Report: Financial Analysis of Commonwealth Bank's Performance

This report provides a financial analysis of the Commonwealth Bank of Australia, examining key aspects such as major stakeholders, accounting practices, and corporate social responsibility initiatives. The analysis focuses on the bank's financial statements, including the basis for their preparation, measurement methods for assets and liabilities, and the adoption of Australian Accounting Standards. Major stakeholders like HSBC Custody Nominees, JP Morgan Nominees, and Citicorp Nominees are identified, along with their shareholding percentages. The report also details the bank's approach to asset and liability measurement, emphasizing historical cost and fair value accounting. Additionally, it outlines the bank's corporate social responsibility efforts, emphasizing customer experience, community support, employee well-being, and ethical business practices. The report references several academic sources to support its findings and conclusions, offering a comprehensive overview of the bank's financial performance and stakeholder relations.

Commonwealth Bank
• The financial statement of the companies are an important tool for the
assessment of the financial data of the company.
• The financial information available to the investors of the company is one of
the important tool for the assessment of the financial performance of the
company.
• The financial information of the Commonwealth Bank of Australia was taken
into consideration and the financial data of the same has been undertaken.
• The key aspects like the major stakeholders of the company and the
accounting aspects of the financial data of the company such as the
preparation and the assumption taken while preparing the financial
statements are the key matters (Dudin et al. 2015).

Major Stakeholders of the
Company
• The major stakeholders of the company outlined are given below is the data collected
for the major stakeholders of the company is that from the financial statements and
report of the company (Robinson et al. 2015).
• The HSBC Custody Nominees (Australia) limited is one of the major shareholder of the
company holding about 21.75% of the company’s total share.
• The second largest shareholder of the company is the JP Morgan Nominees Australia
Limited that holds around 10.79% of the total shareholding pattern of the company.
• The Citicorp Nominees Ply Limited is also having a major stake around 5.84% of the
company.
• BNP Paribas Noms Ply Limited and National Nominees Limited are some of the other
key important shareholders of the company holding about 3.46% and 3.28% of the
total shareholding of the company(Ball, Li and Shivakumar 2015).

Basis for Preparation of
Financial Statements
• Following the Australian Accounting Standards.
• Assets and Liabilities were measured at historical cost.
• Derivatives and Certain Assets and Liabilities were measured at fair value accounting
(Minnis and Sutherland 2017).
• ASIC Corporation Instrument 2016/191 was used in accordance for rounding of amounts.
• The operating segment for the company is based on the management and the group
structures.
• The accounting policies of the companies have remained the same as the last year.
• The performance of the subsidiaries companies are reported on the basis of the
consolidated financial reports.
• Acquisition Method will be used in the case of a business combination.

Measurement Methods
• The measurement methods used by the company used by the company for their
assets and liabilities of the companies are:
• Assets and Liabilities of the company are recorded by the use of historical method
(Wang 2014).
• The current assets and liabilities of the company including derivatives were measure
at fair value.
• The assets of the company are for primary use of the business and not meant for
sale or any kind of investment product. The company uses the assets till the end life
of the assets and then scraps the assets when the productive capacity of the assets
falls (Yohn 2015).
• The derivatives instruments or the hedging tools are very complex and needs to be
reassessed frequently as the value for the same changes very frequently.

Corporate Social Responsibility
• Emphasizing and increasing customers better experience
• Supporting and Empowering the community at large
• Financial Inclusion to the required customers.
• Engaged and a healthy workforce
• Employee Well Being
• Conduct and Culture guidelines
• Acting towards human rights.
• Responsible and an efficient business relationship
• Transparency in the field of taxation (Tai and Chuang 2014).

Reference
• Ball, R., Li, X. and Shivakumar, L., 2015. Contractibility and transparency of financial statement information
prepared under IFRS: Evidence from debt contracts around IFRS adoption. Journal of Accounting
Research, 53(5), pp.915-963.
• Dudin, M., Prokofev, M., Fedorova, I., Frygin, A. and Kucuri, G., 2015. International Practice of Generation of the
National Budget Income on the Basis of the Generally Accepted Financial Reporting Standards (IFRS).
• Minnis, M. and Sutherland, A., 2017. Financial statements as monitoring mechanisms: Evidence from small
commercial loans. Journal of Accounting Research, 55(1), pp.197-233.
• Robinson, T.R., Henry, E., Pirie, W.L., Broihahn, M.A. and Cope, A.T., 2015. International Financial Statement
Analysis, (CFA Institute Investment Series). John Wiley & Sons.
• Schwartz, M.S., 2017. Corporate social responsibility. Routledge.
• Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility. Ibusiness, 6(03), p.117.
• Wang, C., 2014. Accounting standards harmonization and financial statement comparability: Evidence from
transnational information transfer. Journal of Accounting Research, 52(4), pp.955-992
• Yohn, T.L., 2015. Research on the use of financial statement information for forecasting profitability. Accounting
& Finance.