Below are income statements for 2 companies, the Commonwealth Bank of Australia and Wells Fargo of the USA, discuss the similarities and differences in the two statements in terms of format used, terminology, level of details provided in the statements and other differences you have noticed between the two companies. 300 words minimum
Commonwealth Bank income statement
Income Statements For the year ended 30 June 2014 Group Bank 2014 2013 2014 2013 2012 $M Note $M SM SM $M 35,707 Interest income 33,645 34,739 38,258 34,860 (18,544) (21,494) (23,541) Interest expense (20,805) (25,136) 12,166 Net interest income 15,101 13,934 13,122 13,366 4.039 Other banking income 4,320 4,172 6,378 5,609 Net banking operating income 19,421 18.106 17,161 19,744 17,775 2,356 Funds management income 2,147 1,959 942 Investment revenue (1,242) Claims, policyholder liability and commission expense (1,162) (599) Net funds management operating income 2,034 1,847 1,586 2,604 Premiums from insurance contracts 2,353 2,114 Investment revenue 547 449 547 Claims, policyholder liability and commission expense (2,118 (1,879) (1,698) from insurance contracts 1,033 Net insurance operating income 923 Total net operating income before impairment 20,876 19,710 22,488 19,744 17,775 and operating expenses Loan impairment expense 2.13 (918) (871) (1,146) (1,089) (1,042) (9,085) (8,762) 7,301) (9,573 (7,866) expenses Net profit before income tax 11,997 10,645 9,859 11,007 432 (2,899) (2,705) (2,565) (2,199) Corporate tax expense (3,221) (126) (112) (122) er tax expense Net profit after income tax 8,650 8,442 7.634 7,032 7.233 Non-controlling interests (19) (16) (16) Net profit attributable to Equity holders of the 7.618 7,016 7.233 8,631 8,442 Bank (1) Comparative information has been restated to reflect the impact of changes in accounting policy. Refer to Note 1(f for more details. The above Income Statements should be read in conjunction with the accompanying notes. Income Statements For the year ended 30 June 2014 Group Bank 2014 2013 2014 2013 2012 $M Note $M SM SM $M 35,707 Interest income 33,645 34,739 38,258 34,860 (18,544) (21,494) (23,541) Interest expense (20,805) (25,136) 12,166 Net interest income 15,101 13,934 13,122 13,366 4.039 Other banking income 4,320 4,172 6,378 5,609 Net banking operating income 19,421 18.106 17,161 19,744 17,775 2,356 Funds management income 2,147 1,959 942 Investment revenue (1,242) Claims, policyholder liability and commission expense (1,162) (599) Net funds management operating income 2,034 1,847 1,586 2,604 Premiums from insurance contracts 2,353 2,114 Investment revenue 547 449 547 Claims, policyholder liability and commission expense (2,118 (1,879) (1,698) from insurance contracts 1,033 Net insurance operating income 923 Total net operating income before impairment 20,876 19,710 22,488 19,744 17,775 and operating expenses Loan impairment expense 2.13 (918) (871) (1,146) (1,089) (1,042) (9,085) (8,762) 7,301) (9,573 (7,866) expenses Net profit before income tax 11,997 10,645 9,859 11,007 432 (2,899) (2,705) (2,565) (2,199) Corporate tax expense (3,221) (126) (112) (122) er tax expense Net profit after income tax 8,650 8,442 7.634 7,032 7.233 Non-controlling interests (19) (16) (16) Net profit attributable to Equity holders of the 7.618 7,016 7.233 8,631 8,442 Bank (1) Comparative information has been restated to reflect the impact of changes in accounting policy. Refer to Note 1(f for more details. The above Income Statements should be read in conjunction with the accompanying notes
