i will send the assignment in chat boxFormat of the Report(3000 words) Your submitted assignment at...

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i will send the assignment in chat boxFormat of the Report(3000 words) Your submitted assignment at least should have the following details:   a. Assignment Cover page clearly stating your name and student number   b. Executive summary c. A table of content d. A brief introduction of the companies you had chosen and an overview of what you discussed in this assignment e. Body of the report where you write your answers with appropriate section headings   f. Conclusion (No recommendation is necessary). g. List of references. (Inclusion of any references in this list without in-text referencing will be a futile exercise.) Three Companies Name are: 1. Australia and newzealand banking group ltd(ANZ) 2. Australian Finance group ltd(AFG) 3. Common wealth bank of Australia(CBA) Go to the website of your selected companies. Then go to the Investor Relations section of the website. This section may be called, “Investors”, “Shareholder Information” or similar name In this section, go to your companies’ annual reports and save to your computer your firms’ latest annual reports consecutively for last three years. Do not use your companies’ interim financial statements or their concise financial statements. Please read the financial statements (balance sheet, income statement, statement of changes in owner’s equity, cash flow statement) very carefully. Also please read the relevant footnotes of your companies’ financial statements carefully and include information from these footnotes in your answer.  You need to do the following tasks:  EQUITY &LIABILITY  (i) From your companies’ financial statements, list each item of equity reported and write your understanding of each item. Discuss any changes in each item of equity for your firms over last three years articulating the reasons for the change.  (ii) From your companies’ financial statements, list each item of liability reported and write your understanding of each item. Discuss any changes in each item of liability for your firms over last three years articulating the reasons for the change.  (iii) Provide a comparative analysis of the debt and equity position of the three firms that you have selected.   CASH FLOWS STATEMENT (iv) From the financial statement of your chosen companies, list each item reported in the cash flows statement and write your understanding of each item. Discuss any changes in each item of cash flows statement for your companies over last three years articulating the reasons for the change.  (v) Provide a comparative analysis of your companies’ three broad categories of cash flows (operating activities, investing activities, financing activities) and make a comparative evaluation for three years.  (vi) Also provide a comparative analysis of the three companies that you have selected explaining the insights that you can get from the comparative analysis.  OTHER COMPREHENSIVE INCOME STATEMENT (vii) What items have been reported in the other comprehensive income statement for each company? (viii) Why have these items not been reported in Income Statement/Profit and Loss Statements? (ix) Provide a comparative analysis of the items shown in the other comprehensive income statement section for the three companies. If these items were included in the income statement / profit and loss statements of each company, how would the profit attributable to shareholders of the company be affected? (x) Should other comprehensive income be included in evaluating the performance of managers of the company? ACCOUNTING FOR CROPORATE INCOME TAX (HIGHEST MARKS FOR THIS CRITERIA) (xi) What are the tax expenses shown in the latest financial statements of the three companies that you have selected?  (xii) Calculate the effective tax rate for all three companies that you have selected. Effective tax rate is calculated as (income tax expense / earnings before tax). Which one of the companies has the higher effective tax rate?  (xiii) Comment on deferred tax assets/liabilities that is reported in the balance sheet articulating the possible reasons why they have been recorded. (xiv) Was there any increase or decrease in the deferred tax assets or in the deferred tax liability reported by each of your selected companies? (xv) Please calculate the cash tax amount for all three companiesusing the book tax amount, changes in the deferred tax assets and deferred tax liability (please do your own research for your better understanding of these concepts and the method of calculating the cash tax amount the book tax amount.)  (xvi) Calculate the cash tax rate for all three companies. Which company has higher cash tax rate? (Please do your own research to familiarise yourself with how to calculate cash tax rate).  (xvii) Why is the cash tax rate different from the book tax rate? Please remember some aspects of your companies’ treatment of tax can be a very complicated area, particularly for some companies. For a better understanding of the concepts included in the assignment that has not been introduced in the class, please do your own research.

