本文是留学生assignment范例，题目是“Corporate Accounting Plan: Evolution, Merits and Demerits of Fund Sources（企业会计计划:资金来源的演变、优缺点）”，公司会计的目的是向利益相关者传达公司的资产和负债。它有助于在高端产品上提供一整套会计和财务功能的服务，从而推动企业间的价值最大化。本报告旨在讨论Caltex Australia Limited和Woolworths Group使用的不同基金来源及其演变、优缺点。
Corporate accounting aims to communicate about a firm’s assets and liabilities to the stakeholders. It helps in offering a full suite of services for accounting and finance functions on the higher-end offerings, which drives maximum value across enterprises. This report aims to discuss different fund sources and its evolution, merits, and demerits of various fund sources used by Caltex Australia Limited and Woolworths Group.
Further, a discussion will be on AASB 137, its reference to the company, categories of assets recorded, and the measurement basis used by both the companies. This report concludes that both companies have opted for equity and debt as their fund sources. They have not made any reference to AASB 137, however, fulfilled most of the conditions of this accounting standard.
此外，我们还将讨论AASB 137，它对公司的引用，记录的资产类别，以及两家公司使用的计量基础。这份报告的结论是，这两家公司都选择了股权和债务作为它们的资金来源。他们没有提到AASB 137，但满足了该会计准则的大部分条件。
Corporate accounting is a special branch of accounting, which is dedicated to the preparation of the company’s final accounts, their interpretation, and analysis as well as accounting for special events such as preparation of consolidated balance sheets. The activity of corporate accounting is performed normally for ascertaining the operational and financial status of the company. Corporate accounting makes sure the company’s financial activities comply with regulations and laws stipulated by the oversight bodies.
It helps in confirming that activities of the business are in tune with the policies of the organization (Avdjiev, Chui and Shin 2014).
This report aims to identify various sources of the fund generated by two companies, Caltex Australia Limited and Woolworths Group and provide an insight into the evolution of these funds. Further, a discussion will be made on the percentage of internally and externally generated fund sources, merits and shortcomings of each fund source and the different types of liabilities shown in selected companies. Moreover, an examination of key provisions under AASB 137 and its reference to the select companies will be made.
Lastly, identification and examination of different asset categories and the measurement basis used by the companies for each asset class will be discussed in detail.
2.Caltex Australia Limited Caltex 澳大利亚有限公司
Caltex Australia Limited is the Australian convenience retailer and transport fuel supplier company. It is engaged in purchasing, refining, marketing and distributing petroleum products in the Australian market. The products consist of motor oil, petroleum, diesel fuel, lubricants, and jet fuel. The company also operates service stations, fast food stores, and convenience stores. Caltex Australia Limited is a locally-owned publicly listed entity that derives revenue from wholesale, refinement and petroleum retail.
Caltex Australia Limited是澳大利亚的便利零售商和运输燃料供应商。该公司在澳大利亚市场从事石油产品的采购、提炼、销售和分销。这些产品包括机油、石油、柴油、润滑油和喷气燃料。该公司还经营服务站、快餐店和便利店。Caltex Australia Limited是一家本地所有的公开上市实体，收入来自批发、提炼和石油零售。
It employs approx. 6,600 employees that operate in Singapore, Australia, and New Zealand and are administered from Sydney head office (Caltex. 2020).
3.Woolworths Group Limited沃尔沃斯集团有限公司
Woolworths Group is one of the biggest listed companies in Australia which is majorly based upon retail operations. The company engages in operating general merchandise supermarkets and consumer goods as well as the procurement of liquor and food items. It also has its footprint in the hotel industry consisting of pubs, gaming operations and accommodations. Woolworths Group serves its customers in the countries of Australia and New Zealand (Woolworthsgroup.com.au. 2020).
