HI5020 Corporate Accounting: Financial Analysis of Banking Groups

This report provides a comparative financial analysis of Westpac and ANZ Banking Groups, two public limited companies listed on the Australian Securities Exchange (ASX), applying corporate accounting principles. It delves into key financial aspects such as owner’s equity, effective tax rate, and cash tax rate, drawing insights from the cash flow statements of both organizations. The analysis aims to highlight the importance of corporate accounting in understanding business performance and financial health, referencing academic literature to support its findings and offering a structured overview for readers to grasp the nuances of financial analysis in the corporate sector.

Table of content
Introduction
Owner’s Equity
Cash Flow Statement
Effective Tax Rate
Cash tax rate
Conclusion

Introduction
 Corporate Accounting is a concept of developing
accounting concepts and rules as per business
organization conceptual framework.
 Development of facts, norms and accounting
principles as per business accounting demands, is
known as corporate accounting.
 Organizations used are Westpac banking group and
ANZ Banking Group.
 This presentation will depict about business and
financial analysis through owner’s equity, cash tax
rate, effective tax rate and comparative analysis
related to cash flow activities.

Owner’s Equity
- Owner’s equity can be taken as shareholder’s
equity which includes following measurable
items:
- Treasure Stock
- Reserves
- Retained Earnings
- Patent entity interest
- Non-controlling interest
- Hedging Investments.

Comprehensive Profit and LOSS
statement

Effective Tax Rate

Cash tax rate

Conclusion
It is concluded through this presentation that
comparative analysis has been made between
two companies’ named Westpac banking and
ANZ banking groups.
It has described comparative assessment
related to effective tax rate, cash tax rate and
owner’s equity.
 Through this presentation analysis readers will
be able to recognize and understand the
importance of corporate accounting in business.

Reference
Gordon, E.A., Henry, E., Jorgensen, B.N. and Linthicum, C.L.,
(2017) Flexibility in cash-flow classification under IFRS:
determinants and consequences. Review of Accounting
Studies, 22(2), pp.839-872.
Hall, B.H., Moncada-Paternò-Castello, P., Montresor, S. and
Vezzani, A., (2016) Financing constraints, R&D investments
and innovative performances: new empirical evidence at the
firm level for Europe.
Khan, S. and Bradbury, M.E., (2016) The volatility of
comprehensive income and its association with market
risk. Accounting & Finance, 56(3), pp.727-748.
Law, J., (2018) A Dictionary of Finance and Banking. UK:
Oxford University Press.