logo

Answer to Question 1: Financial accounting Name of the University Name of the student

   

Added on  2020-03-23

20 Pages1321 Words243 Views
 | 
 | 
 | 
Running head: FINANCIAL ACCOUNTINGFinancial accountingName of the UniversityName of the studentAuthors note
Answer to Question 1: Financial accounting Name of the University Name of the student_1

1FINANCIAL ACCOUNTINGTable of ContentsAnswer to Question 1:.....................................................................................................................2Answer to Question 2:.....................................................................................................................6Answer to Question 3:.....................................................................................................................8Requirement i:.............................................................................................................................8Requirement ii:..........................................................................................................................10Requirement iii:.........................................................................................................................11Answer to Question 4:...................................................................................................................14Answer to Question 5:...................................................................................................................15References:....................................................................................................................................18
Answer to Question 1: Financial accounting Name of the University Name of the student_2

2FINANCIAL ACCOUNTINGAnswer to Question 1:To, ChairpersonInternational standard accounting board30 cannon street, London- EC4M 6XH, United KingdomDate: 15th September, 2017Subject: Recommendation and guidance for improving the effectiveness of communication andinformation in the financial report.Sir,As an investor, I intend to make some plan regarding the IASB proposition regarding theeffectiveness of information contained in the financial report. I have been consideringundertaking investments in two organizations listed on ASX that is Westpac and ANZ. With thisinterest, I have compared and reviewed annual report of current year of both organizations.While going through the report, I have discovered some areas that can be improved for betterpresented and disclosure of relevant information. Preparation of financial report is regarded ascomplex task by the preparers and sometimes it is considered by investors or users thatinformation’s have not been sufficiently depicted. There has been overall improvement in thequality of corporate reporting, even though there exist opportunities for making furtherimprovement. Creation of good linkage of information in annual report goes beyond theexplanation of nature of linkage and highlighting the related disclosure location (Pacter, 2017).
Answer to Question 1: Financial accounting Name of the University Name of the student_3

3FINANCIAL ACCOUNTINGPoor presentation of financial data drowns the valuable information contained in theannual report and that is sometimes not understood by investors. All this prevent investors andmake it difficult to take any feasible financial decisions. I have been able to ascertain the needfor making effective communication of information after going through the annual report ofANZ bank and Westpac. However, there exist some differences in the presentation ofinformation of both the organization. It’s been disclosed that in terms of both preparing financialreport and information disclosure, there is a need for standardization. I have well acquaintedmyself with the set of seven principles in section 2 of discussion paper that involves clear andsimple, entity specific, comparable, in an appropriate format, free from unnecessary duplicationand organized to highlight important matters (Luke, 2016). It has been ascertained after doing theanalysis of annual report for both the organizations that they comply with few principles andlacks on most of parts. Banks being financial institutions are required to make clear disclosure of credit andliquidity risks and perform the segmental analysis for easing investors in taking investmentdecisions. Renowned and reputed banks should disclose information in way that gives a clearpicture of their financial heath at glance that can only be obtained by adopting someeffectiveness principles that are lacking. There is no segmental analysis done by ANZ banks intheir annual report. On other hand, segmental analysis has been done by Westpac withconsistently defining segments. Segmental analysis has not been done by ANZ bank and there isno separate analysis. Furthermore, for strengthening the banking industry regulation, Basel isincorporated that is a inclusive set of reform measures. I have seen that there are separatedisclosures of requirements of Basel in the financial report. Credit risk and liquidity risks havenot been disclosed separately. However, little information regarding same was mentioned in the
Answer to Question 1: Financial accounting Name of the University Name of the student_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
ACC514 | Financial Accounting Assignment
|20
|3742
|99

Assignment on Financial Accounting of ANZ bank
|20
|3435
|28

Financial Reporting Assignment IASB
|21
|1435
|87

Accounting and Financial Reporting Assignment
|21
|1568
|46

Financial Accounting -Assignment
|20
|3470
|31

Impairment Loss Allocation as per Weightage
|25
|3915
|155