Developing Evaluation Criteria
The purpose of the study is to evaluate the annual report of Common wealth bank of Australia based on the visualization of the report incorporated by the company annually. The report that is being presented by the company every year is a comprehensive information regarding the activities that are being accomplished by it throughout the year (Barsnes Vaudel & Martens 2015). It intends to put forth a meticulous understanding to all the shareholders of the company regarding the activities executed by Common wealth bank of Australia inclusive of its financial performance.
Companies incorporates their annual reports inclusive of different graphs, charts as well as tables for representing the financial, operational as well as managerial valuations in the form of data which are processed information reveals numerically and accompanied by diagrammatic representation (Wang. 2016).
Tables integrates the raw data which are assimilated by recognizing a bunch of information from the annual reports and are processed in the form of an organized tabular format. This helps the user to extract their understanding regarding important aspects of the reports as well as the overall database significantly (Sperandei. 2014). The criterions that are obeyed in order to ensure an effective representation of it can be shown a follows:
- Relevance should persist between the objective of the table and the data within the table
- To make the table perfect and to support the provided information it is not required to add extra explanation
- The purpose of the tables is to be supplement to the texts but not to work as a replacement of the texts
- In the headings the unit of measurements should be mentioned
- In order to ensure easy understanding of the numerical information within the table it is important to incorporate the totals of row or columns in a statistically significant way
- More decimal places may be required for specific tables, else two decimal places are allowed mostly and the decimal values should be allowed properly
- Rounding the numbers while incorporating numerical data is preferred
- Tables should be placed in a specified place that is provided for the tables though preference should be given to position the tables close to the related text and not very far from it unless it will become cumbersome for the user to comprehend.
Apart from the tabular presentation of data, graphical representation of the same data sets are nothing but visual display of the information within the help of chart, plots and graphs (Spence. 2014). It renders a clear picture of the numerical data and information within the reports in a much more comprehensive way which helps the user to quantify the information and datasets and incorporate significant interpretation of them. Various graphs and charts possess some identical features that can be incorporated as follows:
- The independent variable or the explanatory variables of the graphs are being represented in the x-axis while the dependent or the response variable are represented in the y-axis
- Special symbols should be used to clearly exhibit the data points
- Related measurement units should be used to label the variables
- Between two consecutive labels there should be equal intervals
- The commencement of both the explanatory variable and the response variable should be from zero units at the origin
The different form of charts and graphs possesses some distinguishing features that can be shown as follows:
Vertical Bar Chart
Vertical charts are the pictorial representation where the explanatory variables are allowed to achieve a certain discrete values (Schwabish. 2014). It possess specific characteristics that are incorporated as follows:
- In the horizontal axis from left to right the independent variable is exhibited
- Shaded vertical bars as colored are used to represent the functional values which are extended upward up to certain heights from the horizontal axis based on the values on the y axis where the response variables are taken under consideration
- Precisely, this form of charts represents the comparison of the response variables at various levels of the explanatory variables
Column Charts – This charts helps to incorporate comparison between revenue overtime where the time line is kept in the x-axis as it is the independent variable while the response variable which is revenue is kept in the y-axis (Pandey et al. 2014).
Column heights – Comparative representation of the revenue earned are represented by the height of the columns
Effects of visualization – In order to ensure better visualization effect it is important to incorporate different colors for separate time periods
Vertical bar effects – The colors in the vertical bars represents the different levels of the revenue earned in terms of percentage (Kim. 2017). In the years when the revenue percentage are high, then there deeper color can be used while in case of the years when the revenue earnings are low there lighter colors are better choice.
Stacked Bar Chart
This form of bar charts have their uniqueness where individual bars that are placed vertically are used in a consolidated format of groups and each of the segment of the bars or columns puts forth various parts of the groups (Weissgerber et al. 2015). The respective characteristics that differentiate this form of graphs from other are represented as follows:
- For segregation purpose different colors are used to represent the sub-segments
- In each of the bars the sub-segments are presented horizontally
- The columns or bars compares the proportional values of the sub-segments at various levels of the explanatory variables as well as compares the total values with them
- The other features are similar to that of the common bar charts
In short, the stacked variable helps to assess the changes within a variable as a part of the whole.
Color effect in stacking – Years are represented in the y axis like the common bar chart and different colors are used to represent different composition of variables.
Heights – The vertical length of the stacked columns are proportional to the entire stacks
This form of charts is a particular form of charts that exhibits information as a series of data points or markers by connecting the locus of the points with a straight line. The characteristics of the line charts are as follows:
- At various level so the independent variable the dependent variables are represented as markers
- From left to right the markers are presented in horizontal manner
- Different trends or patterns are represented by the line charts and this is one of the main reason behind preparation of the line charts
- The major basis of differentiation between bar chart and the line charts is that one represents the continuous change in the variables while the other represent number of discrete points
The aspect of report evaluation of the annual performance are represented through graphs and charts (Mignini et al. 2016). Effective presentation with meaningful data incorporates the actual scenario that is prevalent within the company and helps to understand about its financial health.
