logo

(PDF) Accountability and board functionality

   

Added on  2021-05-27

2 Pages857 Words32 Views
 | 
 | 
 | 
Solution-1LetterTo,The IASBSubject: Discussion on the lack of effective communication in the annual reports of CBA and NABDear Sir,While reading the 2017 annual reports of CBA and NAB, I came across certain things which makes theineffective communication of the above stated annual reports, this leads to more time taken by me inanalyzing the reports. These lacking principles of effective communication are as below ("Snapshot:Disclosure Initiative—Principles of Disclosure", 2018):In the annual report of NAB (National Australian Bank) ("Annual Financial Report 2017", 2018)(a)Free from unnecessary duplication – the information presented should be free from duplicatedinformation, so that the investors can keep an eye on the important information without wastingmuch of their time. However, in the given annual report there are lots of information which areduplicated or unnecessary, for example, the report of directors which is 54 pages long and doesnot contains much required information, this report can be ignored and the management shouldprovide only the relevant information without providing the whole report. Similarly, themanagement has provided the full remuneration committee report without giving its synopsis orsummary. These reports can be ignored and only meaningful summary can be provided.(b)Organized to highlight important matters – The information presented should be well presentedand organized so that the information can be easily read. However, the stated annual reports lackson this area. The information presented does not contain proper headers specifically in financialreports and the reports are also not in good sequence. Notes are not in proper sequence and arenot properly numbered.(c)Clear and simple – The presented information can be made simple and more understandable withthe help of pie charts and graphs, as these pie charts and graphs are more easily understandableand has a long lasting impact on the users. However, in the annual report of NAB, this graphicalpresentation is missing. In the annual report of CBA (Commonwealth Bank of Australia) ("Annual Report 2017", 2018)(a)Free from unnecessary duplication – Similar to above, the annual report of CBA also containssome unnecessary information. For example, the financial statements contains the details of yearended on 30 June 2015 as well. Whereas the companies are required to present the informationfor one comparative year only i.e. the CBA is required to present the information for year ended30 June 2017 and 30 June 2016 only.(b)In an appropriate format - The information presented should be in an appropriate and commonformat prescribed. However, the income statement presented is not in the format as prescribed byAustralian Accounting Standard Board. As per the prescribed format, the income statements
(PDF) Accountability and board functionality_1

End of preview

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

Related Documents
Financial Accounting Questions and Answers - PDF
|19
|1680
|57

Effectiveness of Financial Statement
|21
|2452
|19

[PDF] Financial Accounting : Assignment
|5
|1086
|407

Answer to Question 1: Financial accounting Name of the University Name of the student
|20
|1321
|243

Improving the Effectiveness of Disclosure of Financial Information
|17
|3684
|68

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