Multiple Question Based On Accounting Assessment Answer

• It includes the benefits that the company pays to its employees. As stated by Johnston et al. (2017, p.456), the employee benefits paid by the company represents the number of leave benefits and other service entitlements that are paid along with the salary or the entitlements that are paid to the employees in unforeseen circumstances.
• The amount of provision includes items like wages and salaries and the non-monetary benefits that are paid to the employees. The annual leave benefits paid to the employees and the long leave benefits paid to the employees so they are items of provisions (Hussey & Ong, 2017). 
• Moreover, the provision part of the balance sheet also includes a provision regarding the leases and the mining lease agreements. It also includes certain insured risks that are paid to the workers (Hussey & Ong, 2017). 
• Along with these, the provision contains certain uncertain amounts of tax liabilities which may arise in future.

The benefits that are paid to the employees are the remuneration benefits that are provided by the company. The leave remuneration represents the number of provisions of paid leaves to the employees that would become a liability for the company.
The non-monetary benefits are non-recurring benefits. There is a chance that they may occur in future. Such amount comes under provision because these may occur if the employee performs well.
The lease agreements are the contracts that may fall on the company for remediation of various areas. Besides, the insured risks are the injury compensation that is paid to an employee if he or she gets injured. 
Lastly, the tax liability is a liability that may arise in future. Such liabilities are the deferred tax liabilities.
According to AASB 137 provision is referred to as any amount of money that has been kept aside by a company to counterfeit unforeseen circumstances (Tran & Zhu, 2017, p.757). The items that are placed under provisions in the financial report of Wesfarmers for 2017 are correct because all of these expenses are used to counterfeit uncertain events in future. So the definition of the provision as per IAS 37 is satisfied by the items. From 2014 the liabilities for the employee benefits have increased from 7746 to 9132 million dollars in 2017. The number of employee benefits was 8847 million dollars. So it has increased about 1600 million dollars approximately.

Question 4:

Interest-bearing loans appear in current liabilities as well as noncurrent liabilities. In the most recent fiscal year, Wesfarmers has been able to raise interest-bearing loan amounting to 5671 million dollars in non-current liabilities. Wesfarmers has been able to repay about 1500 million dollars of the interest-bearing loan so after repayment the amount of interest-bearing loan comes to 4066 million dollars (Colla, 2017, p.217).  According to the previous financial years, the amount of interest-bearing loans was about 4320 million dollars in 2014 which have increased up to 4615 in the year 2015. So it is clear that the amount of interest-bearing loan has increased from 2014 to 2017.  
So it is clear, that the amount of interest-bearing loan had increased about 1300 million dollars approximately from 2014 to 2017 after all the adjustments (Colla, 2017, p.217). 
On the other hand, the amount of money raised by Wesfarmers from interest-bearing loans in the current liabilities is 1362 in the recent financial year. Wesfarmers have paid approximately 300 million dollars out of the amount so after paying the amount the interest-bearing loan comes to 1347 (GRADE).  In the year 2014, Wesfarmers had an interest-bearing loan of 745 million dollars in the current liabilities section which had increased to 1913 million dollars in the year 2015.  The amount had decreased to 1362 in 2016 and then 1347 in 2017.
So it is clear that the amount of interest-bearing loan in the current liabilities of Wesfarmers has increased by 900 million dollars from 2014-2017 after all the adjustments.   

Question 5:

The noncurrent liabilities of the company which include financial instruments like loans and borrowing is secured borrowings (Hussey & Ong, 2017). These financial borrowings are given to the company represents bank loans. The bank loans paid to the company are secured. Along with this the noncurrent liabilities also include Australian bonds and Coles credit transaction. Such non-current liabilities were not secured. 

Question 6:

There are non-current provisions in the balance sheet of the company.  In general terms, these non-current provisions represent the number of provisions for deferred tax or provision for certain lease obligations made by the company (Hussey & Ong, 2017).  It may also include certain noncurrent liabilities to some extent. 

Part B

Question 1:

No, the expense seen as income tax in brackets would not be present in the income statement of a partnership business because the income tax that has been mentioned in brackets for Wool Worth Company is same as the corporation tax. As commented by WEINSWIG (2016), a company form of business is taxed on its net profit. After deduction of the amount of tax or the corporation tax, the owners or the shares of the business get the share of the profits as dividends. According to the IRS, the type of tax that is imposed on a company form of organisation is corporation tax because the company operates under a legal name and a common seal.  Tax is imposed on the company.
On the other hand for partnership business, there are partners who invest in the business. A partnership business is not a legal form of an entity so the amount of tax is not deducted from the profit of the partnership business.  In case of a partnership business, the profits that are divided amongst the partners are taxed. The business owes to the partners so partners have to pay tax on their profit earnings from the business. In case of partnership the partner's files returns on form 1065, represent their own income from the business and their expenses. For this reason, the income tax does not appear in brackets in the income statement of the partnership business.   

