Corporate Accounting Assignment: Analysis of Westpac Banking Corp and NAB

Corporate accounting Assignment 1
CORPORATE ACCOUNTING ASSIGNMENT
Author
Course Title
Professor
City
Date

Corporate accounting Assignment 2
Table of Contents
Executive Summary...................................................................................................................3
INTRODUCTION......................................................................................................................4
OWNERS EQUITY...................................................................................................................4
Items on Westpac Banking Corp and NAB............................................................................4
Analysis the Debt as well as Equity Position of Westpac Banking Corp and NAB..............5
CASH FLOWS STATEMENT..................................................................................................6
Items Reported in Westpac Banking Corp and NAB Cash Flows Statements.......................6
Analysis of Westpac Banking Corp and NAB based on Cash Flow Statement.....................8
Analysis of Westpac Banking Corp and NAB.......................................................................8
OTHER COMPREHENSIVE INCOME STATEMENT..........................................................9
Items Reported In Other Comprehensive Income Statement.................................................9
The reason why the items reported in other comprehensive income statement are not
recorded in the income statement.........................................................................................10
Analysis of the Other Comprehensive Income between Westpac Banking Corp and NAZ
..............................................................................................................................................10
Whether the Other Comprehensive Income Items ought to be included while assessing
Managers’ Performance........................................................................................................11
ACCOUNTING FOR CROPORATE INCOME TAX............................................................11
The Tax Expenses Reported in Westpac Banking Corp and NAB Latest Financial
Statements.............................................................................................................................12
Effective Tax Rate for the Two Companies.........................................................................12
Comments on the Deferred Tax Assets/Liabilities...............................................................12
Whether There Was an Increase or Decrease in Deferred Tax Assets or Liabilities...........13
Cash Tax Amount for Both Companies...............................................................................13
Cash Tax Rate for Both Companies.....................................................................................13
The reason behind cash tax rate being different from book tax rate....................................13
Conclusion................................................................................................................................14

Corporate accounting Assignment 3
Executive Summary
This report presented analysis of banks operating in Australia; that is NAB and the WBC.
The two banks latest financial statements were analysed. Based on the analysis, it was found
out that the two banks were doing relatively better in terms of cash flow generations. In fact,
it was found out that Westpac Banking Corporation had relatively high equity compared to
NAB. This means that WBC was basically in a better position in managing equity compared
to its counterpart. Further, it was found out that both WBC and NAB experienced steady
financial stability over the past three years of their operations.

Corporate accounting Assignment 4
INTRODUCTION
National Australian Bank and Westpac Banking Corporation are among the largest Australian
financial institutions. To be more specific, WBC is considered as among the big four banks
and second-largest institutions in Australia (Investing 2018). The bank offers or gives
comparable different financial services and products within New Zealand and Australia
(Westpac Group 2017).
NAB on the other hand, is one of the largest banking firms in Australia. The bank offers
different forms of services to its customers including wealth management, investment
banking platform and banking services. In other words, it is amongst Australian big four
banks by market capitalization (NAB 2017). This firm serves around 12.7 million clients
across the globe. As such, the report presents analysis of WBC and NAB based on their latest
financial statements.
OWNERS EQUITY
Items on Westpac Banking Corp and NAB
NAB
There exist a number of items which are reported in both banks statement of owner’s equity.
To start with based on NAB statement of owner’s equity numerous items are reported. The
first item reported is the contributed equity, reserves, non-controlling interest as well as
retained profits. NAB Contributed equity entailed issuance of some ordinary shares transfer
from the equity-based compensation reserves as well as redemption of the national capital
instruments (Investing.com 2018). It reserves included total comprehensive income, transfer
from the equity-based compensation reserves, equity-based compensation and transfer to the
retained profits. Further, NAB retained profit comprised of redemption of the national capital

Corporate accounting Assignment 5
instruments, total comprehensive income, distribution on the other equity instruments,
dividend paid, and transfer to the retained profits (NAB 2017).
NAB: Change in the Items reported in equity statement
Based on the statement, NAB contribution equity increased from 32,524 million to 32,866
million by June 2017. The increase was attributable to continued issuance of ordinary shares
in the year 2017. The bank reserves decreased from 309 million to 190 million. Decrease in
NAB reserves was attributable to negative amount in it total comprehensive income as well
as decrease in transfer to the retained profits as well as transfer from the equity-based
compensation reserves. Retained profit for the bank decreased from 15,719 million to 15,545
million. This was due to increased dividends paid to shareholders.
Westpac
Items reported in Westpac Banking Corporation statement of equity comprised of share
capital, non-controlling interests, retained profits and reserves (Westpac Group 2017). WBC

Corporate accounting Assignment 6
Share capital included exercise of the employees share options, dividend reinvestment plan,
disposal of the treasury shares and purchase of the shares. Reserves for the bank entailed
share based payments as well as other changes. WBC Retained profits included dividends on
the ordinary shares as well as other changes. Finally, WBC non-controlling interest included
other charges.
Westpac: Change items reported in the equity statetement
WBC share capital increased from 33,014 million to 34,394 million. It reserves increased as
from 727 million to 794 million (Westpac Group 2017). Increase in WBC share capital was
as a result of increase in its other comprehensive income. Retained earnings increased from
24,379 million to 26,100 million. The increase was attributable to the increased net profit. It
non-controlling interests decreased from 61 million to 54 million. The decrease was
attributable to upsurge in net interest charges over the year resulting in decreased non-
controlling interest. Westpac Banking Corp total equity increased from 58,120 million to