HI 5020 Corporate Accounting: Financial Statement & Ratio Analysis

This report provides a comprehensive financial analysis of three ASX-listed companies: Australian Dairy Nutritional Group, Clean Seafood, and Australian Agricultural Company Limited. It examines equity and liability components, highlighting changes over three years and their underlying reasons. The analysis includes retained surplus, share capital, reserves, and accumulated losses. Furthermore, the report delves into cash flow statements, focusing on key elements like interest received and proceeds from the sale of plant and equipment. Comparative analysis of debt, liabilities, and equity across the three companies is also presented, offering insights into their financial health and capital structure. The report concludes with an overview of other comprehensive income statements, providing a holistic view of the financial performance of these companies. Desklib provides solved assignments and past papers for students.

HI 5020 CORPORATE ACCOUNTING

Executive Summary
The following report has provided enough information regarding the preparation of equity and
liability, cash flow statement and Accounting for corporate income tax. The following report is
quite informative in terms of having three period evaluation of Corporate Income Tax evaluation
and calculation process. It also have provided information about performance evaluation for
managers in companies that clearly suggest the requirement for activating in the shareholder
fund for the companies provided and collected
1

Table of contents
Introduction......................................................................................................................................3
Equity & liability.............................................................................................................................3
Cash flows statement.....................................................................................................................12
Other comprehensive income statement........................................................................................23
Conclusion.....................................................................................................................................31
List of references...........................................................................................................................32
2

Introduction
Accounting is one of the most significant ways through which one can define the performance of
a company and can know about financial aspects about the company in an evident manner. In
this project financial valuation of three ASX listed companies will be done which is Australian
dairy nutritional group, clean seafood and Australian agricultural company limited all of these
companies belong from food, beverage and tobacco industry and are publically lost in the ASX.
In this project, there will discussion over different financial aspects of the following companies
to evaluate the company’s financial performance and compare the three companies financially.
Equity & liability
Listing each item of equity reported and discussing any changes in each item of equity for
the firm’s over last three years articulating the reasons for the change
Australian dairy nutritional group
Figure 1: Statement of changes in Equity
(Source: Dairy Australia, 2019)
Retained Surplus: Retained surplus or retained earning is the amount of profit which is left after
the accounting for dividend payments is done. There is some amount of dividend which is kept
in order for further operations of the company. Hence through the Statement of equity changes of
the company the value of retained surplus in FY 2016 was 26358, at FY 2017 was 25,984 and in
3

FY 2018 was recorded at 29,710. The amount has been floating as because the company’s
income would have differed in the following years.
Available for sales reserve: This is reserve which is kept for the sales of the company. The
reserve was amounted at 74 in FY 2016, in FY 2017 399 and in FY 2018 311 which means the
company increased their verses as to cover the increasing risk of credit sales (Ni & Van Wart,
2015).
Clean seafood
Figure 2: Statement of changes in Equity
(Source: Seas, 2019)
Share capital: Share capital is amount capital which company collect through general and
equity share which issue in stock market. The balance of this element in 2016 was valued at
157,736, in FY 2017 165,998 and in FY 2018 182,345 which has increased due to increase in
investment for the company.
Share Rights reserve: Reserves are kept for share right which are preserve by equity
shareholders and has been recorded as null in 2016, 172 in 2017 and 661 in 2018 which the
company increased rights reserv in a drastic way to give security of the invested amount.
Accumulated loss: Accumulated loss is loss which has accumulated from the day when the
company started operating it can be seen that value of this in 2016 was 114,819 whereas in 2017
it was valued at 114617 and in 2018 111,237.
Australian agricultural company limited
4