Question 2:

The statement showing changes in Equity the Total profit of Wool Worth for the financial year 2017 shows a portion of retained earnings. The available total income or retained profit is 1535.7 million dollars which have been appropriated into dividends that are paid. Out of retained earnings of 1535.7 million dollars, dividends amounting to 859.6 million dollars are paid. 2.2 million dollars have been kept aside for treasury shares. 5.6 Million dollars have been made for other purposes (GRADE, p. 2058).  After all the proportioned adjustments the final balance comes up to 3739.2 million dollars on 25th June 2017.  In case of a partnership, the total profit available for appropriation is carried to the profit and loss appropriation account. In the partnership, there are no questions for payment of dividend and tax because the partnership is not a legal entity where shares are bought. Partners invest direct cash as capital and have certain entitlements like interest on capital, bonuses, salaries etc.  The total appropriation profit in partnership business is allocated in items like salaries of partners, interest on capital, and interest on loan taken by any partner or partners or any other entitlements and finally partner's share of profits (de Oliveira& Cortimiglia, 2017, p.747). These items are deducted from the appropriation profit for a partnership business.
On the other hand, Woolworths is a company form of business. Its capital is divided into parts called shares. The appropriation profit is exposed to dividends to shareholders of the company. In a company form of business like Wools Worth the total profit available for appropriation is allocated to shareholders in form of dividends from equity shares or other shares, or retained earnings and reserves (GRADE, p. 2058). 
The main reasons for the differences in the allocation of appropriation of total profit are:
The difference in structure- Woolworth is a company form of business in which the capital investment is in the form of shares (Rose, 2017, p.225). Out of the total appropriation profit shareholders get dividends but in case of the partnership then there is no question of shares. Partners pay cash as capital.
Liability- Partnership business has unlimited liability but Wool Worth is a company so it has limited liability.  Partners have to bear all responsibilities from their shares of profit. 
The difference in taxation- As Wool worth is a company business the taxation is different from that of partnership.  In case of the partnership, partners are taxed on their individual profit but the overall net profit of Woolworth is Subject to tax (Irvine & Moerman, 2017, p.35).

Question 3:

Issued capital represents the portion that has been issued as shares to shareholders. As stated by Guinnane & Schneebacher (2018), the capital structure of Woolworth consists of Authorised capital, the issued capital subscribed capital. For a company form of business is the amount that has been issued as shares out of the total share capital or authorised capital is issued capital.  
In case of the partnership business, there is no question of shares issue or subscription. A partnership business is confined to one or more partners who contribute cash as capital. Besides partnership business does not issue shares to outsiders as Woolworth. A partnership business is confined to partners and not public but Wools Worth invites people from all over the globe to become owners by buying its shares. In case of Woolworth, the company has a limit to raising capital known as authorised capital. Out of the Authorised capital, certain portions are issued to the public. So the term Issued capital is valid for Woolworth and not applicable to the partnership (Evans, 2017). 

Question 4:

No, a partnership business normally does not prepare any cash flow statement.  This is because the cash flow statements fall under the requirements of a company form of business and not a partnership form of business. A company business has an unlimited lifetime. According to the laws laid down by accounting standards, the cash flow statement for a company is mandatory because it helps the shareholders to get knowledge about the inflows and the outflows of cash for a company (Maxwell, 2017).  Similarly, in case of Woolworth, the shareholders of the company need to have knowledge about the inflow and the outflow of cash for the company. Preparation of  Cash flow statement for Woolworth will help the shareholders of the company get information about the business operations, working capital cash and future prospects of the company has an unlimited lifetime. 
On the other hand in case of the partnership, the business is limited to partners. A partnership business does not issue shares. The partners only share profits and losses along with liabilities. Besides, a partnership business is unlike a company business which carries for the lifetime (Srivastava, Shervani, & Fahey, 1999, p.168). In case of the partnership, the business may be wound up with the death, dissolution or insolvency of a partner. So it is not required to get information about future prospects. Moreover, the inflow and outflow of cash in case of partnership business can be estimated through revaluation. So typical partnerships do not make CFS and include it in financial statements.

Reference list

Colla, A. (2017). Corporate governance in 2017: Failures and wins. Governance Directions, 69(4), 217.
Creighton, B., Denvir, C., & McCrystal, S. (2017). Strike ballots and the law in Australia.
de Oliveira, D. T., & Cortimiglia, M. N. (2017). Value co-creation in web-based multisided platforms: A conceptual framework and implications for business model design. Business Horizons, 60(6), 747-758.
Evans, N. N. (2017). The internationalization strategies of small and medium-sized enterprises (SMEs) clothing suppliers in the UK (Doctoral dissertation, Manchester Metropolitan University).
GRADE, G. B. Corporate Governance Of Wesfarmers Ltd.
GRADE, G. B. Strategic Human Resource Management Of Woolworths 0 Downloads| 9 Pages 2,058 Words| Published Date: 12/10/2017.
GRADE, G. B. Strategic Management: Wesfarmers.
Guinnane, T. W., & Schneebacher, J. (2018). Capital Structure and the Choice of Enterprise Form: Theory and History.
Hussey, R., & Ong, A. (2017). Corporate Financial Reporting. Springer.
Irvine, H., & Moerman, L. (2017). Gambling with the public sphere: Accounting’s contribution to debate on social issues. Critical Perspectives on Accounting, 48, 35-52.
Johnston, R., Stafford, J., Pierce, H., & Daube, M. (2017). Alcohol promotions in Australian supermarket catalogues. Drug and alcohol review, 36(4), 456-463.
LIABILITIES, T. C., & LIABILITIES, N. C. STATEMENT OF FINANCIAL POSITION For the period ending 31 March 2016.
Maxwell, D. (2017). Valuing Natural Capital: Future Proofing Business and Finance. Routledge.
Rose, N. (2017). Community food hubs: an economic and social justice model for regional Australia?. Rural Society, 26(3), 225-237.
Srivastava, R. K., Shervani, T. A., & Fahey, L. (1999). Marketing, business processes, and shareholder value: An organizationally embedded view of marketing activities and the discipline of marketing. The Journal of Marketing, 168-179.
Tran, A., & Zhu, Y. H. (2017). The impact of adopting IFRS on corporate ETR and book-tax income gap. In Australian Tax Forum (Vol. 32, No. 4, p. 757). Tax Institute.
WEINSWIG, D. (2016). BREXIT BRIEFINGS 1