whitehaven Coal
Actuarial gain/(loss) on defined benefit
plans $ 3,519.00
$
-
Tax on items not to be reclassified to profit
or loss -$ 1,056.00
$
-
Total value of Items not to be recycled to
profit or loss in further periods $ 2,463.00
$
-
Items to be recycled
Foreign currency translation differences -$ 29,577.00
$
-
Valuation gain/loss
$
-
Fair value changes of net investment hedges $ 1,045.00
Effective portion of changes in fair value of
cash flow hedges -$ 45,221.00
$
-

Financial Statement Study 19
Net change in fair value of cash flow
hedges reclassified to profit or loss $ 45,294.00
$
2,618.00
Tax on items to be reclassified to profit or
loss
-$
2.00
-$
785.00
Total value of Items to be recycled to
profit or loss in further periods -$ 28,461.00
$
1,833.00
Total comprehensive income/loss -$ 25,998.00
$
1,833.00
The profit attributable to the shareholders would not be affected if the items of other
comprehensive statement are included in the income statement.
Part ix
Yes other comprehensive income must be considered while making the performance
evaluation of companies as it gives fair insights of significant transactions entered into by the
company apart from core business operations during the given period of time.
Part 4: Accounting for Corporate Income Tax
Part x
2017 Caltex Limited Whitehaven Coal
Tax Expense $ 242,694.00 $ 70,059.00
Part xi
Caltex Limited Whitehaven Coal
Tax Expense $ 242,694.00 $ 70,059.00
Profit before tax $ 863,446.00 $ 475,426.00
Effective Tax
Rate 28.11% 14.74%
Part xii
Deferred tax assets are those assets that are created to account for the excessive tax payments
made by the company on the basis of its calculation of federal taxation rules (Laux, 2013).

Financial Statement Study 20
When book profits are lower than the profits as per income tax and the difference in the
amount of taxed calculated under both the framework is not permanent, then DTAs are
created (Schrand and Wong, 2003). The DTA in case of Caltex are recognised under the
balance sheet liability approach. The reasons for the recognition of DTAs in respect of Caltex
are due to the variation in the carrying values of assets under financial approach and taxation
framework of Australia. . In case of Whitehaven, the DTA totalled to $ 356 million but out of
this balance $ 305.3 million were from the carried forward tax losses as well as tax credits.
In case of Caltex, out of $ 298,158000 $ 238,083000 is from the carried forward tax losses as
well as tax credits (Whitehaven, 2017).
Part xiii
There has been increase in the DTAs of Caltex Limited but in case of White haven Cao there
has been decrease in the DTA balance in 2017 as compared to 2016.
Increase/ Decrease in DTA
Caltex Limited Whitehaven Coal
Opening Balance $ 238,083.00 $ 103,573.00
Recognised in
income -$ 13,671.00 $ 1,298.00
Recognised in
equity -$ 1,058.00 -$ 785.00
Utilisation of
DTA on current
year losses -$ 148,029.00
Recognition of
losses $ 76,672.00
Acquired in
business
combination $ 20,719.00
Closing Balance $ 244,073.00 $ 32,729.00
Net
Increase/(Decreas
$ 5,990.00 -$ 70,844.00

Financial Statement Study 21
e)
Part xiv
Calculation of cash tax
Caltex Limited Whitehaven Coal
Book Tax $ 242,694.00 $ 70,059.00
Less: Increase in
DTA $ 5,990.00 -$ 69,597.00
Current income
taxes $ 236,704.00 $ 139,656.00
Add: Tax Shield
on Finance Cost $ 20,070.00 $ 14,985.90
Unlevered Cash
Taxes $ 256,774.00 $ 154,641.90
Part xv
Cash Tax Rate Calculation
Unlevered Cash
Taxes $ 256,774.00 $ 154,641.90
EBITA $ 930,497.00 $ 525,379.00
Cash Tax Rate 27.60% 29.43%
Note: Whitehaven has the higher cash tax rate in comparison to Caltex Limited.
Part xvi
Cash tax is the amount of tax paid by the company to the government on the basis of tax
provisions. However, book tax is the tax that is calculated on the basis of financial reporting
framework. The reason of deviation in the cash tax rate and book tax rate is due to the
different accounting treatment for the same items in different regulations i.e. accounting
regulations and taxation regulations (Guenther & Sansing, 2000).

Financial Statement Study 22
References:
AASB GOV. 2005. Available at:
https://www.aasb.gov.au/admin/file/content102/c3/Background_to_AASB_adoption_of_IAS
B_standards_by_2005.pdf Accessed on: 28.09.2018
Whitehaven Coal. 2015. Annual Report: 2015. Available at:
http://www.whitehavencoal.com.au/wp-content/uploads/2015/10/Annual-
Report_29Sep2015.pdf Accessed on: 29.09.2018
Whitehaven Coal. 2017. Annual Report: 2017. Available at:
http://www.whitehavencoal.com.au/wp-content/uploads/2017/09/WVN_223766_Annual-
Report-2017_FA4-web.pdf Accessed on: 29.09.2018
Caltex Australia. 2015. Annual Report: 2015. Available at: https://www.caltex.com.au/our-
company/investor-centre/annual-reports-and-reviews Accessed on: 29.09.2018
Caltex Australia. 2017. Annual Report: 2017. Available at: https://www.caltex.com.au/our-
company/investor-centre/annual-reports-and-reviews Accessed on: 29.09.2018
Bloomberg, 2018. Company Overview of Caltex Australia Limited. Available:
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=877088
Accessed on 220.9.2018.
Bloomberg, 2018. Company Overview of Whitehaven Coal Limited. Available:
https://www.bloomberg.com/research/stocks/private/snapshot.asp?
privcapId=23713877Accessed on 29.9.2018.

Financial Statement Study 23
Schrand, C.M. and Wong, M.F., 2003. Earnings management using the valuation allowance
for deferred tax assets under SFAS No. 109. Contemporary Accounting Research, 20(3),
pp.579-611.
Guenther, D.A. and Sansing, R.C., 2000. Valuation of the firm in the presence of temporary
book-tax differences: The role of deferred tax assets and liabilities. The Accounting
Review, 75(1), pp.1-12.
Laux, R.C., 2013. The association between deferred tax assets and liabilities and future tax
payments. The Accounting Review, 88(4), pp.1357-1383.