Comprehensive Analysis of Accounting Challenges and Solutions for ANZ

This report examines the various accounting issues encountered by ANZ Bank, including challenges related to corporate social responsibility (CSR), ethical and legal considerations, technological advancements, employee benefits, and financial costs. It delves into how CSR issues, particularly those aligned with Global Reporting Initiative Principles, impact the bank's reporting and stakeholder interests. Ethical misconduct and legal compliance are also addressed, alongside the technological glitches affecting the bank's internet banking platform and the computation of employee benefits. The report further highlights financial cost issues, such as losses and data errors, which contribute to the bank's financial risk. Ultimately, the report provides recommendations for ANZ Bank to enhance its CSR activities, appoint ethical and legal advisors, and improve its technological infrastructure and employee training to foster more effective accounting practices. This analysis aims to offer insights into the complexities of modern accounting within a large financial institution and proposes actionable strategies for improvement.

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Executive summary
In the present era, there is a rise in the use and complexity of accounting computation which is
evident with the issues that are faced by the company like ANZ in the market. The aim of the
report is to talk about the different theories and concept that are applied to ANZ with the
identification of the major issues faced by the company related to the accounting. These issues
are explained with their impact on the accounting practice of the company. Though the company
is working to improve the same and the recommendation has been given to bring the
improvement in the accounting system of ANZ.

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Contents
Introduction......................................................................................................................................3
Background of the company............................................................................................................3
Corporate social responsibility........................................................................................................4
ANZ Bank liable for corporate social responsibility...................................................................4
Corporate social responsibility issues affect accounting.............................................................5
Ethical and legal issues....................................................................................................................6
Technological issues........................................................................................................................7
Employee benefit issue....................................................................................................................8
Financial cost issues........................................................................................................................8
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
The objective of the report is to define and analyse the latest accounting models and accounting
theories, and evaluating the manner in which these models and theories are implemented to an
allotted condition. The conditions, which have argued over here is main issues related to
accounting that are faced by a chosen organisation. ANZ Company is selected for a better
assessment of the accounting issues. The report mainly focuses on the issues such as issues of
corporate social responsibility (CSR), technical issues, moral issues, conservational issues, issues
related to benefits of employees and other issues, which can influence the accounting of an
organisation. This report states the issues with the effects on the corporation. At last, the
recommendations to an organisation regarding the accounting issues are addressed that may
assist the organisation to perform the accounting in a proper way.
Background of the company
ANZ bank is one of the top biggest banks in the world. The business of ANZ bank works for in
excess of five Million clients. The company has 247 billion dollars. The company hires in excess
of 28000 persons and are presented in the key marketplaces of New Zealand and Australia. ANZ
bank also expands business in Asia, the United Kingdom, and the USA. The company makes
efforts to attain and continue the high norms of corporate governance and the disclosures (ANZ,
2018). ANZ bank helps in creating the bright future of the stakeholders, team, clients, and other
groups. Further, this report contains the main accounting issues that are faced by an organisation.

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Corporate social responsibility
The corporate social responsibility (CSR) refers to an independent business model. The
corporate social responsibility assists the organisation to become communally liable to itself, the
shareholders, and communal (Trotman and Carson, 2018). This is required by all the
organisations to have knowledge in respect of the responsibilities towards corporate social
responsibilities (CSR) and to accomplish that so that they may handle the functions related to
business in a proper way. It is stated by corporate social responsibility that each organisation that
is running the business functions is accountable to perform for the best interest and advantages of
the societies.
ANZ Bank liable for corporate social responsibility
ANZ Bank’s approach to CSR makes focus on the chances and difficulties most appropriate to
the businesses. Every year the company sets aims and develops the work programmes about
concerned difficulties for the sectors, consumers, workers and communities. It includes rendering
liable goods and services for the clients, making the diverse and complete staff and enhancing
commercial knowledge and ability in the groups.
ANZ bank influence the atmosphere in a direct or indirect manner and the actions perform the
works, which may influence the living of groups and the societies in Australia due to which they
become the liable to the society (Pilbeam, 2018). Furthermore, an organisation is based on the
societies for the works or functions that are exercised by them because of that they remain
accountable for the societies.

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Corporate social responsibility issues affect accounting
The corporate social responsibility issues, which are mainly faced by an organisation, are related
to the Global Reporting Initiative Principles. These Global Reporting Initiative Principles are
used by an organisation when making the corporate social responsibility reporting for an entity.
They render the Sustainability Reporting Structure ‘of which the Sustainability Reporting
Guidelines are involved, which render the guidelines to an organisation for a disclosure of the
sustainability performances and proposes the shareholder's proper data. This mainly involves the
eleven doctrines that are needed to be adopted by an organisation that involves appropriateness,
significance, correctness, comparability, transparency, and background (Sedláček, 2016). The
report presented by an organisation involves all the standards and the organisation has adopted
by this is not supported in the report showed by an organisation that the interest of investors in an
organisation.
ANZ Bank has also taken various initiatives to establish improvements in the societies. This
includes the development of enhanced services and new goods with the utilisation of modern
technologies. The issue related to corporate social responsibility may influence the dividend
amount, which an organisation requires to make payment to the stakeholders of an organisation.
The reason is that the expenditures of an organisation for keeping the sustainability would
enhance that will certainly make the influence on the organisation (ANZ, 2018). Additionally,
the organisation is looking for the land however is unable to attain the permission because of
communities and societies living at a location that would influence the accounting of
organisation, as they would not be capable to create the proper profits out of this.