The sources of fund (based on time) can be short term, medium term and long term with the help of which an entity raises its working capital, shares and bond capital, and long-term capital respectively. The entity can select any fund sources depending upon requirement and gestation period of project that must be financed. Business organization often require capital funding or external funding in order to expand their business into the new locations and markets as well as investing in the research & development for fending off competition (Muritala 2018).
The company raises funds either by using debt or by the equity. Equity is the cash paid into business, either own cash of owner or the cash contributed by one or more than one investor. The investments of equity are certified by issuing the shares in entity. The issuing of shares is in direct proportional to investment amount. Further, fund obtained by incurring debt is second major funding source. This is borrowed from lender at the fixed interest rate and with the predetermined date of maturity. The principal amount is required to be paid back in full by fixed stipulated date, however, periodic repayments of the principal can be part of loan arrangement (Mahdaleta 2016).
5.Evolution of the Fund Sources基金来源的演变
The evolution of the sources of the fund is done by the entity for their need to raise external sources of funds, investment in the research and development, capital funding for the expansion or fending off the competition. The entities require to raise funds at a certain point in time for the development of products as well as expansion in the new markets.
In the case of Caltex Australia Limited, the uses of long-term debt have been increased over the years. The long-term debt was $990,063 in 2016(reference: consolidated Balance Sheet 2016, Total non-current liabilities), which reduced to $888,650 in 2017 and again it increased to $1,144,365 in 2018. Moreover, the equity of the company has been increased over the years. The total equity of company was $2,810,215 in 2016 that increased to $3,107,901 in 2017 and again it increased to $3,389,064.
In the case of Woolworths Group, the long-term debt has decreased then increased across the three years period. The long-term debt of the company was $4,215m in 2017 that reduced to $3,513m in 2018 and then it increased to $4,202m in 2019. Further, the equity of the company has been increased then decreased across three years. The total equity of the company was $9,876m in 2017 that increased to $10,849m in 2018 and lastly it reduced to $10,669 in 2019.
6.Percentage of Internally and Externally Generated Funds内部和外部产生资金的百分比
The funds of the company can be generated either internally or externally. The funds generated internally are realized by the company’s efforts or by operations. These are the funds that are not borrowed or realized by other external means. Equity financing is one of the most popular financing models because capital is generated internally by the business. Moreover, entities try to obtain external financing sources when they are not able to finance the expenditure with money generated from operations (Vătavu 2015).
The percentage of internally generated funds of Caltex Australia Limited is 64% in 2016, 71% in 2017 and 66% in 2018. Further, the percentage of externally generated funds of Caltex Australia Limited is 36% in 2016, 29% in 2017 and 34% in 2018 (Caltex. 2020). In addition, the percentage of internally generated funds of the Woolworths Group is 57% in 2017, 68% in 2018 and 61% in 2019. Moreover, the percentage of externally generated funds of Woolworths Group is 43% in 2017, 32% in 2018 and 39% in 2019 (Woolworthsgroup.com.au. 2020).
It can be stated from the analysis that both entities are using debit and equity as their funding sources. Moreover, the long-term debt and equity of Caltex Australia Limited has increased over the years. In the case of Woolworths Group, the long-term debt of the company has reduced initially, however, it has increased in the later years. The equity of the company has increased initially but then reduced in the later years.
Further, the percentage of internally generated funds is 64%, 71% and 66% from 2016-2018 and the percentage of externally generated funds is 36%, 29% and 34% from 2016-2018. In addition, the percentage of internally generated funds is 57%, 68% and 61% from 2017-2019 and the percentage of externally generated funds is 43%, 32% and 39% from 2017-2019. Further, it has been discussed that both the debt and equity fund sources have their own merits and shortcomings.
In addition, different assets and liabilities categories, as well as AASB 137 provisions, have been discussed. Both companies have not referred to this accounting standard, but they have fulfilled certain conditions of the standard. The assets class of both companies includes short and long-term assets. Lastly, a rigorous discussion has been made regarding the measurement basis for each of the assets class used by both the companies.