Analysis of Commonwealth Bank and Bank of Queensland Performance Based on Financial Statements

Corporate accounting Assignment 1
CORPORATE ACCOUNTING ASSIGNMENT
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Corporate accounting Assignment 2
Executive Summary
The report was about analysis of CBA as well as BOQ performance based on their various
form of statements presented in their latest annual reports. From the analysis, it was
established that CBA is found as one of the most financially healthy bank in comparison to
the BOQ. This was due to the notion that CBA had high cash flows under the three categories
or levels of the cash flow statement unlike its counterpart. Besides, it was found out that BOQ
had higher effective tax rate as well as cash tax rate unlike CBA.

Corporate accounting Assignment 3
Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
OWNERS EQUITY...................................................................................................................5
Item of equity reported...........................................................................................................5
Analysis of equity and level the two firms.............................................................................7
CASH FLOWS STATEMENT..................................................................................................7
Item recorded in cash flows statements of the two banks......................................................7
Analysis of the Banks Based on the Three Classes of Cash Flows Statement.....................10
Analysis the Companies.......................................................................................................11
OTHER COMPREHENSIVE INCOME STATEMENT........................................................11
The reason for failure to report such items...........................................................................12
Comparison of items shown in this section for BOQ and CBA...........................................12
Whether other comprehensive income ought to be included in evaluation of managers’
performance..........................................................................................................................13
ACCOUNTING FOR CROPORATE INCOME TAX (15 Marks).........................................13
Tax expenses for CBA and BOQ.........................................................................................13
Effective tax rate of the two banks.......................................................................................13
Deferred Tax Assets/Liabilities............................................................................................14
Trend in deferred tax liabilities or assets for CBA and BOQ...............................................14
Cash Tax Amount.................................................................................................................15
Cash Tax Rate.......................................................................................................................15
Reason for Difference in cash tax rate and the book tax rate...............................................15
Conclusion................................................................................................................................16

Corporate accounting Assignment 4
Introduction
Commonwealth and Bank of Queensland are some of the largest banks in Australia. CBA is
considered as the Australian multinational financial institution with operations across United
States, UK, Asia and New Zealand (ADVFN 2018). The bank offers different form of
financial services comprising of the business, institutional and retail banking, superannuation,
brokering, investment, funds management and insurance services (CBA 2018). In essence,
CBA is one of the largest Australian listed firm on ASX as of the year ended 2015.
Established by the year 1911, by the government and then fully privatized by 1996, CBA is
amongst the big four financial institutions in the country amongst WBC, ANZ and NAB. Its
main headquarter is in Sydney (Commonwealth Bank 2017). On the other hand, BOQ is an
Australian oldest financial bank established in 1874 whose headquarter is located in
Queensland. BOQ offers quite a number of the financial services across New Zealand and
Australia. The bank has employed over 48,556 individuals or staff who are currently
operating its over 200 branches (Bank of Queensland 2017). The bank has a number of
branches with a rough network of about 252 branches which entails both 78 corporate
managed and around 166 owners’ managed. The bank operates under two main segments or
divisions; that is, the insurance as well as the banking (MorningStar.com 2018). It insurance
division deals with life insurance, customer credit insurance, funeral insurance, motor vehicle
gap insurance as well as the accident death insurance. Additionally, its banking division
entails personal, treasury, commercial, retail banking, debtor finance, small business loans as
well as the transaction and savings accounts (Morningstar 2017). The paper presents some
analysis of the two banks based on their financial statements and to be specific based on their
owner’s equity statements, cash flow, other comprehensive income statements as well as
based on their corporate income tax payment.