Evaluation of ANZ Bank's Financial Statements and Pre-Acquisition Entries

HA2032 Corporate and Financial Accounting
Trimester 1 2018
Individual Assignment

EXECUTIVE SUMMARY
The present report is about the evaluation of the Australian New Zealand Bank in respect of its
disclosure in the financial statements. As per the General Accepted Accounting Principles the
parent companies develop consolidated financial statement to report the financial wellbeing of
the parent company and its subsidiaries. The report includes the evaluation of the annual report
of the ANZ bank, it also conclude at the end that the annual reports are clearly and correctly
prepared by the management of company however there is further scope of improvement.
Further part of study shows that for preparing an effective consolidated financial statement there
should be proper analysis of pre-acquisition entries.

TABLE OF CONTENTS
Introduction......................................................................................................................................4
PART A...........................................................................................................................................4
1...................................................................................................................................................4
A..............................................................................................................................................4
B...............................................................................................................................................5
2...................................................................................................................................................5
3...................................................................................................................................................6
PART B...........................................................................................................................................6
1...................................................................................................................................................6
2...................................................................................................................................................7
3...................................................................................................................................................8
4...................................................................................................................................................8
5...................................................................................................................................................9

Introduction
The report is based on analysis of the two consecutive year’s annual report of the ANZ bank. The
report includes disclosure of the environmental practices done by the company along with the
characteristics of relevance.Further, the report includes recommendations to the top management
of the ANZ Bank so as to reinforce its compliance with the disclosure issue in coming future
reporting years. It also contains the details of the purpose of the pre-acquisition entries done in
the consolidated statements.
PART A
1
A
The relevance of the accounting is that the information in the financial statements must be in
such a way that it becomes helpful and also affect the decision of the person needing it. The
relevance is very crucial for the better quality of the information in the financial statements
(Chen and et al. 2018). Here taking into consideration the annual report of Australian New
Zealand Bank for the year 2016 and 2017, it was observed that the report has high qualitative
characteristics of the relevance. It is because the financial information is based on the each of the
material associate related to the group (Annual Report 2016. ANZ Bank). For example, the
information provided in the report are systematically categorized and well organized which can
be helpful for the investors to take the right decisions. The information are published as per the
accounting standards and accurate in nature. Along with this the Bank also uses a Group
performance framework so as to evaluate the overall performance of the ANZ Bank. The
indicators in each of the category have an aim to deliver value to shareholders, and for that, they
encourage the people so that they have a focus on both the long-term strategies and on the annual
priorities.