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HI5020 Corporate Accounting Assessment item 2 — Assignment Due date: 11.59pm Friday Week 10 Weighting: 20% Assessment task Select a public limited company listed on the Australian Securities Exchange...

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HI5020 Corporate Accounting
Assessment item 2 — Assignment
Due date: 11.59pm Friday Week 10
Weighting: 20%
Assessment task
Select a public limited company listed on the Australian Securities Exchange (ASX). Go to the
website of your company. Then go to the Investor Relations section of the website. This section
may be called, “Investors”, “Shareholder Information” or similar name.
In this section, go to your firm’s annual reports and save to your computer your firm’s latest
annual reports consecutively for last three years. For example, these may be dated 30 June 2016
or 31 March 2017. Do not use your firm’s interim financial statements or their concise financial
statements. Please read the financial statements (balance sheet, income statement, statement of
changes in owner’s equity, cash flow statement) very carefully. Also please read the relevant
footnotes of your firm’s financial statements carefully and include information from these
footnotes in your answer.
You need to do the following tasks:
CASH FLOWS STATEMENT
(i) From your firm’s financial statement, list each item of reported in the CASH FLOWS
STATEMENT and write your understanding of each item. Discuss any changes in each
item of CASH FLOWS STATEMENT for your firm over the past year articulating the
easons for the change.
(ii) Provide a comparative analysis of your company’s three
oad categories of cash flows
(operating activities, investing activities, financing activities) and make a comparative
evaluation for three years.
OTHER COMPREHENSIVE INCOME STATEMENT
(iii) What items have been reported in the other comprehensive income statement
(iv) Explain your understanding of each item reported in the other comprehensive income
statement
(v) Why these items have not been reported in Income Statement/Profit and Loss Statement

ACCOUNTING FOR CROPORATE INCOME TAX
(vi) What is your firm’s tax expense in its latest financial statements?

(vii) Is this figure the same as the company tax rate times your firm’s accounting
income? Explain why this is, or is not, the case for your firm.
(viii) Comment on defe
ed tax assets/liabilities that is reported in the balance sheet
articulating the possible reasons why they have been recorded.
(ix) Is there any cu
ent tax assets or income tax payable recorded by your company? Why
is the income tax payable not the same as income tax expense?
(x) Is the income tax expense shown in the income statement same as the income tax paid
shown in the cash flow statement? If not why is the difference?
(xi) What do you find interesting, confusing, surprising or difficult to understand about the
treatment of tax in your firm’s financial statements? What new insights, if any, have
you gained about how companies account for income tax as a result of examining
your firm’s tax expense in its accounts?
Please remember some aspects of your firm’s treatment of its tax –can be a very complicated
area, particularly for some firms.
PRESENTATION
You will have to do a presentation in the class where your lecturer will question you from
different angles of the assignment and you will have to satisfy the lecturer that you were
sufficiently and appropriately involved in preparing the assignment. The presentation will take
place in the last hour of the class of week 11 and week 12. It is the discretion of the lecturer to
ask any student to do the presentation or to award marks to a student without asking to do the
presentation. But every student need to be prepared for the presentation and well conversant
about everything that has been written in the submitted assignment.
Assessment marking criteria
(i) Doing the assignment on three years annual report for your company and doing
appropriate comparison
(ii) Insightful description of each item of your firm’s cash flows statement –
indicating a degree of understanding of what each item is
(iii)Insightful explanation of changes in each item of the cash flows statement
(iv) Insightful explanation of each item of Other Comprehensive Income Statement
(v) Clear description of your firm’s income tax expense
(vi) Insightful explanation of whether, and if so why, your firms’ income tax
expense differs from the corporate tax rate times the accounting income
(vii) Explanation of why the income tax expense shown in the income statement is
different from income tax shown in the cash flow statement
(viii) Understanding of defe
ed tax assets and defe
ed tax liabilities and
why they have changed over the previous year.
(ix) Convincing evidence (if needed, class by presentation) that the student was
sufficiently and appropriately involved in preparing the assignment.
Answered Same Day May 15, 2020 HI5020

Solution

Aarti J answered on May 19 2020
149 Votes
Qantas Airlines – Financial Analysis
Course Name
Course Date
Student’s Name
QANTAS – FINANCIAL ANALAYSIS        7
Qantas Airlines – Financial Analysis
Introduction
Qantas is one of the biggest and the second oldest airlines of Australia which has emphasized on positioning for sustainability and growth. The company was founded in the year 1920 and since then the company has been growing and has expanded its reach to the domestic as well as international markets. It is one of the strongest
ands of Australia and is the world’s leading long distance airlines. The company has successfully built its reputation by emphasizing on safety, customer service, operational reliability, maintenance and engineering.
In this report, we will analyse different aspects of the financial statements of the company, particularly focusing on the cash flow statements, comprehensive income and income tax.
Cash flow statement
Cash flow statement is the statement which tells about the cash inflows and outflows of the company which is classified in three major activities which includes: Cash flow from operating activities, cash flow from financing activities and cash flow from investing activities. The company uses the direct method to record the cash flow statements from operating activities. The cash flow from operating activities records all the cash inflows and outflows from the operating activities. Cash flow from investing activities records all the cash purchases and sale in the capital assets and the financing activities records all the cash inflows and outflows from the proceeds and repayments of debt, dividends and issue of shares.
Items of cash flows
The cash flow from operating activities records all the cash inflows and outflows from the operating activities. Cash flow from investing activities records all the cash purchases and sale in the capital assets and the financing activities records all the cash inflows and outflows from the proceeds and repayments of debt, dividends and issue of shares.
Cash flow from operating activities:
Cash receipts:
Cash receipts are the payment which the company has received from the sale of its tickets and other airline services.
Cash payment to suppliers and employees:
Cash payments which the company has done to its employees and vendors.
Interest received: Interest received is the cash received on the investment that is done by the company
Interest paid: The amount paid on the debt taken by the company.
Dividend received is the dividend received by the company on investments under equity method.
Income tax paid is the amount of income taxes that is paid by the company.
Cash flow from investing activities:
Payment for property, plant and equipment is the cash investment which the company has done to purchase the property, plant and equipment.
Interest paid and capitalise on qualifying assets: This includes the payment of the interest on the assets of the company.
Proceeds from disposal of the assets: This includes the cash received on the sale of the assets that was held by the company.
Cash flow from financing activities:
Payments for the buy back shares: The company has purchased its own shares against which the payment has been done.
Payments for treasury stock: When the company pays for purchasing its own shares.
Proceeds from bo
owings: The cash received from the loan taken by the company.
Repayment of the bo
owings: When the company repays the loan that has been taken by the company.
Dividends paid to the shareholders: This dividend paid to the shareholders of the company.
    Cash flows from operating activities
    2017
    2016
    2015
    
    
    
    
    CASH FLOWS FROM OPERATING ACTIVITIES
    Cash receipts from customers
    16947
    17320
    17239
    Cash payment to suppliers and employees
    -13982
    -14197
    -14747
    Cash generated from operations
    2965
    3123
    2492
    Cash payments to employees for redundancies and related costs
    -50
    -90
    -251
    Cash payments to employees...
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