Analysis of PTM's Corporate Accounting and Financial Statements

This report provides a comprehensive analysis of Platinum Asset Management Limited's (PTM) corporate accounting, focusing on the changes in equity, tax expenses, and after-tax income based on the company's annual reports. The analysis includes a detailed examination of equity components, the latest tax expenses, and the after-tax income for the years 2016 and 2017. Furthermore, the report identifies the presence of deferred tax payments in assets and liabilities, and the current tax assets of PTM, with a discussion on the variations in income tax expense and payable. It also explores the differences between income tax expenses in the cash flow statement and income statement. The report concludes with an analysis of PTM's tax treatment, offering insights into the company's financial performance and tax strategies. The report uses data from the 2016 and 2017 annual reports to support its findings.

Corporate Accounting
Platinum Asset Management
Limited (PTM)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1 Discussion based on each item of equity as per the changes in the equity.........................2
2. The Latest tax expenses of PTM in the current annual report...........................................5
3. Analysing the after-tax income of PTM on the basis of current annual report..................6
4. Presence of deferred tax payment in assets and liabilities...............................................10
5. Identifying the current tax assets of PTM as well as discussion based on variations in the
amount of income tax expense and income tax payable......................................................13
6. Analysing the difference of income tax expenses in cash flow statement and income
statement in the current annual report of PTM.....................................................................14
7. Analysing the tax treatment of PTM................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
The relevance of corporate accounting is to analyse the financial statement and making
suitable decisions which will help in enhancing the profitability as well as efficiency of the firm.
In the present report, there will be analysis of the financial statement of Platinum Asset
Management Ltd. There will be discussion over the changes in equity, income statement, balance
sheet as well as cash flow statements of the current disclosure. The report will be helpful in terms
of facilitating adequate commentary over such data set.
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1 Discussion based on each item of equity as per the changes in the equity
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On the basis of above statement of change in equity, it is helpful in analysing appropriate
changes in the equity as per current year and previous year changes. In accordance with 2015
carry forward balance for equity, it was 199448 as total equity. In 2016, there has been negative
balance of reserves such as -422 incurred, the retained profit for 200887 and the noin controlling
interest of -1017. There has been issue of new shares capital which are amounted to -3638 with
the reserves of 672 and have the retained loss of 211204 as per the payment of dividends were
made (Klinsky and et.al., 2017). The non controlling interest of the period was 29753 and
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Therefore, it presents the total equity of 364211. Further, the balance of Issued capital for 2016 is
747717,reveres were -587764, retained earning is for 175522, non controlling interest for 28736
were carried forwarded to the next year.
Therefore, in accordance with brought down balance of equity for 2016 in 2017, the firm
has gained profit after making the payment of tax which is 186026. It will be profitable for the
firm in terms of having adequate revenue and they will become able to make payments to their
shareholders (Annual Report, 2017). There has been non-controlling interest of 6621, the
exchange rate transaction subsidiaries of reserves as -595. The reverse of de-consolidation of
platinum world portfolios plc was amounted to 1001 were recorded (Reckien and et.al., 2017).
The treasury share acquired amounted to -4784, reserves of share-based payments is for 1540
and the total dividends were paid as -181687 which were out of the retained earnings made by
firm during the period. Therefore, the total balance for 2017 over the change in equity was
742933 as issued share capital, -585818 as reserves, 177959 as retained profits and 335074 as
total equity of the firm.
2. The Latest tax expenses of PTM in the current annual report
In consideration with the payment of tax made by firm in the year 2016, it was 81,922
while in the current year the payment of 80686 over the income generated in the period. Thus, it
can be said that in the current year, the business is having favourable growth as they are having
adequate capital structure such as revenue collection for the operational activities (Heckemeyer
and Overesch, 2017). The firm is also having good income as the costs of application in
operations is quite lower than the previous period as well as the revenue generation is quite
satisfactory in this year.
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3. Analysing the after-tax income of PTM on the basis of current annual report
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The after-tax income gained by the firm will be known as the amount which is actually
left after making all the operational expenses, interest, and tax payments. Thus, in the year 2016,
Platinum Assets Management as gained losses form such operational expense and they were able
to make payment to the shareholders. Therefore, in 2017, the firm has made gains even after
paying off the operational expense (Gauthier and Laroque, 2017). The revenue which had
generated by them after paying the company tax is 192647. Therefore, it indicates the
profitability of firm and which will be payable to the shareholders in the form of dividends. The
shareholders and investors seek profitability of an entity which will benefit them in terms of
dividends of bonus payments. So, it can be said that if the firm is having adequate revenue
generation, then it will be fruitful for them in terms of attracting large numbers of investors and
having strong capital structure.
On the other side, it can be said that in the current year, there has been profitable gains
from the business operations which has risen the market value of the entity. The effects have
been seen as per the increment in the share price of the firm such as 31.74 is the current earning
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per share while it was 34.24 in 2016. Thus, if the firm will have new shareholders, then they will
have appropriate capital gathering as well as proper operational activities in the continuation.
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4. Presence of deferred tax payment in assets and liabilities
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