Notably, Commonwealth Bank of Australia recognized and established of the country. The headquarter of the bank is located at Sydney it is the first largest bank white financial services across the country institutional banking in countries like Fiji, New Zealand, Asia, USA as well as united Kingdom. Requirement of Australia have founded the bank in 1911 and privatized the bank by 1996. The enlisting of the bank in the Australian stock exchange took place in 1991. Annual reports of the company was published appropriately based on the guidelines ASIC. Notably, the financial reports are highly valued by various Financial Institutions since it is the main tool chatting investors as well as foreign clients. To provide sufficient information to its shareholders regarding the company it incorporates various graphs and charts about their financial information. The tables and charts are incorporated in the annual report of the Commonwealth Bank which can be discussed as follows
The tabular format of the company can be represented as follows:
Figure 1: Group Performance
The various financial sectors based on the services that the company managers in order to operate its business endeavors under various brands. The overall net profit of the company flex the profitability that is generated by various sub-sectors that are differentiated based on the diversified financial services that has been deployed by them into the market. The above table represents dress combination of financial services that are allocated the profit that are being earned from various branches of the Commonwealth Bank of Australia (Commbank.com.au. 2017). A lot of factors that are involved in this allocation process cooperative within the table to reflect proper information which will be essential for the users. The highlighted sections reflect the group performance of various segments.
Figure 2: Shareholder’s Summary
Shareholder serving counselors as the owners of the company and hence the company frequently intent to highlight essential information in the form of processed data to summarize all the returns that are being provided to the shareholders. Beside fund allocation it is important to justify and evaluate the performance of the company within a single table which is provided above.
Figure 3: Market Share
The market share of the company reflects its growth in business and as well as measures the market capitalization in various periods that are being exhibited by the company. The different heads as well as segments are segregated in order to reflect the market share and information related to the financial performance various level of fluctuations in the market and the companies endeavor to cope up with it.
Net Interest Income:
Figure 4: Net Interest income
In case of the banking companies it is been found that the total revenue that is being accumulated is inclusive of different types of incomes which is shown in the table through proper numerical figures. It helps in reviewing the performance of the company as well as strategizing new initiatives that will ensure the Commonwealth bank's stabilization in the market.
Graphical representations are various format of incorporating the information that are previously been shown through tables as numerical figures. It is being done in order to ensure that the data 3 tables are properly understandable as well as visually realizable.
The company presented its Pie chart as follows:
Figure 6: Return on Equity
Return on equity is presented in the pie chart where the each of the segments reflects the graph from year to year while the percentages are revealed side by side for each year respectively. The particle boards are generated by the company each year.
The bar charts of the company can be incorporated as follows:
Loan Impairment Expenses:-
Figure 7: Loan Impairment Expenses
The bar chart above represents the loan impairment expense through various sections where each of the sections states about the living expenses that have been incurred in various segments by the company. The graphs lights the semiannual periods in the x-axis as well as the half yearly loan in payment based on the acceptance of loans and on average gross loans. This helps the user to easily compare the semiannual download for the last financial years which supports in appropriate decision making of the company itself as well as from the perspective of the shareholders and investors.
Figure 8: Cash EPS
This is the incorporation of the Earning per share of the company based on various important financial metrics for the investors. The executed cash EPS attributable to the shareholders due to the reason that the bar chart or convenient to them why the vertical bars denote the amount generated by EPS relative to the time frame of 5 years that are exhibited in the x-axis.
Stacked Bar Chart
The stacked bar charts can be incorporated as follows:
Net Trading Income:
Figure 9: Net Trading Income
This shows the net trading income for the semiannual periods and each of the bar consist of three segments which are total sales, CVA/FVA and trading income. This give a comparative overview and hence are differentiated with various colors to illustrate the significant relationship trains between one another.
Figure 10: Collective Provision
The bank has created provisions in terms of loan impairments. The sections in the graph denotes the closing balance of loans show the individual bars in monthly basis. Various colors are given to the loan impairment provisions in order to classify the different loans which will help the investors to separately mark them.
Figure 11: Impaired Assets
The stacked bar graph reflects the aggregate balance regarding commercial impaired assets. Each of the individual bars helps the user to understand about the total amount of assets after the end of each financial performance send separate segments of commercial troublesome as well as gross impaired sort by helping the user to access about the effects that these factors incorporates upon the financial stability of the company.
The government bank of Australia line charts in its report which can be represented as follows:
90 + days Arrears Ratios:
Figure 12: Line Charts
It is being shown above in the line charts of the company in arrear ratios over a period of 90 days in case of various items. The items in the x-axis provides implication regarding the measurement of the rates of arrear ratios. The following three lines exhibit related issues regarding three different credit items for the same periods
Figure 13: Share Price
It is been found that the share prices fluctuates over time and it is being by the line charts. Movement of the market share prices are shown in the figures what the line chart represents the share prices and are labeled in the y-axis, based on various periodic intervals shown in the x-axis.
Financial Institution Customer Satisfaction – Competitive Context:
Figure 14: Customer Satisfaction
The aforementioned line chart reflects various levels of customer satisfaction depending upon the utility that they have derived pingback consumers for the company that are reflected within various periods. Balance of 4 lines represents the level of satisfaction providing the financial performance of Australia that is inclusive of the Commonwealth Bank also. The preparation is made in order to compare the customer satisfaction levels as well as the competitors that has prevalence as well as dominance in the market.
Based on the annual reports that is been in the Commonwealth Bank of Australia the statements can be drawn about its financial performance. The tabular as well as graphical presentation company includes the productivity of the company within its market as well as is inclusive of related texts. This format of Representation keeps the understanding of the users regarding financial performance of the Commonwealth Bank of Australia very simple yet sophisticated. It helps the users to identify the requisite information that are relevant to their needs. Conclusion can be drawn regarding the fact that the Commonwealth Bank has fulfilled its basic criterions regarding revealing financial information and supporting the shareholders as well as investors date with the company for the long run. Information are easily understandable show the presentations of graphs charts as well as tables and helps the users to find necessary information and fulfill their purposes with ease.
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