Equity and Liabilities Items and Movements 15

Equity and Liabilities Items and Movements 1
Abstract
The discussion is divided into two parts, A and B. Part A presents a comprehensive
analysis of items listed in both liabilities and equity sections of Commonwealth Bank of
Australia (CBA) and Westfarmers financial statements. All listed items in each Company’s
liability and equity sections are explained and followed by the comparison of the movements in
these items. Part B discusses the concepts of small and large proprietary company and reporting
entity and explains the implication of a firm falling in either of the three classifications.

Equity and Liabilities Items and Movements 2
Table of Contents
Abstract............................................................................................................................................1
Introduction......................................................................................................................................3
Commonwealth Bank of Australia...............................................................................................3
Westfarmers Limited....................................................................................................................4
Liability and Equity Items and Movements.....................................................................................4
Equity Items:................................................................................................................................4
Commonwealth Bank of Australia: Equity Items....................................................................5
Westfarmers Limited: Equity Items.........................................................................................5
Explanation of Items Listed in Equity......................................................................................6
Movements of Items under Equity...........................................................................................7
Liabilities Items............................................................................................................................8
Commonwealth Bank of Australia: Liabilities Items...............................................................8
Westfarmers Limited: Liabilities..............................................................................................9
Explanation of Items Listed in Liabilities..............................................................................10
Movements of Liability Items................................................................................................12
Advantages of Sources of Finance................................................................................................13
Part B: Concepts............................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................15

Equity and Liabilities Items and Movements 3
Introduction
The introduction below gives an overview of each chosen company for this discussion:
Commonwealth Bank of Australia
The CBA, also called CommBank or CBA was established under Commonwealth Bank
Act in the year 1911 and began its operations the following year, 1912, after its empowerment to
undertake both general banking alongside savings business. Today, CommBank has grown to a
large enterprise with over 52000 workers and 800,000 shareholders. CBA offers a full array of
financial services to support every Australian to build as well as manage their finances
effectively. The CBA remains an integrated services’ top provider that include retail, premium,
business and institutional banking, insurance, superannuation, funds management, investment
and share-broking services alongside products. CBA has businesses across the NZ, Asia, the UK,
and the US. CommBank remains the largest listed corporation on the ASX as of 2015 August
with such brands as Colonial First State Investment, Bankwest, ASB Bank (NZ), CommSec as
well as CommInsure. It is largest Southern Hemisphere bank.
Westfarmers Limited
Westfarmers Limited was established in the year 1914 as cooperative to offer services
and merchandize to the farmers of Western Australia and got listed on ASX in 1984 and has
grown into a major retail conglomerate. It is now an Australian conglomerate with its
headquarter in Perth, Western Australia. It has a predominant interest in NZ and Australian
retail, fertilizer, chemicals, coal as well as industrial and safety products. It had more than 65.98
billion AUD in 2016 trading period, making it the biggest Australian Company in terms of
revenue, surpassing BHP and Woolworths. It the biggest private employer in Australia with
almost 200,000 workers and more than 490,000 shareholders. It remains a diverse business

Equity and Liabilities Items and Movements 4
operator which covers outdoor living and home improvements; apparel and general merchandise;
industrial division with business in energy and fertilizer, chemicals, and industrial alongside
safety products as well as officer supplies.
Liability and Equity Items and Movements
The analysis of equity and liability items listed in the annual report is performed
covering listed items under equity and liability sections of the report and their respective
movements across the years of comparison.
Equity Items:
This section provides a list of items under the equity section of the Annual report and the
comprehension of each item as a concept and how they have moved between the three years of
comparison.
Commonwealth Bank of Australia: Equity Items
Group Bank
Items 30/06/2018 30/06/2017 30/06/2018 30/06/2017
Shareholders’ Equity
Ordinary Share Capital 37270 34971 37533 35262
Reserves 1676 1869 2568 2556
Retained Profits 28360 26274 23819 22256
Shareholder equity attributable to
equity holders of the bank
67306 63114 63920 60074
Non-controlling interests 554 546 - -
Total shareholders’ equity 67860 63660 63920 60074