Accounting Treatment Changes

Document date:  Wed 20 May 1998
Published:  Wed 20 May 1998 00:00:00
Document No:  137544
Document part:  A
Market Flag:  N

HOMEX - Melbourne                                                     

As advised in the note to the Australian Stock Exchange dated 31
March (refer below), Australia and New Zealand Banking 
Group Limited's 1998 interim results (to be announced on 27 May)
incorporate some changes in accounting treatment of direct income
related costs and the approach to provisioning.

These changes require restatement of prior periods to ensure
comparability. Details are attached.

P Marriott



ANZ's interim results for the half year ending 31 March 1998 will be
released on 27 May at around 8.30 am EST following lodgement at the
Australian Stock Exchange.

There will be two changes in accounting treatments contained in these

Firstly, as part of the move to Economic Loss Provisioning which has
been previously announced, ANZ will also tax effect the General
Provision for doubtful debts.

Secondly, with the release by the International Accounting Standards
Committee of revised IAS1 and to be consistent with Australian
practice, ANZ will change the treatment of certain interchange fees,
brokerage and operating lease depreciation to report income net of
these related costs.

To ensure comparability of results, prior period numbers will be
adjusted to the new bases. The tax effecting of the General Provision
will increase the reported provision charge with a compensating
reduction in tax expense. The netting of related costs will reduce
income and costs by equal amounts. This will lower the cost-to-income
ratio. These changes will have no impact on reported annual profits
(although for 1997, there will be a reallocation of General
Provisions from the second half to the first half to reflect the
application of Economic Loss Provisioning).

Restated prior periods data will be released in mid May before the
announcement of the interim results.

The 10 percentage point target reduction in the cost-to-income ratio
ANZ announced at the recent Annual General Meeting will now be from
the new (lower) base.

With the degree of interest in the Group's exposure to the economies
of East Asia, a schedule of total exposure by country (on a basis
that is comparable with the recent Standard & Poors release) as at 31
March (and comparative 30 September numbers) will be released when
available in mid April.

P Marriott 

The Company has provided details of changes in accounting treatment
of direct and income related costs and the approach to provisioning.

A full copy of this announcement is available at the ASX Investor
Centre in your state capital. For further assistance, contact ASX
Customer Service on 1 300 300 279.