Annual Report Analysis and Interpretation

Running Head: ANNUAL REPORT ANALYSIS AND INTERPRETATION
ANNUAL REPORT ANALYSIS AND INTERPRETATION
Name of the Student
Name of the University
Author Note

1ANNUAL REPORT ANALYSIS AND INTERPRETATION
Table of Contents
Answer 1....................................................................................................................................2
Accounting Policies of Company...........................................................................................2
Answer 2....................................................................................................................................3
Consistency of Accounting Policies.......................................................................................3
Answer 3....................................................................................................................................5
Appropriateness of Accounting Changes...............................................................................5
Answer 4....................................................................................................................................6
Connection between Accounting Policies of Company and its Strategies............................6

2ANNUAL REPORT ANALYSIS AND INTERPRETATION
Answer 1
Accounting Policies of Company
The analysis of financial statement provides the idea to investors in order to decide for
the investment of funds in the particular company. Annual reports are prepared for the
intention to give the information to the shareholders as well as other interested people, the
activities and the financial performance of the company. It helps in giving a lot of the
information about the business organization.
The Commonwealth Bank is the multinational Australian bank, which is
headquartered in Sydney, Australia. It has its business all across United Kingdom, United
States, Asia and New Zealand. Moreover, it provides the various financial services that
include retail banking, institutional banking, investment and broking services,
superannuation, business and institutional banking (Commbank.com.au. 2019).
The financial report of the Commonwealth bank includes consolidated as well as separate
financial statements of bank and the Group respectively. Moreover, the notes that
accompanies to the financial reports and the Independent Auditor also forms the part of the
financial report. Further, the incorporated and domicile of the bank is in Australia and it is
for-profit entity. Hence, the overview of the financial statement is that it contains principal
policies of accounting, basis of the accounting as well as future accounting development.
These accounting policy for the balances and the transactions helps in providing the
information for assisting in understanding of the measurement, recognition and disclosure of
the information. Further, the company’s financial report are prepared on the basis of going
concern by using historical cost basis that is except in case of certain assets and the liabilities
that are measured at the fair value (Albu, Albu & Alexander, 2014). Following are the some
of accounting policies covered in the annual report: