Corporate Accounting: Financial Statement Analysis of Two Companies

This report presents a comprehensive analysis of the financial statements of two pharmaceutical companies, Adalta Limited and Acrux Limited. The analysis covers various aspects of the companies' financial positions, including the break-up of owners' equity, other comprehensive income statements, and cash flow statements. The report provides detailed comparisons between the two companies, examining their financial performance over specific periods. It also delves into the accounting treatment of corporate income tax, including deferred tax assets and liabilities, and the differences between effective and cash tax rates. Furthermore, the report highlights the significance of these financial statements in understanding the companies' overall financial health and performance. The analysis provides a clear understanding of the financial position of each company.

CORPORATE ACCOUNTING 1
CORPORATE
ACCOUNTING

CORPORATE ACCOUNTING 2
Executive summary:
The assignment sought to choose 2 companies and do analysis of the financial statements.
The companies chosen for review are Adalta Limited and Acrux Limited. Both of these
companies belong to the industry of Pharmaceuticals.
The report talks about the break-up of the equity of the company, its other comprehensive
statement, the statement of cash flows. The report further throws light on the comparison of
these two as well (ASX, 2018). The report further talks about the deferred tax assets or the
deferred tax liabilities of the company, the difference between the effective tax rate and the
cash tax rate along with the importance of these financial statements.

CORPORATE ACCOUNTING 3
Contents
Introduction:..........................................................................................................................................4
Owners’ equity:.....................................................................................................................................4
Part i:.................................................................................................................................................4
Part ii:................................................................................................................................................8
Cash flow statement:.............................................................................................................................9
Part iii:...............................................................................................................................................9
Part IV:............................................................................................................................................21
Part v:..............................................................................................................................................22
Other comprehensive income statement:.............................................................................................23
Part vi:.............................................................................................................................................23
Part vii:............................................................................................................................................26
Part viii:...........................................................................................................................................27
Part ix:.............................................................................................................................................27
Accounting for corporate income tax:.................................................................................................28
Part x:..............................................................................................................................................28
Part xi:.............................................................................................................................................28
Part xii:............................................................................................................................................29
Part xiii:...........................................................................................................................................29
Part xiv:...........................................................................................................................................29
Part xv:............................................................................................................................................30
Part xvi:...........................................................................................................................................31
References:......................................................................................................................................33

CORPORATE ACCOUNTING 4
Introduction:
The company chosen for review are Adalta Limited and Acrux Limited. Both of these
companies belong to the sector of Pharmaceuticals.
Adalta limited is the company deals in the technology that copies the shape and the stability
of the crucial antigen binding domain that was initially discovered in the sharks and then
were successfully developed as the human protein. It contains a unique I-body which is then
used for the purposes of treating the serious illnesses or the diseases. The initial focus of such
a company was the creation of the pipeline for the drugs, and were used for the purposes of
treating the fibrotic diseases (Adalta, 2018).
The seocn company is Acrux limited which is the company which is concerned with the
development and the commercialisation of the topical pharmaceuticals. The company came
into being in the year 1998 and uses many of the in house facilities and capabilities. The
company has successfully developed and commercialised through many of the licensees
through a number of different topically applied pharmaceuticals products in the countries of
the US and Europe. The company is in the course of developing an increased range of the
generic products for the market of the United States and the company had achieved this
through its on-site laboratories so that the products could be brought into the market at lower
prices (Acrux, 2018).
Owners’ equity:
Part i:
The following are the desired statements:
Adalta:

CORPORATE ACCOUNTING 5
Owner's equity:
(Amounts in
$ in millions)
Particula
rs
2017 2016 Understandin
g
Change Change in %
Issued
capital
175,60,338.0
0
81,5
0,331.
00
this is the
amount of the
money that
each
shareholder
has invested
in the
company
could be due
to new
capital/invest
ment by the
shareholders
115.46%
Reserves 3,908.0
0 3,908.
00
this is the
amount of
money that
the company
has put aside
fom the net
profits earned
in the
previous
years for
some
could be due
to addition of
previous
years profit
0.00%

CORPORATE ACCOUNTING 6
contingency
that may
arise in future
or for future
unforseen
circumstances
Retained
earnings
-
98,18,868.00
-
69,86,
351.00
these are the
part of the
profits earned
in the
previous
years after
paying off
dividend etc
could be due
to previous
year’s profits
being
transferred
in this
account
40.54%
Total 77,45,378.0
0
11,6
7,888.
00
Acrux:
Particulars 2017 2016 Understandi
ng
Change Cha
nge

CORPORATE ACCOUNTING 7
in %
Contributed
equity
95,
873.00
95,
873.00
this is the
amount of
the money
that each
shareholder
has invested
in the
company
could be due
to no change
in the new
capital/inves
tment by the
shareholders
0.00
%
Retained
earnings
1,
215.00
1,
454.00
these are the
part of the
profits
earned in
the previous
years after
paying off
dividend etc
could be due
to previous
years
profits/(losse
s) being
transferred
in this
account
-
16.44
%
Reserves -
53,163.00
-
53,438.00
this is the
amount of
money that
the company
has put
aside fom
the net
could be due
to addition
of previous
years
profit/(losses
)
-
0.51
%

CORPORATE ACCOUNTING 8
profits
earned in
the previous
years for
some
contingency
that may
arise in
future or for
future
unforseen
circumstanc
es
Total 43,
925.00
43,
889.00
Part ii:
The following is the desired analysis:
Adalta Acrux

CORPORATE ACCOUNTING 9
Particulars 2017 2017
Issued capital
17,560.3
4
95,873.0
0
Reserves 3 79/87
-
53,163.00
Retained earnings
-
9,818.87
1,215.0
0
- -
Total
7,745.3
8
43,925.0
0
Cash flow statement:
Part iii:
Adalta:
Cash flow statement:
(Amounts in
$ in millions)
Particulars 2017 2016 Unders
tanding
Change in %

CORPORATE ACCOUNTING 10
Cash flows from operating
activities:
Payments to suppliers and
employees
-
46,32,076.00
-
20,61,6
56.00
these
are the
amount
s that
are
paid to
the
supplie
rs and
the
employ
ees for
the
services
that
they
have
rendere
124.68%

CORPORATE ACCOUNTING 11
d
R & D tax incentive 7,38,046.0
0
8,
78,394.
00
amount
s
receive
d by
the
compan
y
toward
s
researc
h and
develop
ment
-15.98%
Interest received 1,47,483.0
0 8,902.0
0
Amoun
ts
receive
d from
the
compan
y
toward
s the
loan
given to
1556.74%

CORPORATE ACCOUNTING 12
the
outside
rs
Grants received 19,724.0
0 -
amount
s
receive
d by
the
compan
y
toward
s grants
#DIV/0!
Net cash provided by
operating activities
-
37,26,823.00
-
11,74,3
60.00
Cash flows from investing
activities:
Proceeds from disposal of
property, plant and
equipment
1,000.0
0 -
these
are the
amount
s that
the
#DIV/0!