Financial Reporting & Analysis C17-1

\begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{4}{|c|}{ Year Ended 30 June } \\ \hline & \begin{tabular}{c} 2012 \\ $m \end{tabular} & \begin{tabular}{c} 2011 \\ $m \end{tabular} & \begin{tabular}{c} Change \\ $m \end{tabular} & \begin{tabular}{c} Change \\ % \end{tabular} \\ \hline \begin{tabular}{l} Net cash used in investing activities \\ Operating cash flows less investing cash flows \end{tabular} & 5,197(4,079) & 5,477(2,541) & (280)(1,538) & (5.1)60.5 \\ \hline \begin{tabular}{l} Cash flows from financing activities \\ Proceeds from borrowings \\ Repayment of borrowings \\ Repayment of finance lease principal amounts \\ Staff repayments of share loans \\ Finance costs paid \\ Acquisition of non-controlling interests \\ Dividends paid to equity holders of Telstra Entity \\ Dividends paid to non-controlling interests \\ Net cash used in financing activities \end{tabular} & \begin{tabular}{r} 3,049 \\ (2,224) \\ (52) \\ 3 \\ (1,154) \\ (37) \\ (3,475) \\ (16) \\ (3,906) \\ \end{tabular} & \begin{tabular}{r} 2,340 \\ (2,536) \\ (61) \\ 8 \\ (1,135) \\ 0 \\ (3,475) \\ (14) \\ (4,873) \\ \end{tabular} & \begin{tabular}{r} 709 \\ 312 \\ 9 \\ (5) \\ (19) \\ (37) \\ 0 \\ (2) \\ 967 \\ \end{tabular} & \begin{tabular}{c} 30.3 \\ (12.3) \\ (14.8) \\ (62.5) \\ 1.7 \\ n/m \\ 0.0 \\ 14.3 \\ (19.8) \\ \end{tabular} \\ \hline Net increase in cash and cash equivalents & 1,291 & 604 & 687 & 113.7 \\ \hline \begin{tabular}{l} Cash and cash equivalents at the beginning \\ of the year \\ Effects of exchange rate changes on cash \\ and cash equivalents \end{tabular} & 2,637 & 2,105 & 532 & 25.3 \\ \hline \begin{tabular}{l} Cash and cash equivalents at the end \\ of the year \end{tabular} & 3,945 & 2,637 & 1,308 & 49.6 \\ \hline \end{tabular} (Note: The Australian Accounting Standards Board has made certain amendments to the IASB pronouncements in making A-IFRS, however these generally have the effect of eliminating an option under IFRS, introducing additional disclosures or implementing requirements for not-for-profit entities, rather than departing from IFRS for Australian entities.) Required: Prepare a table like the one below and in each cell enter any reporting differences that you "nd between these three companies. Consider "reporting differences" to be any item found on zore than one firm's statement of cash flows but reported in different sections. c171 Statement of cash flow differences under IFRS and U.S. GAAP (LO 17-7) Statements of cash flows are provided for three companies: - Telstra Corporation Limited is an Australian telecommunications and media company, formerly owned by the Australian government and privatized in stages from the late 1990s. Telstra is the largest provider of local and long-distance telephone services, mobile services, dial-up, wireless, DSL, and cable Internet access in Australia. - Seven Group Holdings Limited has a portfolio of businesses with a presence in industrial services, media, property, and other investments. - First Solar, Inc., manufactures and sells solar modules with advanced thin film semiconductor technology and designs, constructs, and sells photovoltaic (PV) solar power systems. Telstra and Seven Group Holdings are both Australian companies and report under A-IFRS, the Australian version of IFRS. Australia, along with many European countries, was one of the initial adopters of IFRS, putting it into effect in 2005. First Solar, Inc. and Subsidiaries Consolidated Statements of Cash Flows Telstra Corporation Limited and Controlled Entities \begin{tabular}{|c|c|c|} \hline & \begin{tabular}{r} 2012 \\ $000 \\ \end{tabular} & \begin{tabular}{l} 2011 \\ $000 \\ \end{tabular} \\ \hline \begin{tabular}{l} Cash flows related to operating activities \\ Receipts from customers \\ Payments to suppliers and employees \\ Dividends received from equity accounted investees \\ Other dividends received \\ Interest and other items of a similar nature received \\ Interest and other costs of finance paid \\ Income taxes received/(paid) \\ Net operating cash flows \end{tabular} & \begin{tabular}{r} 