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Financial Accounting -Assignment

   

Added on  2020-03-23

20 Pages3470 Words31 Views
Running head: FINANCIAL ACCOUNTING Financial AccountingName of the Student: Name of the University: Author’s Note:

1FINANCIAL ACCOUNTINGTable of ContentsAnswer to Question No 1...........................................................................................................2Answer to Question No 2...........................................................................................................6Answer to Question No 3...........................................................................................................9Requirement (i)......................................................................................................................9Requirement (ii)...................................................................................................................10Requirement (iii)..................................................................................................................11Answer to Question No 4.........................................................................................................15Answer to Question No 5.........................................................................................................17Reference List..........................................................................................................................19

2FINANCIAL ACCOUNTINGAnswer to Question No 1To, The ChairpersonInternational Standard Accounting Board 35 Mayo Street, London- EX5CM 7HX, United Kingdom Date: 17th September 2017Subject: Guidance and recommendation for enhancing the communication and informationeffectiveness in the financial report Respected Sir, Being an investor, I propose to construct certain plans in regards to the IASBproposition in accordance to the efficiency of the information that is available within thefinancial report. I have been looking to make certain investments in Westpac and ANZ,which are two companies that are listed in the ASX. Due to this interest, I have assessed andcompared the annual report of the present accounting year of both the companies. During thetime of assessing the report, I have observed certain areas that can be developed for anenhanced presentation and disclosure of the precise information. The construction of thefinancial report is considered as intricate job by the one who prepares the report and in certaincases it is considered by the users and the investors that this information may not have beenexplained in a precise manner. There has been a development in the corporate reportingquality even when there lays an opportunity for making additional developments. Theconstruction of a proper connection of information within the annual report has gone ahead of

3FINANCIAL ACCOUNTINGany description with respect to the character of linkage and underlining the associateddisclosure region. The improper disclosure of the financial information wipes out the information that isvaluable and which are contained within the annual report and this aspect in certain cases isnot understood properly by the investors. These are the factors that restrict the investors andmake it tough to undertake any financial decisions that are feasible. I have been able toestablish the requirement for making an efficient interpretation of the communication afterevaluating the annual report of Westpac and ANZ Bank. Conversely, there is an existence ofcertain differences in the disclosure of the information of both the companies. It has beenrevealed that with respect to the construction of the financial statements and the disclosure ofinformation of both the companies, there is a requirement for generalization. I have wellmade myself well informed with respect to the seven principles available in Section 2 of theexplanation paper that associates simple and clear, comparable, entity distinct, in a suitableformat, independent from irrelevant replication and constructed to focus on the essentialmatters (Pelger, 2016). It has been explained after assessment of the annual report forWestpac and ANZ Bank that they are in compliance with certain principles but has certainfaults in most of the sections. The banks being a part of the financial institutions are needed to undertake a precise liquidityand credit risk disclosure and undertake the sectional evaluation for moderating the investorsto take decisions with respect to the investment. The well known and the reputed banks needsto reveal their information in such a manner so that it provides a pure image of the financialcondition within a glance that can only be gained by implementing certain efficient principlesthat are absent. There is no segmental evaluation undertaken by ANZ Bank within theirfinancial report. Furthermore, segmental evaluation has not been undertaken by Westpac bysustainably explaining the segments. Segmental evaluation has not been undertaken by ANZ

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