Wesfarmers Limited accounting report

Document Type:Coursework

Subject Area:Accounting

Document 1

The company was listed on ASX in 1984 and successfully developed to a big retail conglomerate. The company received AU$65. 98 billion in the 2016 financial year, it is the largest Australian company by revenue. Wesfarmers is the largest private employer in Australia, with approximately 220,000 employees. The companies have shown great improvement since it was established and excellent performance. Cash generated from financing activities. Inflows and outflows resulting from debt issuance and financing, the issuance of any new stock, dividend payments, and any repurchase of existing stock. A number of surplus bank facilities were cancelled during the year, resulting in a net reduction to available facilities of approximately $950 million. The remaining bank facilities that matured during the financial year were renewed and extended for periods ranging from one to three years.

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Borrowings - Repayments In November 2016, Australian bonds totalling $500 million matured. Other comprehensive income/(loss) for the year. Total comprehensive income for the year, net of tax, attributable to members of the parent. The two-statement approach leaves the income statement in its current form and adds a new statement of comprehensive income. This format further allows financial statement users and management to focus on and discuss (1) the current performance as summarized in net income and (2) the OCI in order to assess a Wesfarmer actual liquidity and future cash flow requirements. The components of other comprehensive income present valuable information about a company’s potential future net income and cash flows from transactions generally to be finalized sometime in the future. Where taxable temporary differences relate to investments in subsidiaries, associates and interests in joint ventures: Deferred tax liabilities are not recognized if the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

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Deferred tax assets are not recognized if it is not probable that the temporary differences will reverse in the foreseeable future and taxable profit will not be available to utilize the temporary differences. Deferred tax liabilities are also not recognized on recognition of goodwill. Income taxes relating to items recognized directly in equity are recognised in equity and not in the income statement. Offsetting deferred tax balances. In the year 2927 Wes farmer company tax expense was $US1265M while the tax payable was $US951M refers to the come tax expense shown in the income statement same as the income tax shown in the cash flow statement it differs because Income tax payable is a short-term debt a business must honour within 12 months or earlier, depending on the agreement the organization signed with fiscal authorities.

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As a current liability -- or short-term debt -- the payable flows through a statement of financial position, also referred to as a balance sheet or report on financial condition. Income tax payable connects with a statement of cash flows although both items are distinct. When a company sends a check to the taxman, a corporate bookkeeper debits the income tax payable account and credits the cash account. This entry makes it into the "cash flows from operating activities" section of a statement of cash flows. I have learned and understood how companies account for income tax as a result of examining the finance status of the company. In conclusion Wes farmer company has a good managing team that follow every matter concerning the company and as the best accounting team which follows all the accounting rules and they are professional hence the smooth flow of activities in the company.

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