4,726,707 \\ (4,819,946) \\ 25,626 \\ 38,798 \\ 4,371 \\ (109,677) \\ 19,040 \\ (115,081) \\ \end{tabular} & \begin{tabular}{r} 3,443,091 \\ (3,447,287) \\ 33,157 \\ 31,372 \\ 7,621 \\ (58,487) \\ (38,341) \\ (28,874) \\ \end{tabular} \\ \hline \begin{tabular}{l} Cash flows related to investing activities \\ Payments for purchases of property, plant and equipment \\ Proceeds from sale of property, plant and equipment \\ Payments for purchase of intangible assets \\ Acquisition for non-controlling interests \\ Consideration for business combination, net of cash acquired \\ Proceeds from sale of subsidiary, net of cash disposed \\ Acquisition of equity accounted investees \\ Proceeds from sale of shares in equity accounted investees \\ Payments for other investments \\ Proceeds from sale of other financial assets \\ Other \\ Net investing cash flows \end{tabular} & \begin{tabular}{c} (81,854) \\ 9,587 \\ (3,154) \\ (197,680) \\ (422,461) \\ 164,028 \\ (83,767) \\ 1,989 \\ (21,119) \\ 29,910 \\ 2,010 \\ (602,511) \end{tabular} & \begin{tabular}{c} (60,997) \\ 1,689 \\ (10,563) \\ - \\ (44,093) \\ - \\ (448,360) \\ 300,586 \\ (297,433) \\ 4,522 \\ (285) \\ (554,934) \\ \end{tabular} \\ \hline \begin{tabular}{l} Cash flows related to financing activities \\ Proceeds from issue of shares-Seven Group Holdings Limited \\ Proceeds from issue of shares-subsidiaries \\ Ordinary dividends paid \\ TELYS4 dividends paid \\ Proceeds from borrowings \\ Repayment of borrowings \\ Net financing cash flows \\ Net (decrease)/increase in cash and cash equivalents \\ Cash and cash equivalents at beginning of period \\ Effect of exchange rate changes on cash and cash equivalents \\ Cash and cash equivalents at end of the period \end{tabular} & \begin{tabular}{r} 8,250 \\ 2,000 \\ (110,488) \\ (33,209) \\ 1,933,575 \\ (1,018,759) \\ 781,369 \\ 63,777 \\ 65,244 \\ (1,272) \\ 127,749 \end{tabular} & \begin{tabular}{r} 7,000 \\ 159 \\ (109,948) \\ (34,222) \\ 1,347,215 \\ (1,007,698) \\ 202,506 \\ 381,302) \\ 449,671 \\ (3,125) \\ 65,244 \end{tabular} \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{4}{|c|}{ Year Ended 30 June } \\ \hline & \begin{tabular}{c} 2012 \\ $m \end{tabular} & \begin{tabular}{c} 2011 \\ $m \end{tabular} & \begin{tabular}{c} Change \\ $m \end{tabular} & \begin{tabular}{c} Change \\ % \end{tabular} \\ \hline \begin{tabular}{l} Net cash used in investing activities \\ Operating cash flows less investing cash flows \end{tabular} & 5,197(4,079) & 5,477(2,541) & (280)(1,538) & (5.1)60.5 \\ \hline \begin{tabular}{l} Cash flows from financing activities \\ Proceeds from borrowings \\ Repayment of borrowings \\ Repayment of finance lease principal amounts \\ Staff repayments of share loans \\ Finance costs paid \\ Acquisition of non-controlling interests \\ Dividends paid to equity holders of Telstra Entity \\ Dividends paid to non-controlling interests \\ Net cash used in financing activities \end{tabular} & \begin{tabular}{r} 3,049 \\ (2,224) \\ (52) \\ 3 \\ (1,154) \\ (37) \\ (3,475) \\ (16) \\ (3,906) \\ \end{tabular} & \begin{tabular}{r} 2,340 \\ (2,536) \\ (61) \\ 8 \\ (1,135) \\ 0 \\ (3,475) \\ (14) \\ (4,873) \\ \end{tabular} & \begin{tabular}{r} 709 \\ 312 \\ 9 \\ (5) \\ (19) \\ (37) \\ 0 \\ (2) \\ 967 \\ \end{tabular} & \begin{tabular}{c} 30.3 \\ (12.3) \\ (14.8) \\ (62.5) \\ 1.7 \\ n/m \\ 0.0 \\ 14.3 \\ (19.8) \\ \end{tabular} \\ \hline Net increase in cash and cash equivalents & 1,291 & 604 & 687 & 113.7 \\ \hline \begin{tabular}{l} Cash and cash equivalents at the beginning \\ of the year \\ Effects of exchange rate changes on cash \\ and cash equivalents \end{tabular} & 2,637 & 2,105 & 532 & 25.3 \\ \hline \begin{tabular}{l} Cash and cash equivalents at the end \\ of the year \end{tabular} & 3,945 & 2,637 & 1,308 & 49.6 \\ \hline \end{tabular} (Note: The Australian Accounting Standards Board has made certain amendments to the IASB pronouncements in making A-IFRS, however these generally have the effect of eliminating an option under IFRS, introducing additional disclosures or implementing requirements for not-for-profit entities, rather