Accounting Financial Analysis Report: Course ID and Analysis

This comprehensive financial analysis report delves into the Australian financial services industry, examining its key components and performance indicators. The report commences with an overview of the industry, analyzing market trends, including the ASX, inflation rates, and economic growth, and includes the analysis of the external issues faced by the industry. It further explores the roles and responsibilities of various financial participants, such as banks, credit unions, insurance companies, and financial advisors. The report also investigates critical issues, including conflicts of interest within the banking sector and ethical considerations surrounding payday loans and credit activities. The report also touches upon the case of BMW's breach of lending provisions and addresses the ethical concerns associated with financial practices. The report concludes with a reference list.

Running head: ACCOUNTING FINANICIAL ANALYSIS REPORT
Accounting Financial Analysis Report
Name of the Student
Name of the University
Authors Note
Course ID

1ACCOUNTING FINANICIAL ANALYSIS REPORT
Table of Contents
Section 1: The Australian Financial Services Industry..............................................................4
Activity 1a..................................................................................................................................4
Answer to I)................................................................................................................................4
Answer to II)..............................................................................................................................4
Activity 1b..................................................................................................................................5
Answer to i)................................................................................................................................5
Answer to ii)...............................................................................................................................7
Activity 1c..................................................................................................................................9
Activity 1d................................................................................................................................12
Answer i)..................................................................................................................................12
Answer to ii).............................................................................................................................13
Section 2...................................................................................................................................13
Activity 2 A:.............................................................................................................................13
Answer to II:............................................................................................................................13
Answer to III:...........................................................................................................................14
Activity 2 B:.............................................................................................................................14
Answer to 1:.............................................................................................................................14
Answer to II:............................................................................................................................15
Answer to III:...........................................................................................................................15
Activity 2 C:.............................................................................................................................15

2ACCOUNTING FINANICIAL ANALYSIS REPORT
Answer to 1:.............................................................................................................................15
Answer to II:............................................................................................................................16
Answer to III:...........................................................................................................................16
Answer to IV:...........................................................................................................................16
Activity 2 D:.............................................................................................................................16
Activity 2 E:.............................................................................................................................17
Answer to I:..............................................................................................................................17
Answer to II:............................................................................................................................17
Answer to III:...........................................................................................................................17
Answer to IV:...........................................................................................................................17
Answer to V:............................................................................................................................18
Section 3: Sustainability Issues for the Financial Services Industry......................................18
Activity 3a................................................................................................................................18
Activity 4/5 A...........................................................................................................................21
Activity 4/5 B...........................................................................................................................21
Answer to I:..............................................................................................................................21
Answer to II:............................................................................................................................21
Answer to III:...........................................................................................................................22
Answer to IV:...........................................................................................................................22
Activity 6:.................................................................................................................................23
Activity 7:.................................................................................................................................24

3ACCOUNTING FINANICIAL ANALYSIS REPORT
Answer to B:............................................................................................................................24
Answer to C:............................................................................................................................24
Reference List:.........................................................................................................................26

4ACCOUNTING FINANICIAL ANALYSIS REPORT
Section 1: The Australian Financial Services Industry
Activity 1a
Answer to I)
Peak
2007
Low Point
2009
Recovery
2017
i. ASX (All Ords) 6779 3296 5780
ii. Inflation % 2.33 -1.30 1.03
iii. Cash Rate % 6.75 3.75 1.50
iv. Variable Home
Loan Interest
Rate % (CBA)
7.94 5.23 5.34
v. $A v $USA 2522.1969 2517.9822 4.2147
vi. G.D.P.%
Economic
Growth(Yearly)
3.7 1.8 1.9
Answer to II)

5ACCOUNTING FINANICIAL ANALYSIS REPORT
Activity 1b
Answer to i)
CBA price chart
REA price chart

6ACCOUNTING FINANICIAL ANALYSIS REPORT
BHP price
Answer to ii)
External Issue Tick if applicable
CBA BHP REA
Political  Fiscal policy √
 Monetary policy √
 Legislation/Policies √
 Microeconomic reform eg.
Deregulation, reform of tax and
welfare systems, deregulation
of labour markets
√ √
 Trade policies/agreements √
Economic  GDP growth √ √

7ACCOUNTING FINANICIAL ANALYSIS REPORT
 Employment rates √
 Interest rates √
 Inflation rates √ √
Social/cultural  Use of technology √
 Changing tastes √ √
 Changing values √ √
Global  Trump/USA policies √ √
 Chinese economy/policies √
 EU/BriExit √
 Global commodity prices ie for
coal, iron-ore
√
 Low growth/GDP √ √
 Exchange rates √
 Trading partners/agreements √ √
Other

