ACC 303: Commonwealth Bank Accounting Analysis & Governance

This report analyzes the financial statements of Commonwealth Bank in 2018, focusing on its funding structure, corporate governance policies, and solvency. It identifies that the major source of funding for the group is debt, with long-term debt at $140,993 million. The report also examines the bank's corporate governance policies, referencing specific pages in the annual report where governance priorities, responses to the ARPA Prudential inquiry, and the roles of the audit committee are detailed. The analysis emphasizes the importance of transparency, risk management, and compliance to ensure a strong framework of corporate governance, enabling users of financial statements to make informed decisions. Desklib provides access to similar past papers and solved assignments for students.

Accounts
In the present analysis, the Group Company that has been chosen is Commonwealth and the
year of analysis of company report is 2018.
Question 3
Under general parlance, every company is funded by a mixture of debt and equity. Further,
the equity comprise Shareholder paid up capital and reserves of the company as earned over
the years. Further, as per balance sheet of June, 2018 it can be seen that the amount of long
term debt in the company $ 140, 993 million and the loan capital stands at $ 22,992 Million
while the value of equity of the company is $ 67,860 Million. Thus, it can be seen that major
source of funding for the group is debt.
The owners of the company are generally the ordinary shareholders of the company. In the
present case the major shareholders are HSBC Custody Nominees (Australia) Limited, JP
Morgan Nominees Australia Limited and other. (Refer Excel for detailed information on top
20 shareholders).
Question 4
Yes, the published set of group financial statement reveal the company’s policy on corporate
governance (refer page 86-88 of Annual Report for June, 2018) where in the governance
priorities have been established along with acknowledgement of shortcomings founded by
ARPA Prudential inquiry and has shown its commitment to make the changes that shall be
required for making the company more accountable and develop a customer focussed culture
and enhance the management of risk.
Yes, the policy regarding the roles and function of audit committee has been detailed in the
report (refer page 87-88 of Annual Report for June, 2018).
For sustainability and solvency also comments have been made in the report as seen in
various pages of the Annual Report for June, 2018.
The above reporting has been done to ensure transparency, management of risk, compliance
with norms and laws and to ensure a strong framework of corporate governance so that users
of financial statement can understand the company better and make a rationale choice.