Soumi · Accepted Answer

ACCOUNTING
NAME: ____________________
STUDENT NUMBER: __________________________
Executive Summary
This assignment deals with analysis of the financial statement of Australia New Zealand Banking Group Limited, Australia Finance Group Limited and Commonwealth Bank of Australia. In the initial part of the assignment, the equity and liability of the three companies has been analysed over a period of three years. The same was followed by analysis of cash flow statement, other comprehensive income statement and accounting for corporate taxes. A detailed analysis of the three companies has indicates various results, which have been mentioned in detail in the assignment. The mentioned statement of the three companies for 2016, 2017 and 2018 has been analysed in detail. 
Table of Contents
Introduction of Companies	4
Australia and New Zealand Banking Group Limited (ANZ)	4
Australian Finance Group Ltd (AFG)	4
Commonwealth Bank of Australia (CBA)	4
Equity and Liability	4
Australia and New Zealand banking group Limited ANZ)	4
Australian Finance Group Limited (AFG)	5
Commonwealth Bank of Australia (CBA)	5
Cash Flow Statement	6
Australia and New Zealand Banking Group Limited (ANZ)	6
Australian Finance Group Limited (AFG)	7
Commonwealth Bank of Australia (CBA)	8
Other Comprehensive Income Statements	10
Australia New Zealand Banking Group Ltd (ANZ)	10
Australian Finance Group Limited (AFG)	10
Commonwealth Bank of Australia (CBA)	11
Accounting for Corporate Tax	11
Australia and New Zealand Banking Group Limited (ANZ)	11
Australian Finance Group Limited (AFG)	12
Commonwealth Bank of Australia (CBA)	12
Conclusion	14
References	15
Introduction of Companies
Australia and New Zealand Banking Group Limited (ANZ)
Australia and New Zealand Banking Group Limited (ANZ) is the third largest bank in Australia in terms of market capitalisation. Majority of the operations of the company as based in Australia, with major focus on commercial and retail banking. It offers variety of product and services to meet the need of each target customer (ANZ, 2017). 
Australian Finance Group Ltd (AFG)
Australia Finance Group Limited (AFG) is a retail financial services group having operations in all the major cities and regional centres throughout Australia. The company was founded for providing home loans in the year 1992. The core business of the company is residential and commercial aggregation (AFG, 2017). 
Commonwealth Bank of Australia (CBA)
It is a leading service provider related to financial services. It does not provide retail, institutional, business, retail and wealth management products to its customer. It is the largest financial institution in Australia in terms of market capitalisation (CBA, 2018). The company focuses on people, productivity, technology and financial strength to ensure that it is the largest financial service provider. 
Equity and Liability 
Australia and New Zealand Banking Group Limited ANZ)
In the year 2016, the market capitalisation of the company was $80,886 million. The same rose to $86948 in the year 2017. However, in 2018, the market capitalisation was $80979. However, the earnings per shares have continually increased in the past 3 years. The number of shareholders has decreased in 2018 in comparison to 2016. This indicates that the company has bought back some of its shares from the market. The company has paid 100% of its interim as well as final dividend. The total return to shareholders in the year 2016 was 9.2%. However, the same figure in 2017 rose to 13.1% (ANZ, 2017). 
However, there was a steep decrease in the return to shareholders to 0.6% in the year 2018. The company has been able to decrease its cost to income ratio in 2017 to 46.1% from 50.7% in 2016. However, the company was unable to sustain the ratio and the ratio rose to 51.6% in the year 2018. The dividend payout ratio has also reduced, which indicates that the company has some profitable projects; in hand, or the company has liquidity shortage. The number of fully paid ordinary shares has reduced, which is an indication of the decrease in the number of equity shares in the market due to buy back process of the company (ANZ, 2018). 
Australian Finance Group Limited (AFG)
In the year 2016, the equity was valued at $88.52 million, $107.295 million in 2017 and $93.324 million. The change was mainly due to the change in the retained earnings. In the year 2017, the retained earnings were $63.41 million. The same was due to healthy performance of the company. On the other hand, the same value dropped down to $49.05 million in the year 2018. There was no change in the issued share capital of the company, which indicates no issues of additional shares or buy back of existing shares. The total equity for the shareholders was the highest in the year 2017 due to high-retained earnings. There has been an increase in the share based payment reserve in comparison to the year 2017 and 2016. 
There has been an increase in the current liabilities as well as long-term liabilities in the year 2018 over 2017 (AFG, 2017). This indicates that the company has to borrow funds from external sources. The total liability in the year 2016 was $1741.801 million in the year 2016, $1909.931 million in the year 2017 and $2200 million in the year 2018 (AFG, 2018). This indicates that the company is raising funds from external sources to finance its financial operations. The deferred tax liability of the company has increased in the recent years due to increase in operations of the company. The top line of the company has increased, but the bottom line of the company has not increased in a similar manner. 
Commonwealth Bank of Australia (CBA)
The total shareholder’s equity in the year 2016 was $60564. The same figure in 2017 was $63716 million and $67860 million. The ordinary share capital of the company has been increasing in the last 3 years, which indicates the use of equity share capital for the expansion process. There has been a decrease in the reserves in the year 2017 over 2016. The same has been used for expansion projects of the company. However, the retained profits have increase in 2018 over 2017. This indicates that the company is able to retain its profits for future expansion. This may be an indication of healthy operations of the company (CBA, 2017). 
The company has invested in profitable project, which has led to the increase in equity and reserves. The deposits and public borrowing has decreased in 2018 over 2017, which is an indication of downsizing of business operations of the company. The derivatives liabilities have decreased in $28472 million in 2018 from $30330 million in 2017. This indicates that the company has taken steps to reduce the liabilities. The debt has increased in 2018 in comparison to 2017 and 2016. The current tax liabilities have also increased, which indicates the strategy of the company to reduce long-term debt by raising short-term finance (CBA, 2018). There has been a decrease in deposits and public borrowings, which is not a good symbol for the company. 
Cash Flow Statement
Australia and New Zealand Banking Group Limited (ANZ)
The profits in the year 2017 have increased over 2016 from $5720 million to $6421 million. There has been a decrease in the provision for credit impairment,

Format of the Report(3000 words) Your submitted assignment at least should have the following details: a. Assignment Cover page clearly stating your name and student number b. Executive summary c. A...

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