than departing from IFRS for Australian entities.) Required: Prepare a table like the one below and in each cell enter any reporting differences that you "nd between these three companies. Consider "reporting differences" to be any item found on zore than one firm's statement of cash flows but reported in different sections. c171 Statement of cash flow differences under IFRS and U.S. GAAP (LO 17-7) Statements of cash flows are provided for three companies: - Telstra Corporation Limited is an Australian telecommunications and media company, formerly owned by the Australian government and privatized in stages from the late 1990s. Telstra is the largest provider of local and long-distance telephone services, mobile services, dial-up, wireless, DSL, and cable Internet access in Australia. - Seven Group Holdings Limited has a portfolio of businesses with a presence in industrial services, media, property, and other investments. - First Solar, Inc., manufactures and sells solar modules with advanced thin film semiconductor technology and designs, constructs, and sells photovoltaic (PV) solar power systems. Telstra and Seven Group Holdings are both Australian companies and report under A-IFRS, the Australian version of IFRS. Australia, along with many European countries, was one of the initial adopters of IFRS, putting it into effect in 2005. First Solar, Inc. and Subsidiaries Consolidated Statements of Cash Flows Telstra Corporation Limited and Controlled Entities \begin{tabular}{|c|c|c|} \hline & \begin{tabular}{r} 2012 \\ $000 \\ \end{tabular} & \begin{tabular}{l} 2011 \\ $000 \\ \end{tabular} \\ \hline \begin{tabular}{l} Cash flows related to operating activities \\ Receipts from customers \\ Payments to suppliers and employees \\ Dividends received from equity accounted investees \\ Other dividends received \\ Interest and other items of a similar nature received \\ Interest and other costs of finance paid \\ Income taxes received/(paid) \\ Net operating cash flows \end{tabular} & \begin{tabular}{r} 4,726,707 \\ (4,819,946) \\ 25,626 \\ 38,798 \\ 4,371 \\ (109,677) \\ 19,040 \\ (115,081) \\ \end{tabular} & \begin{tabular}{r} 3,443,091 \\ (3,447,287) \\ 33,157 \\ 31,372 \\ 7,621 \\ (58,487) \\ (38,341) \\ (28,874) \\ \end{tabular} \\ \hline \begin{tabular}{l} Cash flows related to investing activities \\ Payments for purchases of property, plant and equipment \\ Proceeds from sale of property, plant and equipment \\ Payments for purchase of intangible assets \\ Acquisition for non-controlling interests \\ Consideration for business combination, net of cash acquired \\ Proceeds from sale of subsidiary, net of cash disposed \\ Acquisition of equity accounted investees \\ Proceeds from sale of shares in equity accounted investees \\ Payments for other investments \\ Proceeds from sale of other financial assets \\ Other \\ Net investing cash flows \end{tabular} & \begin{tabular}{c} (81,854) \\ 9,587 \\ (3,154) \\ (197,680) \\ (422,461) \\ 164,028 \\ (83,767) \\ 1,989 \\ (21,119) \\ 29,910 \\ 2,010 \\ (602,511) \end{tabular} & \begin{tabular}{c} (60,997) \\ 1,689 \\ (10,563) \\ - \\ (44,093) \\ - \\ (448,360) \\ 300,586 \\ (297,433) \\ 4,522 \\ (285) \\ (554,934) \\ \end{tabular} \\ \hline \begin{tabular}{l} Cash flows related to financing activities \\ Proceeds from issue of shares-Seven Group Holdings Limited \\ Proceeds from issue of shares-subsidiaries \\ Ordinary dividends paid \\ TELYS4 dividends paid \\ Proceeds from borrowings \\ Repayment of borrowings \\ Net financing cash flows \\ Net (decrease)/increase in cash and cash equivalents \\ Cash and cash equivalents at beginning of period \\ Effect of exchange rate changes on cash and cash equivalents \\ Cash and cash equivalents at end of the period \end{tabular} & \begin{tabular}{r} 8,250 \\ 2,000 \\ (110,488) \\ (33,209) \\ 1,933,575 \\ (1,018,759) \\ 781,369 \\ 63,777 \\ 65,244 \\ (1,272) \\ 127,749 \end{tabular} & \begin{tabular}{r} 7,000 \\ 159 \\ (109,948) \\ (34,222) \\ 1,347,215 \\ (1,007,698) \\ 202,506 \\ 381,302) \\ 449,671 \\ (3,125) \\ 65,244 \end{tabular} \\ \hline \end{tabular}