Research report on COMMONWEALTH BANK OF AUSTRALIA

(Will upvote if on Commonwealth Bank of Australia)

Board members are concerned about the information provided in the financial statements regarding Property, Plant and Equipment (PPE) given that it is a major component of the companys financial position and performance and may have significant impacts on the financial ratios and returns. They are keen to verify whether the disclosures for PPE meet the objective of general-purpose financial reporting and qualitative characteristics of useful financial information as this could affect the decisions made by the users about investing in the company. They are especially concerned about the assumptions and estimations made for the PPE in light of COVID-19 impacts over the last 18 months. Therefore, the Board decided to have a review of the relevant disclosures in the companys annual report for the year ending 30 June 2020 pertaining to PPE and whether these disclosures were aligned with the Conceptual Framework's objective and qualitative characteristics of financial reporting. The purpose of reviewing last years annual report is to ensure that all relevant information is disclosed this year.

LINK: 21-129MR ASIC highlights focus areas for 30 June 2021 financial reports under COVID-19 conditions | ASIC - Australian Securities and Investments Commission

Research report on: COMMONWEALTH BANK OF AUSTRALIA

1) Critically analyse to what extent the 30 June 2020 annual report of your company meets the disclosure requirements for PPE as per AASB 116.

2) Based on your findings in question 1, analyse to what extent the disclosures on PPE satisfy the fundamental and one of the enhancing qualitative characteristics of useful financial information.

3) Based on your findings in question 2, discuss to what extent the disclosures on PPE align with the objective of general-purpose financial reporting.

4) Recommend any actions to be taken by your company to improve their disclosures for 30 June 2021 annual reports based on your analysis in question 2 and 3.