AUSTRALIA

1
AUSTRALIA

• Amanda Johnson
• Samantha Knurbein
• Skyler VomDorp

2
General Information

• History
• Culture
• Political System

3
Economic Information

• Governmental Role
• Inflation
• Tax Structure

4

• Capital Markets
• Banking System
• Regional Agreements
• New Zealand Australia

5
Bank capital and reserves ( ratio to balance
sheet)

• The soundness of the Australian financial system,
  measured by Moodys Bank Financial Strength Index,
  was recently rated as one of the highest in the
  world.

6

• Accounting Education
• Chartered Accountants Program
• Regulatory Bodies
• Australian Accounting Standards Board (AASB)
• Basis for Accounting Principles

7
Accounting Information

• Differences between GAAP US GAAP
• FASB AASB
• Goodwill
• Employee Benefits
• Inventory
• Segmentation
• Revenue

8
Australian Stock Exchange

• Established in 1871
• A public company
• Regulated by the Australian Securities and
  Investments Commission (ASIC)
• Biggest Stocks Traded (market capitalization)
• BHP Billiton
• Telstra
• National Australia Bank
• Major Market Index
• SP/ASX 200
• At the end of 2004 it was the 8th largest world
  equity market

9
Comparing Statements

• United States
• 1. Income Statement
• 2. Balance Sheet
• Australia
• 1. Statement of Financial Performance Items
• 2. Statement of Financial Position Items

10
Comparing Statements

• United States
• Bank of America Corporation
• 2005 2004
• Loans and leases, net of allowances for
• loan and lease losses 565,746 513,187
• Total Assets 1,291,803 1,110,432
• Accrued expenses and other liabilities 31,938
  41,590
• Long-Term Debt 100,848 97,116
• Total Liabilities 1,190,270 1,010,197
• Retained Earnings 67,552 58,773
• Accumulated other comprehensive income
  (loss) (7,556) (2,764)
• Total Shareholders equity 101,533
  100,235
• Total liabilities and shareholders
  equity 1,291,803 1,110,432

11
Comparing Statements

• Australia
• National Australia Bank
• 2005 2004
• Assets
• Cash and liquid assets 8,430 8,080
• Due from other financial institutions 15,477 23
  ,494
• Due from customers on acceptance 27,627 16,344
• Trading securities 15,957 24,248
• Trading derivatives 13,959 17,939
• Available for sale securities 3,857 4,610
• Investment securities 7,466 11,513
• Investments relating to life insurance
  business 50,500 41,013
• Loans and advances 230,053 247,836
• Shares in controlled entities 75 158
• Regulatory deposits 118 177
• Property, Plant, and Equipment 1,974 2,257
• Income tax assets 1,530 1,367
• Goodwill 522 632

12
Internet Usage Restrictions

• Population 19,544,000
• Internet users 9,472,000 (2002)
• Country is very well connected to the Internet
• The Broadcasting Services Act, which came into
  force on January 1, 2000, lists material to be
  banned from websites
• The Workplace Surveillance Act, requires
  employers to ask their workers permission before
  intercepting their e-mail and monitoring their
  Internet activity