8ACCOUNTING FINANICIAL ANALYSIS REPORT

9ACCOUNTING FINANICIAL ANALYSIS REPORT
Activity 1c
Financial Participant Role Responsibilities
Identify four [4] examples
of the financial participant
Banks
Safely keep
savings of the
people as deposits
and earned profit
from the
difference in
interest between
paid and received
interest.
Maintaining
uninterrupted supply of
loan able fund and thus
contrub8uutes to
increase productivity
and economic growth.
National Australian Bank ,
Commonwealth Bank,
Australian and New Zealand
Banking Group,
Westpac.
Credit Unions/Building
Societies
Provide loans at
ordinary means,
Keeping all the
funds and profit
circulate among
members and
prevent the any
benefits of
external
shareholders.
Empowerment of its
members.
Encourage saving,
provide loans at
affordable interest
Offer financial
education
Australian Central Credit
Union Ltd (trading as
People's Choice Credit
Union)
Bananacoast Community
Credit Union Ltd (BCU)
CAPE Credit Union Ltd
(trading as CAPE)
Central Coast Credit Union
Merchant Banks
Provide business
loans,
Offers a package
of consultancy and
banking service
Has the responsibilities
to give best advices to
its client given the
circumstances.
Make profession dealing
in quick, efficient
manner that entails least
cost
ABN AMRO BANK,
Barclays Capital
Bank of America and
National Association
BNP Paribas
Insurance Companies
Make payment to
a beneficiary on
account of claim
events
Provide monetary
assurance in return
of premium.
Offers a fair deal to
customers,
Should fully investigate
any claim apart from
own interest
Allianz
QBE insurance
GIO
Trucker insurance HQ
Insurance Brokers
Sells insurance
policies in terms
of best negotiation
with clients.
Have detailed
knowledge about
different insurance
plans and suggest
best plans for the
clients.
Maintain a transparency
in insurance policies.
Make negotiation with
companies to secure
best returns at
affordable premiums for
clients.
Insurance Brokers Australia,
National Insurance Brokers
Association of Australia,
General Insurance Brokers of
Australia Pty Ltd, AIB
Insurance Brokers
Gives advises
about saving
portfolio that is
Give right advises
considering different
aspects like risk
IPAC Wester Australia,
Tupicoffs Independent

10ACCOUNTING FINANICIAL ANALYSIS REPORT
Financial Advisor whether to keep it
in home or in bank
or make some
financial
investment.
involved in investment ,
current market condition
and expected future
returns.
Financial Planning, Escala
Partners, Financial Planning
Association of Australia LTD
Mortgage Broker
Financial expert
offering lending
facilities from
more than one
lender in real
estate business.
Make loans available at
least possible rate and
help- client to find the
best deal
Finance Brokers Association
of Australia, Australian
Mortgage Lenders, Mortgage
Australia Group and
Advantage Mortgages
Australia
Managed Funds
The role of
managed is
pooling together
with other
investments of
investors.
The managed funds of
managed funds are
responsible for selecting
and managing the
investments of the
companies
PM Capital Asian
Companies, Forager
International Shares, MFS
Emerging Markets Equity
Superannuation Funds The
superannuation
funds is intended
compulsorily as
the means of
savings for
employees
The Australian
government model are
responsible for
regulating the
superannuation funds of
the employees.
Energy Super, Statewide
Super, Catholic Super and
ASFA
Share Brokers
Agents help the
clients in buying
or selling shares or
other securities in
the stock market
Assist clients to have the
best deals.
Advise clients about
right timje3s of
investing in shar4e3
market so that risk can
be minimized.
Stock brokers association of
Australia, CMC Markets
Stockbroking, AMSCOT
stockbroking, CPS Capital
Accountants
Perform financial
operation.
Keeps record of
financial data,
entry and prepare
financial report
based on
accounting data.
Make sure that they are
working maintaining
proper law. If there is
any possibility of
beaching the law then
their responsibility is to
inform proper authority
BDO Australia, CPA
Australia, BDO Australia
Darwin and WMS Chartered
Accountants

11ACCOUNTING FINANICIAL ANALYSIS REPORT
Regulators
Works in
designing
administrative
laws, takes
decision about
regulatory laws,
legislation and
make rules.
Proper assessment of
economic condition
before designing laws
and regulation.
Maintain transparency
or uniformity in the
designed law.
Australian Prudential
Regulatory Authority,
Australian Financial Security
Authority, Council of
Financial Regulators and
Department of Treasury
Activity 1d
Answer i)
Four major banks highly influence Australian economy. Four most profitable
organizations in Australia are – the Commonwealth Bank, Westpac, National Australian
Bank and ANZ. However, all of them are attacked in the banking inquiry held at Canberra.
The banking industry is subject to inquiry because of the banks are accused of not passing the
rate cut’s facility to their customers. The implication is that the banks are taking advantage of
making additional profit from the delay process. The additional earnings of banks from not
passing the rate cut on daily basis is $8.6 million. The last recorded delay lasted from 8 to 20
days.
Another argument supporting the inquiry is the considerable remuneration earned by
the senior executive officers in these banks. For chief executive in National Australian Bank
is accused of taking $5.48 million. The package for Commonwealth Bank is $12.3 million.
This gives the high positioned official additional incentives to stick to their ongoing policy.
The purpose of the inquiry is to provide customers a clear accountability by bringing the true
picture of the banking industry upfront. In the inquiry, banks should be able to give