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Ethical and legal issues
The Ethical and legal fundamentals have a major part to play in the company. Australia and New
Zealand Banking group face various legal issues ethical issues, which influence the accounting
of an entity. ANZ bank removed more than two hundred workers involving top-level managers
for misconduct or unlawful activities (Hirschey, 2016). Australia and New Zealand Banking
group adopted toughest approaches or strategies to punish the workers and the managers for
misbehaviour and to end the ethical issues. The company terminates the staff while they conduct
the wrong things, which are clearly harmful to the customers or others. In last years, Australia
and New Zealand Banking group had removed the approximately ten top-level managers or
authorities of the company for wrongdoings and issues related to misbehaviour. ANZ Bank
makes a commitment to hold the individuals to account (Duran, 2018).
ANZ bank appoints the managers, who are responsible for the aim to make the legal relationship
and ethical relationship between the clients. Australia and New Zealand Banking group also
ensure that the company make use of the executive agreements and debts contracts, which are
used with the target to properly manage the relations. Further, in nearly sixty public hearings, the
investigation has shown systematic issues in the arrangement of incentives, which are used to
reward the employees for dealing of the goods to individuals who did not require them or for
whom it is not possible to afford them. The legal claims are addressed by one company on other
which leads to increase conflicts and that wherever to include company due to which goodwill
get influenced.

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Technological issues
In the present scenario, technology is improving and creating an effect on the working and
operations of the company. Most of the companies are dependent on the technology for their
accounting system. The use of technology in the accounting sector is increasing for a
computerised system which helps the company in tracking and recording the financial
transactions (Coyne, 2018). This helps the company in to improve the operational efficiency to
accomplish the compliance related to the regulatory, financial reporting and its management.
ANZ Company makes use of the technology not only in offering the services but also in
conducting the accounting operations through the Internet. Recently, it was found that ANZ’s
company is dealing with the technology glitch as there is the wave of the tech problem analysed
that create the impact on the internet banking platform (Pearce, 2018). This leads to the impact
on the ANZ’s internet banking, goMoney, Grow app and other ANZ app which are affected.
These issues made the company to identify the system where the company is lacking. This made
the company discover that they have technical issues in their systems.
The expert of the company worked when they identified the issues so that they can restore their
system. The whole issues include that the company is dealing with the issues that affect the
accountants as they won’t be able to identify the current day dealing which is done and this
huddle the recording and tracking of the transactions (Frost, 2018). Thus, these issues affect the
accounting system and lead to the errors which lead to the more chances of the financial
misconduct by the companies. In addition to this, the accountant of the company affects their
work and finds the burden when the technological issues get over. Moreover, in such issues,
there are many issues that might be faced by the company related to the security of the data. The
software that is majorly used by the company needs the training and skills of the staff members

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in order to be effective enough. If in case the employees of the company are not updated with the
technology then this will leads to the incorrect accounting data for the company. Thus, this will
create an impact on the accounting of the company (Gitman, Juchau and Flanagan, 2015). It is
suggested to the ANZ bank to ensure that their system is working effectively and they are able to
provide the training to the employees with the motive to enhance their skills and for effective
accounting practice within the company.
Employee benefit issue
In the competitive atmosphere, most of the company ensure that they offer different benefits to
their employees so that they can stay with the company for a longer period of time. ANZ
Company offers different rewards and reimbursement to their employees (Sessoms, 2018).
Employee benefit computation is one of the major issues which are faced by ANZ Company.
Employee benefit is categorised as long term as well as short term benefit which are offered by
the company to their employees. The company face the issues related to the computation of the
deferred compensation which is considered as on the long term employee benefit. The
computation of the employee benefit is done for the twelve months or after the end of the period.
The issues in the computation can lead to a wrong entry in the accounting of the company.
Financial cost issues
ANZ bank is dealing with the financial cost issues as the federal higher education accreditation
body classed CA of ANZ as the financial risk after the professional body faced the loss for the
two continuous issues (Tadros, 2018). Australian Financial review found that up to six staff dealt
with the chop at CA ANZ as CEO Rick Ellis who seeks to reduce the costs at an organisation

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that has lost more than $15 million in the last two financial years. Moreover, ANZ received the
adverse rating on the errors made them related to the data provided to some students. The
company provided incorrect information related to their grades (Tadros, 2018). All these
elements show that the company is dealing with the issue of financial risk which will directly
create an impact on the accounting of the company. The reason behind the loss of the company is
high cost and its operations which affect the financial estimation and leads to the rise in the risk
of the company.

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Recommendations
 It is recommended to the company to enhance the activities of CSR as it is their moral
responsibility and this will improve the brand value in the market.
 Australia and New Zealand Banking group should appoint an ethical and legal advisor
who can help in dealing with the ethical issues.
 It is essential for the company to appoint a technical and accounting expert who can
guide the company in the right manner. Moreover, they should apply the agency theory
which assists in protecting the interest of the agents and principles.

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Conclusion
In the end, it can be concluded that ANZ Company is dealing with different accounting issues
and the major issues which are discussed include CSR (corporate social responsibility)
technological issue, ethical issue, employee benefits issue and financial cost issue. All these
issues are explained in the report as these issues create an impact on the accounting activities and
their computation related to the company. At the end of the report, the recommendations related
to the company has been suggested which contribute in enhancing and improving the accounting
practices for the effective success of the ANZ group in the near future.