Corporate Accounting Analysis of Qantas and Sydney Airport (HI5020)

This report presents a comprehensive analysis of the financial performance of two Australian Securities Exchange (ASX) listed companies: Qantas and Sydney Airport, both operating within the airline industry. The report delves into the companies' financial positions by examining their cash flow statements, owners' equity, and statements of comprehensive income. It includes detailed breakdowns of key financial metrics such as issued capital, retained earnings, cash receipts, and payments. The analysis compares the financial data of both companies for the years 2017 and 2018, providing insights into changes and trends. The report aims to offer a clear understanding of the financial health and operational performance of Qantas and Sydney Airport. This document is available on Desklib, a platform providing students with study resources, including past papers and solved assignments.

CORPORATE ACCOUNTING 1
CORPORATE ACCOUNTING

CORPORATE ACCOUNTING 2
Executive summary:
This report has been prepared on 2 companies, Qantas and Sydney airport. Both of which
belong to the Airline business. This report aims at discussing the cash flow position of the 2
companies along with a discussion on their equity status and the statement of comprehensive
income.

CORPORATE ACCOUNTING 3
Contents
Introduction:...............................................................................................................................3
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:.................................................................................22
Part vi:..................................................................................................................................22
Part vii:.................................................................................................................................26
Part viii:................................................................................................................................26
Part ix:..................................................................................................................................27
Accounting for corporate income tax:......................................................................................27
Part x:....................................................................................................................................27
Part xi:..................................................................................................................................27
Part xii:.................................................................................................................................28
Part xiii:................................................................................................................................28
Part xiv:................................................................................................................................28
Part xv:..................................................................................................................................28

CORPORATE ACCOUNTING 4
Part xvi:................................................................................................................................29
References:...........................................................................................................................31
Introduction:
The first company undertaken for review is Qantas which is the largest domestic and the
international airline in the country of Australia. The company has the reputation of excellence
when it comes to safety, reliability of its operations, engineering and maintenance along with
the customer services (Qantas, 2019).
The second company is Sydney Airport which is a publicly listed Australian company that
has the 100% interest in the Sydney Airport (Sydney airport, 2019).
Owners’ equity:
Part i:
The following are the desired statements:
Qantas:
Qantas
Owner's equity:
(Amounts in $ in millions)
Particulars 2018 2017
Understandin
g Change
Change
in %
Issued capital 2,508.0
0
3,259.0
0
this is the
capital or the
number of
the
change
could be
-23.04%

CORPORATE ACCOUNTING 5
shares that
have been
issued to the
outsiders or
this is the
capital
invested into
the business by
the outsiders
due to
buy
back of
the
shares
by the
compan
y
Treasury
shares
-
115.00
-
206.00
these are again
the invested
capital into the
company
the
change
could be
due to
buy
back of
the
shares
by the
compan
y -44.17%
Reserves 479.0
0
12.0
0
this is the sum
total of all of
the amounts
that have been
kept aside all
the
change
could be
due to
the
3891.67
%

CORPORATE ACCOUNTING 6
these years.
These are kept
by the
company for
expansion
purposes,
growth etc
addition
in the
amount
of the
net
profits
or the
reserves
Retained
earnings
1,084.0
0
472.0
0
these are the
past earnings
that have been
kept aside
from the
revenue earned
by the
company
this
could be
due to
the
addition
in the
amounts
of the
profits
earned
in the
previous
year 129.66%
Non-
controlling
interests
3.0
0
3.0
0
this is the
amount that
are beyond the
control of the
no
change 0.00%

CORPORATE ACCOUNTING 7
company
Total equity
3,959.0
0
3,540.0
0
Total
liabilities
14,688.0
0
13,681.0
0
Sydney Airport:
(Amounts in $ in millions)
Particulars 2018 2017
Understan
ding Change
Chan
ge in
%
Contributed equity 5,5
08.60
5,4
82.30
this is the
capital or
the number
of shares
that have
been issued
to the
The
change
could be
due to
new
shares
that have
0.48
%

CORPORATE ACCOUNTING 8
outsiders or
this is the
capital
invested
into the
business by
the
outsiders
been
issued by
the
company
Retained earnings -
1,954.80
-
1,481.40
these are
the past
earnings
that have
been kept
aside from
the revenue
earned by
the
company
These are
the past
earnings
that have
been kept
aside
from the
revenue
earned by
the
company.
The
figures
represent
a loss
which
means
31.96
%

CORPORATE ACCOUNTING 9
that the
company
has been
earning
losses
Reserves
-
3,473.50
-
3,360.10
this is the
sum total of
all of the
amounts
that have
been kept
aside all
these years.
These are
kept by the
company
for
expansion
purposes,
growth etc
the
change
could be
due to
the
addition
in the
amount
of the net
profits or
the
reserves
3.37
%
Non-controlling
interests
-
8.40 -6.90
this is the
amount that
are beyond
the control
of the
the
change
could be
due to
increase
21.74
%

CORPORATE ACCOUNTING 10
company
in the
shares
being
issued by
the
company
to the
sharehold
ers
beyond
the
control of
the
company

CORPORATE ACCOUNTING 11
Total 71.90
6
33.90
Total Liabilities
12,9
82.30
11,6
89.20
(Annual report 2018, 2016-Sydney airport)
(Annual report 2018, 2016-Qantas )
Part ii:
The following is the desired analysis:
Qantas
Sydney
Airport
Particulars 2018 2018
Issued capital
2,508.0 5,508.6

CORPORATE ACCOUNTING 12
0 0
Treasury shares
-
115.00
Reserves
479.0
0
-
3,473.50
Retained earnings
1,084.0
0
-
1,954.80
Non-controlling
interests
3.0
0
-
8.40
Total
3,959.0
0
71.9
0
Liabilities
14,688.0
0
12,982.3
0
The above table shows that Qantas has lesser amount of issued capital when compared with
Sydney Airport. It further shows the following:
Qantas has lesser reserves when compared with Sydney Airport
Qantas has negative amount of treasury shares when compared with Sydney Airport
Qantas has more amount of retained earnings when compared with Sydney Airport
Qantas has more amount of non-controlling interests when compared with Sydney Airport
Cash flow statement:
Part iii:
Qantas: