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    Accounting

    Financial Accounting Assignment Help

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    Financial Accounting Assignment Help


     Introduction

    The current study is regarding the evaluation of financial reporting and maintaining a proper system of assessment for the financial statements as well as incorporating the growth of the organisation notably, CLS and Westpac are able to maintain their business performance depending upon the financial position of themselves. It is been found that both of the companies respectively use the accounting standard of Australia which is regarded as AASB which is the Australian accounting standards. The study reflects the incorporation of assuming the fact that financial statements are one of the effective measurements that provides information regarding the financial state of a different organisation that is from different two industries. The papers delves into the aspect of the existing financial state of the two different organizations that belongs from two different industries as well as are able to stay at a financially stable position overtime.
     
    Company Background
    Westpac is one of the important banks in Australia whereas CLS limited is a pharmaceutical firm. Both of the companies operate based upon the AASB or the Australian Accounting Standards. The balance sheets of both the companies can be assets to understand the financial state of the companies. It is being seen that both the companies as per AASB have the provision for contingent liabilities like liabilities related to lawsuits. But for both of the companies it is minimal as per the annual reports of both the companies.
     
    In case of CLS limited there is no amortization of goodwill rather impairment test. However, in case of copyright, patents, etc. there is amortization. All are intangible assets in case of both the two companies and it is being found that the goodwill as intangible asset will be able to render future returns in case of Westpac bank in more numbers as compared to that of CLS limited.
     
    Financial Performance
    The Westpac's company statement is based on the cash flow. The investments o the shareholder is defines the market share price (Jackowicz, et al 2017). The company service has progress in the market. There are three companies has shown their net income and cash flow statement. However, the financial statement has represented the objective of the company shareholder. The   financial position has changed as per their shareholder's performance (Yu, 2017). Therefore, the company has analyzed their financial statement with shareholder, manager, employees, and investors. 
     
    Income statement and Statement of cash flow
    Cash flow is a statement that is represents company's investment, expenses as well as the shareholder's activities. However,  the total investment and the income statement of the company and the cash flow statement of the company to generalized through the operating activities, cash generated from the operation and the income levels under this performance There are three companies are elaborate their income statement are as follows :
    The CLS has analysis their operating cash flow. The income statement of the year 2016 to 2018. 
    In that case, the investors are more concern about their company, they are invest money to the business that brings money for the investment by overhead costs of organization, website development as well as the workplace rent. The investors are having ideas and provide advice who can contribute the money and ideas for the profitability services and its returns (Lewellen and Lewellen, 2016). The expertise brings and contributes in the business growth.
    In this assessment, there are some categories to success key of a firm. Organizational debt, dividends and sales are effective factors of the organization. However, an organization generate their revenue by selling assets, there are two types of assets, one is fixed assets and another one is variable assets, both are marked as success key of an organizations (Cifuentes, 2016). On the other hand, every time it is very difficult to generate cash from the internal funds, in that case, the organization has generated their revenue through the company's equity share.
    In an organization, cash flow is most essential part of the financial statement. Most of the organization has generated their revenue through the sales. However,  cash flow helps the business organization to generate active net cash, that is marked  the organizational revenue.
    According to the report, the company has generate enough cash for they have to capable to pay the all expenditure of the organization. In many case, when  the annual turnover rate is not high enough, but with respect to the profits and taxation rate, it can be predicted that the company will be able to gain a good profit from its business activities (Huang and Ritter, 2018). On the other hand, it can also be stated that through making proper planning of the expenditure list, it will be easier for the company to lead all the operations towards success.
    In case of WESTPAC limited, there has no sufficient cash for capital expenditure. The company has spend money for purchasing equipment, operating cash flows and the net investing cash flows from the discontinued operations. The total amount of money gets into negative balance from the opening to the closing balance of the company.   
    According to the cash flow stated in the appendix, the company has covered the entire operations in terms of capital expenditure and the dividend payment, there is dividend paid, dividend paid to non-controlling interests and the net financing cash flow from the continuing operations (Huang and Ritter, 2018).  Thus, as per the question, it is explained that the capital expenditures are the payments provided in the firms. 
     
    Conclusion 
    In this context, there are three companies are analyzed their cash flow statement, but only WESTPAC Limited only capable to perform all the operation activities through borrowing and lending. However, every organization need cash flow statement to measure the financial statement or annual report. The cash flow statements are not only the estimates of the flow of cash but also it provides a constructive understanding regarding the financial stability and the liquidity available to the company to cover up its current liabilities. It provides advantage in terms of providing opportunity to the company that has a greater inflow of cash and lesser outflow of cash. To emphasize on this issue it can be said that WESTPAC ltd. has a greater competitive advantage as compared to that of the other companies due to the reason that WESTPAC ltd. is able to maintain a balance between its inflow and outflow of cash for which the financial condition of the company is preferably more stable as compared to the other companies.