Company name:- BHP Billiton Ltd and CSR Ltd. I have to do work on both companies..

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EXECUTIVE SUMMARY:
    In this project discussions have been made on two public limited companies, which are listed in Australian Stock Exchange (ASX), BHP Billiton Ltd and CSR Ltd. At first introduction has been given on the selected companies, their background has been discussed and a brief has also been given on the topics which will be further discussed in the project. Then the discussions has been made on the owner’s equity for both the companies that is the equity items in their balance sheet, their meaning, and changes in those item over the past few years. The comparative analysis between the debt and equity position of the two companies have been done.
    The next discussion has been made on cash flow statement, each cash flow item has been analyzed and its change over the past years has been studied. A comparative analysis has been done on the three broad categories of cash flow statement between the companies and understanding from the comparative analysis has been presented. Then the discussion has been made on other comprehensive income statement, the items included in that, the reason why they are not included in the income statement, if they are important for evaluating the performance of the managers. Comparative analysis of comprehensive income statement between the companies has been made.
    The next topic of discussion has been corporate income tax. Tax expenses of each company has been scrutinized, calculation has been done of their effective tax rate and comparing the companies on their tax rate. Deferred tax assets and liabilities items of the companies have been analyzed and the changes in their values. Then cash tax has been calculated and the reason of difference between the book tax and cash tax has been analyzed. At last conclusions have been drawn based on the study.
Table of Contents
EXECUTIVE SUMMARY:    2
INTRODUCTION:    3
OWNER’S EQUITY:    4
CASH FLOW STATEMENT:    5
OTHER COMPREHENSIVE INCOME STATEMENT:    7
ACCOUNTING FOR CORPORATE INCOME TAX:    9
CONCLUSIONS:    14
REFERENCE:    15
INTRODUCTION:
    For this project two companies has been chosen, BHP Billiton Ltd and CSR Ltd. Their financial statements of last three years i.e of 2017, 2016 and 2015 have been studied in order to analyze the owner’s equity, cash flow statement, comprehensive income statement and corporate income tax. Comparative analysis has been done on each item between the companies. All the measured figures are in $ million.
    BHP Billiton Ltd is a multinational company with its headquarter in Melbourne, Victoria, Australia. The company operates in mining, metals and petroleum. The company was founded in 2001. In 2017, the company was ranked as world’s largest mining company by market capitalization and third largest company in Melbourne by revenue. Company’s revenue is almost US$ 38.285 billion. Its products are iron ore, petroleum, coal, copper, nickel, uranium, natural gas.
    CSR Ltd is an Australian industrial company with its headquarter in North Ryde, New South Wales, Australia. It operates in Australia, New Zealand and US. The company also used to sell by products of sugar from molasses to ethanol but in 2010 they sold that unit. It produces building products. Some of its products are glass, plasterboard, aluminum, insulation, bricks. The company was founded in 1855. Company’s revenue is almost A$1.74 billion.
OWNER’S EQUITY:
Owner’s equity is the amount of capital invested by the owners. Drawings are deducted from the amount and profit or loss from the business is added to it. In other words, equity is the difference between the assets and liabilities in a company. It is actually the proportion of the assets of the company which the owners can claim (Robb & Robinson, 2014).
(a) The equity of CSR Ltd. includes share capital which is the share of the company issued and fully paid, the share capital amount changes either because of buy back of shares or because of new issue of shares. It contains reserve, which is a part of profit kept aside for a definite purpose, for this company the purpose are acquisition of treasury shares, acquisition of non controlling interest and to make share based payments, the reserve amount increases due to increase in profit and decrease due to loss or for the payment of the purpose for which it is made. The third item is retained profits, which is the total earning of the company after paying off the dividend, this amount changes due to different amount of profit and loss each year.
    The equity of BHP Billiton Ltd. includes share capital, treasury shares, reserves and retained earnings. The company is co-owned by BHP Billiton Plc. So, share capital are issued to both the companies BHP Billiton Plc, BHP Billiton Ltd. The individual share capital is shown separately in the balance sheet. Reserve is a part of profit kept aside for a definite purpose, for this company the purpose is providing share awards to the employees. The company also has retained earnings whose meaning has been described in the case of previous company. The reason of change of these three items has already been stated above. The additional equity item for this company is treasury shares, which is the amount of shares kept by the company in its own treasure, either the shares were unsubscribed or the company bought back the shares, the amount changes when employees are awarded shares out of this stock.
(b) Comparative Analysis of the equity position of the two firms:
    Particulars
    2017
    2016
    2015
    BHP Billiton Ltd.
    62,726
    60,071
    70,545
    CSR Ltd.
    1,206.5
    1317.2
    1,206
    
Comparative Analysis of the debt position of the two firms:
    Particulars
    2017
    2016
    2015
    BHP Billiton Ltd.
    16,321
    26,102
    24,417
    CSR Ltd.
    30.5
    2.2
    -
CASH FLOW STATEMENT:
    A cash flow statement is a statement which shows the inflow and outflow from all the business activities in the normal course of the business. Cash flow is the lifeline of any business and without the inflow of cash...