Financial Accounting: Analysis of Commonwealth Bank of Australia's Annual Report

Running Head: FINANCIAL ACCOUNTING 0
Financial Accounting

FINANCIAL ACCOUNTING 1
Table of Contents
Introduction................................................................................................................................2
Dominant Section.......................................................................................................................2
Director’s Report........................................................................................................................2
Auditor’s Report.........................................................................................................................3
The auditors of the Commonwealth Bank of Australia are the Price Waterhouse and Cooper’s
firm.............................................................................................................................................3
Summary.................................................................................................................................3
Sales Analysis............................................................................................................................3
Net cash flow Analysis...............................................................................................................4
Retained Profits..........................................................................................................................4
Analysis of Ratios......................................................................................................................4
References..................................................................................................................................9

FINANCIAL ACCOUNTING 2
Introduction
Commonwealth bank of Australia is an Australian multinational manage an account with
organizations crosswise over New Zealand, Asia, the United States and the United Kingdom.
The assortment of the budgetary administrations are given by the bank, for example, retail,
business and institutional keeping money, administration of assets and superannuation, office
of the protection a venture and broking administrations. The bank was subsidized in the
December 1911, having central station at Darling harbor, Sydney and Australia. The present
income of the bank is $26.004 billion. The bank was recorded on the stock trade in the year
1991 (Commonwealth Bank, 2014).
Dominant Section
The most dominant section of the report is the sustainability and the CSR policies which are
followed by the Commonwealth bank of Australia and the financial statements which reflect
the financial position of the company in comparison to its previous year and therefore, these
two areas rule the entire annual report. However the director’s report and the auditor’s report
are also beneficial from the point of view of the stakeholders and the investors (Abbott,
2018).
Director’s Report
The director’s report is basically divided into the different major sections which determine
the principal activities, consolidated profit, dividends and review of the operations.
Furthermore, the director’s report also talks about the changes in the state of affairs and the
environmental reporting and also throws the light on the business strategies and the future
developments (Brzezinski, 2016).

FINANCIAL ACCOUNTING 3
The major Directors of the Commonwealth Bank of Australia are outlined below
Catherine Livingstone, who was appointed on January 1st 2017, Ian Narev the chief
executive, Shirish Apte, Sir David Higgins and Launa Inman the futher board of the directors
(Commonwealth Bank, 2014).
Auditor’s Report
The auditors of the Commonwealth Bank of Australia are the Price Waterhouse and Cooper’s
firm.
In the opinion of the auditor and to the best of their knowledge and belief, according to the
PWC in the position of the auditor believes to have
a) No problems in terms of the independence of the auditor under the Corporations Act
2001 in the motion of the audit and
b) No contravention of the codes and the ethics of the professional conduct in
association of the audit (Leyland, 2016).
Summary
The Auditors report determines the view of the auditor on the fact that the company has
complied with all the necessary accounting standards which needs to be implemented and
followed correctly and that the financial statements are in accordance with the schedules and
the accounting policy.