Figure 3: Statement of changes in Equity
(Source: AACo, 2019 )
Contributed equity: Contributed equity is the equity is has be contributed in forme of equity
shares from the company's investor. The balance of the following as on 2016 was 461,213
whereas in FY 2017 it was valued at 490,713 and in FY 2018 the value was 531,937 which mean
the share investment within the company has increased (Atanasov & Black, 2016).
Reserve: Reserve is created by a company in order make sure there evident amount of monetary
reserve for future incident the value in 2016, 2017 and 2018 were 366,085, 396,606 and 417,718
respectively.
Retained earnings: Retained earning is earning retained by the company for future purposes in
FY 2016 the value 58,838, in 2017 the value was 130,424 and in 2018 the amount was 27,865.
Listing each item of liability reported and Discussing any changes in each item of liability
for your firm's over last three years articulating the reasons for the change
Australian dairy nutritional group
Liabilities 2016 2017 2018
5

Current liabilities
Trade and other payables 10240 11310 13861
Provisions 2451 2650 2568
Non-current liabilities
Provisions 654 790 538
Total non-current
liabilities
13345 14750 16967
Table 1: Liabilities
(Source: Self generated )
The company has trade payables which mean it has payables which are yet to be paid a and there
are Short term provisions the company has to meet. The value of trade payable in year 2016,
2017 and 2018 are 10240, 11310, 13861 respectively whereas the provision is 2451, 2650, 2568.
The trade payables have been fluctuating which can be due to its operations. The company also
has long term provisions which have been 654, 790, 538 in year 2016, 2017, 2018. The long term
borrowing have increased in the company because the company has increased debenture
holdings and have taken pledge to grow their business (Liu, Li, Zeng & An, 2017).
Clean seafood
Liabilities 2016 2017 2018
6

Current
Trade and other payables 3101 4083 6504
Borrowings 3063 330 622
Provisions 545 726 862
Current liabilities 6709 5139 7988
Non-current
Borrowings 68 832 1727
Provisions 189 132 178
Non-current liabilities 257 964 1905
TOTAL LIABILITIES 6966 6103 9893
7

Table 2: Liabilities
(Source: Self generated )
The current liabilities which the company has is Trade Payables, borrowings and provisions.
Borrowings is the amount which is borrowed by the company on a short term basis. The trade
payable values of the company in the there has been 3101, 4083 and 6504. Under non current
liabilities section the company has Borrowings and pro wings the borrowings are on long term
basis and values of the following in the last three years is 68, 832, 1727.
Australian agricultural company limited
Current Liabilities 2016 2017 2018
Trade and other payables 32775 31242 27525
Provisions 3715 3727 3445
Borrowings 4176 3691 3025
Derivatives 8892 6186 457
Total Current Liabilities 49558 44846 34452
Non-Current Liabilities
8

Provisions 1798 1977 5215
Borrowings 365194 362918 353363
Deferred tax liabilities 80433 118171 84747
Total Non-Current
Liabilities
447425 483066 443325
Total Liabilities 496983 527912 477777
Table 3: Liabilities
(Source: Self generated )
The components of short term or current liabilities of the firm were trade payables, provisions,
borrowings and derivatives the current liabilities value of the firm in last years has bee as follows
49558, 44846 and 34452. The current liability of the company has decreased this mean the
company has used their monetary funds instead of short term liabilities to operate in a significant
manner. The Non current assets of the company Comprise of provision, borrowing and deferred
tax liabilities. The non current liabilities of the company has decreased in the recent years as the
value in three has been 447425, 483066 and 443325 (Caskey & Laux, 2016).
Comparative analysis
Debt or liability comparison
Comparing the total liability of the
companies
2016 2017 2018
9

Australian dairy nutritional group 13345 14750 16967
Clean seafood 6966 6103 9893
Australian agricultural company limited 496983 527912 477777
Table 4: Comparing the total liability of the companies
(Source: Self generated )
Figure 4: Graph showing comparing the total liability of the companies
(Source: Self generated)
Equity Comparison
Comparing the total equity of the
companies
2016 2017 2018
10

Australian dairy nutritional group 26284 25585 29399
Clean seafood
42917 51553 71769
Australian agricultural company limited
886136 1017743 977520
Table 5: Comparing the total equity of the companies
(Source: Self generated )
11