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ANZ Bank Annual Report Analysis

   

Added on  2020-03-01

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Running head: REQUIREMENTS OF ACCOUNTING THEORY 1Requirements of Accounting TheoryName:Institution:Affiliation:
ANZ Bank Annual Report Analysis_1

REQUIREMENTS OF ACCOUNTING THEORY 2Executive SummaryAccounting reporting and strategy is very important in any organization. Success can only beachieved if a company follows the right procedures in policy implementation and reporting, withregards to accounting. The report looks at one of the most successful banks in Australia and NewZealand, ANZ Bank and the kind of reporting strategy, which they use. The report has anintroduction, main body, which outlines the strategy that has been used by the bank and thenends with a conclusion of the same. The report will look into the details of some of theaccounting policies, which have been put in place by ANZ Bank Limited.
ANZ Bank Annual Report Analysis_2

REQUIREMENTS OF ACCOUNTING THEORY 3ContentsExecutive Summary.........................................................................................................................21.0 Introduction................................................................................................................................42.0 Accounting Policies and Estimates............................................................................................42.1 Accounting Policies and Estimates Used...............................................................................42.1.1 Basis of Preparation.........................................................................................................42.1.2 Recognition of Income....................................................................................................52.1.3 Recognition of Expense...................................................................................................62.1.4 Income Tax......................................................................................................................62.2 Flexibilities of Accounting Policies and Estimates Used by ANZ Bank Limited.................72.3 Accounting Policies and Estimates Used by ANZ Bank Competitors..................................72.4 If Policies and Estimates are Acceptable...............................................................................82.5 Is Accounting Strategy Hiding or Revealing.........................................................................92.6 Red Flags in Accounting Report..........................................................................................112.7 Which Accounting Positions Capture them and Why?........................................................113.0 Evaluation of Accounting Policy.............................................................................................113.1 Political pressures that affect the accounting standard-setting environmen........................113.2 Implications of organizations making accounting disclosures............................................123.3 Understand the Implications of Particular Accounting Disclosures....................................134.0 Report on ANZ Bank Managers’ Accounting and Reporting Strategy...................................134. 1 Identify Key Accounting Policies.......................................................................................134. 2 Assess Accounting Flexibility............................................................................................144.3 Evaluate Accounting Strategy..............................................................................................144.4 Evaluate the Quality of Disclosure......................................................................................154.5 Identify Potential Red Flags.................................................................................................175.0 Compliance with Conceptual Framework...............................................................................176.0 Conclusion...............................................................................................................................176.0 References................................................................................................................................19
ANZ Bank Annual Report Analysis_3

REQUIREMENTS OF ACCOUNTING THEORY 4Accounting Reporting Strategy of ANZ Bank1.0 IntroductionANZ Bank is one of the most successful banks in Australia and New Zealand. The reportviews the annual reports for 2015 and 2016 for the bank and looks at the strategy which the bankhas used in its financial reporting (ANZ, 2017). The report therefore views various accountingpolicies and how they have been applied to the organization.2.0 Accounting Policies and Estimates2.1 Accounting Policies and Estimates Used 2.1.1 Basis of PreparationCompliance - The financial statements for ANZ Bank are prepared according torequirements of the Financial Markets Conduct Act of 2013. The financial statements are incompliance with Australia’s accepted accounting practices, International Financial ReportingStandards and any other reporting standards which are applicable (ANZ, 2017).Estimates and Assumptions – The financial statements have been prepared usingmanagement judgements, estimates and assumptions which affect whatever has been reported.Measurement – The financial statements have been prepared according to historical casebasis and some assets and liabilities are stated at a fair value. These assets and liabilities arederivative financial instruments, assets which are available for sale, financial instruments whichhave been held for trading and those that have been designated at fair value through profit andloss.
ANZ Bank Annual Report Analysis_4

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