Analysis of NAB and ANZ Group based on Owners' Equity, Cash Flow and Other Comprehensive Income Statement

Corporate Accounting 1
CORPORATE ACCOUNTING
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Corporate Accounting 2
Executive Summary
The report presents the analysis of NAB and ANZ Group which are amongst the largest
financial institutions in Australia. Based on the owners’ equity, cash flow and other
comprehensive income statement, it was found out that ANZ Group has been performing
relatively better in terms of equity management. In fact, the analysis showed that ANZ Group
is in a better position to manage its cash and to generate more cash flow from its operations in
comparison to NAB.

Corporate Accounting 3
Table of Contents
Executive Summary...................................................................................................................2
INTRODUCTION......................................................................................................................4
OWNERS EQUITY...................................................................................................................5
Items Reported on NAB and ANZ Group Statement of Equity.............................................5
Analysis the Debt as well as Equity Position of NAB and ANZ Group................................6
CASH FLOWS STATEMENT..................................................................................................7
Items Reported in NAB and ANZ Group Cash Flows Statements........................................7
Analysis of NAB and ANZ Group based on Cash Flow Statement.......................................9
Analysis of NAB and ANZ Group.......................................................................................10
OTHER COMPREHENSIVE INCOME STATEMENT........................................................10
Items Reported In Other Comprehensive Income Statement...............................................10
The reason why the items reported in other comprehensive income statement are not
recorded in the income statement.........................................................................................11
Analysis of the Other Comprehensive Income between NAZ and ANZ Group..................11
Whether the Other Comprehensive Income Items ought to be included while assessing
Managers’ Performance........................................................................................................12
ACCOUNTING FOR CROPORATE INCOME TAX............................................................12
The Tax Expenses Reported in NAB and ANZ Group Latest Financial Statements...........12
Effective Tax Rate for the Two Companies.........................................................................12
Comments on the Deferred Tax Assets/Liabilities...............................................................13
Whether There Was an Increase or Decrease in Deferred Tax Assets or Liabilities...........13
Cash Tax Amount for Both Companies...............................................................................14
Cash Tax Rate for Both Companies.....................................................................................14
The reason behind cash tax rate being different from book tax rate....................................14
Conclusion................................................................................................................................14

Corporate Accounting 4