In-depth Financial Analysis Report of Moelis Australia Company

This report provides a financial analysis of Moelis Australia, focusing on their consolidated balance sheet as of December 31, 2016, revenue recognition, lease payments, and taxation. The analysis interprets the financial information based on previous costs and fair value measurements. It covers current and deferred tax implications, plant, property, and equipment considerations, and the recognition of revenue based on transaction completion. The report concludes with an overview of fair value measurement categorization and the computation of gains or losses on asset disposals, referencing key accounting principles and research.

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MOELIS AUSTRALIA
COMPANY
Executive summary
Moelis Australia was mandated to offer financial service
and operates as advisory agent to corporates and Equities,
furthermore it also manages assets. The role of corporate
advisory was to provide advice to corporate and services to
capital market, while the role of Equities was to provide
research, execute trading services and facilitate all
transaction involving equity capital market.
Asset management involves providing assets opportunities
and services on investment management to investors.
Moelis Australia has employed 81 staffs and its operation
offices are located in Melbourne and Sydney. The company
was established and fostered on the entire global strategic
coalition between Moelis and company and Moelis
Australia with an idea of offering unprejudiced quality
advice to the clients.
Moelis Australia provides to its client a lasting relationship
through establishing an innovative and strategic advice of a
high collaboration and global approach which not limited to
any region or specific product. It also operates under
cultural partnership style, where its excellent commitment
and momentum have created attractive environment and
retention of quality talent.
Moelis Australia has been working to attain its global
vision standards that aim at nurturing cultural partnership,
hardworking, optimism and innovation that inspires a high
integrity and quality interaction with the clients.
Moelis Australia is amongst the existing ASX business
participants with its core establishment on provision of
Equity division to offer trading securities and institutions
equity research as well as services on equity capital market.
Analysis
BREAKDOWN OF CONSOLIDATED BALANCE SHEET AS AT 31ST DECEMBER 2016
Particulars Amount (Australia dollar)
Total current asset $72,600,000
Total non- current assets $10,700,000
Total current liability $23,200,000
Total no – current liability $900,000
Total equity $59,100,000
Interpretation
The prospectus financial information presented has been
prepared base on the previous cost at the end of the report
period.
The fair value are measured or disclosed in this financial
consolidated statement by considering liability or asset, this
is taken into account while pricing the liability and assets at
the stated date.

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Revenue recognition
The recognition revenue was determined based on
completion of the transaction at the end of the report period
where the results from the contract can be reliably
estimated. Completion stage was referenced to services
provided and performed as a total percentage of expected
services (Schipper, Schrand, Shevlin and Wilks, 2009).
Lease payment
The payment under lease payment is recognized in loss or
profit over the lease term. In an occasion where lease
received enters a state of operating lease the incentive was
taken as a liability. The total benefits of these incentives
are considered as rental expenses (Norton and Barton,
2009).
Taxation
Moelis Australia was subjected to income tax. Deferred tax
and consolidated entity were allocated to all the members
of this group through approach and separate tax. Allocation
of deferred tax was based on financial statement of every
member’s tax value and member’s entity (Mankiw,
Weinzierl and Yagan, 2009).
Current tax
Current tax was based on taxable profit. Profit and taxable
profit were totally different as stated on the consolidated
statement because of items of expenses and income that
were deducted or taxed in a particular year. Moelis
Australia current tax liability were calculated using enacted
tax rates at the end report period (Desai and Dharmapala,
2009).
Deferred Tax
This was a temporary difference between liabilities and
assets in Moelis Australia consolidated financial statement
and conforming tax that was used in computation of taxable
profit (Frank, Lynch and Rego, 2009).
Current and deferred tax for the year
Deferred and current taxes were recognized as either loss or
profit, except if they were recognized directly in equity.
The taxes were involved in the accounting if the deferred
tax and current tax were retrieved from initial accounting.
Plant, property and equipment
Plant, properties and equipment were considered as
depreciated accumulated less cost and accumulated losses.
Provisions
The amount that Moelis Australia recognize as provision
was estimated as the best considerations that would be
required to solve the present obligation at the end of the
financial report, while considering the uncertainties and
risks that surrounds this obligation.
Conclusion
In conclusion, measurement of fair value in Moelis
Australia financial report was categorized into three
degrees, which involved observing fair values inputs and its
significance in totality. The first degree involve a
procedural quotation of price in active market, the second
degree dealt with observing the quoted price, the third
degree dealt with unobservable inputs for both the liability
and assets.
The loss and gains on retirement or disposal of property
items, equipment and plant were computed as the
difference between amount of assets and sale proceeds and
was considered as either loss or profit.
References
Desai, M.A. and Dharmapala, D., 2009. Corporate tax
avoidance and firm value. The review of Economics and
Statistics, 91(3), pp.537-546.
Frank, M.M., Lynch, L.J. and Rego, S.O., 2009. Tax
reporting aggressiveness and its relation to aggressive
financial reporting. The Accounting Review, 84(2), pp.467-
496.
Mankiw, N.G., Weinzierl, M. and Yagan, D., 2009.
Optimal taxation in theory and practice. Journal of
Economic Perspectives, 23(4), pp.147-74.
Schipper, K.A., Schrand, C.M., Shevlin, T. and Wilks, T.J.,
2009. Reconsidering revenue recognition. Accounting
Horizons, 23(1), pp.55-68.
Norton, P.G. and Barton, M.I., ePlus Inc, 2009. Hosted
asset information management system and method. U.S.
Patent 7,552,134.

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