In the file “Find Your Company” you will find the listed company you have been given for this course. Complete this assignment for the company you have been given. Please be careful to use the listed...

Part 2
The company that I have been given is Service Stream.
Service Stream Company Background
Service Stream provides essential wide services to infrastructure based industries
mainly in the telecommunications and utilities sectors in providing specialist end-to-
end services that include fixed line & wireless infrastructure design, maintenance,
deployment and management; contact centre activities and logistics.
It is a specialist services which is vital in the development and operation of the
Australia’s essential communications, energy and water networks.Besides,Service
Streams provide services in installing new network components,household and
business connections,meters as well as the energy efficient equipment.
The company Service Stream is a limited company and it is being listed on the
ASX.Today, Service Stream company have various outlets throughout the states of
Australia and the corporated Head Office of the Service Stream is based in
Melbourne CBD.Service Stream also become the first Australia leading provider of
essential network services.
Task 1
Below is the link for the Annual Report Of Service Stream fiscal year 2012
http://www.servicestream.com.au/uploads/other/1aa124bc85eb951a112989884b1b711
3259ad780.pdf
Based on the annual report, it can be seen that Service Stream Balance Sheet is
known as Consolidated Statement of Financial Position as at 30 June 2012.The
Consolidated Statement of Financial Position can be found under the Page 42 of the
Annual Report Of Service Stream.
Task 2
Below is a list of the items of equity which can be found under the Page 42 of the
Consolidated Statement of Financial Position:
Items Of Equity
Notes
2012
$000
2011
$000
Capital and
reserves
Issued Capital 22 228,416 228,416
Reserves 23 2,372 1,720
Retained earnings 24 39,879 23,997
http://www.servicestream.com.au/uploads/other/1aa124bc85eb951a112989884b1b7113259ad780.pdf
http://www.servicestream.com.au/uploads/other/1aa124bc85eb951a112989884b1b7113259ad780.pdf
TOTAL EQUITY 270,667 254,133
Description of my understanding of each item of equity:
Owner’s Equity:
Based on my understanding, equity is the owner’s value of the assets. Hence, in
accounting, owner’s equity mean as the value of the assets being contributed by the
owners. Therefore, this is being added to the total income earned and retained by the
company in order to give the company's total equity value.According to the
framework, equity is being known as ‘’the residual interest in the assets of the entity
after deducting all its liabilities’’ (AASB Framework,para 49c ).From the
Consolidated Statement of Financial Position of Service Stream the items of equity
consists of the issued capital,reserves as well as the retained earnings.
The following is the Equity equation:
Total Assets minus Total Liabilities (T - A = E). T - A (or Equity) where it is also
referred to as Net Worth, Capital and Shareholders Equity.
Issued Capital:
Capital is that part of equity which is obtained by trading shares for cash or cash
equivalents with the shareholders. Share Capital can be further divided as :
Authorised Capital, Issued Capital, Subscribed Capital, Called Up share Capital and
Paid up Share Capital.
In simple words, issued capital is the value of the shares issued to the shareholders
i.e. it is the total of the company shares being held by the shareholders.It is a portion
of authorized capital by the company that was offered to the shareholders and were
subscribed by them.Therefore, a company can issue new shares up to the full
amount of authorized shares capital to the public for subscription.
When the company called up the subscribed capital and the capital being paid by the
shareholders, then it is known as paid up capital.
Reserves:
Reserves are the funds which a company withdraws from general profit and is set
aside or retained future progress of the company. The money is going to be used for
any specific purpose like, if there is any losses of the business in future in increasing
the working capital.Hence,reserve is the part of the total residual interest in the net
assets of the company.The money is being retain out of the total profit before
distribution to shareholders.
Reserves are of two types: Capital Reserve and General Reserve.
Retained earnings
Retained earnings or also known as retained profits is the amount of accumulated
losses of the undistributed profits of the company.It is the amount of profit that been
accumulated and remain undistributed to shareholders or not transferred to other
reserves.The net income from the profit which is not distributed to shareholders
after deduction of its tax are known as...